Do home generators increase property value?

Do Home Generators Increase Property Value?

Home generators are becoming increasingly popular as homeowners seek to protect their properties from power outages and ensure a constant source of electricity. One common question that arises is whether installing a home generator can actually increase the value of a property. Let’s explore this topic in detail and examine the evidence to determine whether home generators do indeed increase property value.

Evidence Supporting Increased Property Value

Several sources indicate that home generators can have a positive impact on property value. According to a 2016 National Association of Realtors (NAR) study, home generators can increase property value by an average of $5,000 or 3-5% depending on the location. This suggests that homeowners who invest in a home generator may potentially see a return on their investment when it comes time to sell their property.

In a 2018 Generac Power Outage Survey, 75% of respondents believed that a backup generator adds value to a home. This sentiment is further supported by a 2019 Zillow survey, which found that homes with backup generators sold for 54% more than homes without generators in some New England areas. These statistics indicate that homebuyers perceive the presence of a home generator as a desirable feature, which can drive up the value of a property.

Additionally, a 2021 Houzz & Home survey revealed that 22% of homeowners planning a renovation would consider adding a generator or alternative power source. This further suggests that homeowners recognize the value of having a home generator installed and are willing to invest in one.

Factors to Consider

While the evidence suggests that home generators can increase property value, it is important to consider certain factors that may influence the extent of this increase. One key factor is the location of the property. In areas that experience frequent power outages, such as regions prone to severe weather events, the value added by a home generator may be more significant. On the other hand, in urban areas where power outages are rare, the impact on property value may be minimal.

The size and type of generator can also play a role in determining the value added to a property. Larger, whole house generators that can power the entire home are generally seen as more valuable than smaller, portable generators that provide limited backup power. The specific features and capabilities of the generator, such as automatic switching and remote monitoring, can also contribute to its perceived value.

Pros and Cons of Home Generators

Pros:

• Provides a reliable and constant source of electricity during power outages.
• Convenient to use as it automatically switches on and off when necessary.
• Ensures the safety and functionality of appliances and security systems even when you’re not at home.
• Can potentially save you money on hotel stays or spoiled food during prolonged power outages.
• May make your home more attractive to potential buyers and increase its value.

Cons:

• Can be expensive to purchase and install, with costs varying depending on the size and type of generator.
• Use may be sporadic, meaning you may not use it frequently.
• Takes up space in your yard and needs to be situated at a safe distance from windows and doors.
• Requires fuel storage if not connected to a gas line.
• Can be noisy, although whole house generators are generally quieter than portable generators.
• Requires occasional maintenance, including oil and filter changes and battery checks.

It is important for homeowners to carefully weigh these pros and cons before deciding to invest in a home generator. Consider your specific needs, budget, and the likelihood of power outages in your area. Consulting with professionals and obtaining multiple quotes from reputable generator suppliers can help you make an informed decision.

Conclusion

Based on the available evidence, it can be concluded that home generators have the potential to increase property value. Studies have shown that installing a home generator can add value to a home by an average of 3-5% or $5,000, depending on the location. Homebuyers perceive the presence of a home generator as a desirable feature, which can make a property more attractive and potentially lead to a higher sale price.

However, it is important to consider the specific circumstances and factors that may influence the impact of a home generator on property value. The location, size, type, and features of the generator, as well as individual buyer preferences, can all affect the extent to which a home generator adds value.

If you are considering installing a home generator, it is advisable to conduct thorough research, consult with professionals, and obtain multiple quotes to ensure that you make an informed decision. Assess your specific needs, budget, and the likelihood of power outages in your area to determine whether a home generator is a worthwhile investment for you.

Related Websites:

• Does a Whole House Generator Add Value to Your Home? – Upgraded Home
• Should You Get a Home Generator? Here’s the Pros and Cons – Tom’s Guide
• Do Home Generators Increase Home Value? – Generator Grid
• Home Generator Cost and Types – Bankrate
• Pros & Cons of Having a Home Standby Generator – Cannondale Generators