Recently, the National Association of Realtors , America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries, released the Realtors and Sustainability 2019 Report which found that consumers continue to look for eco-friendly features in a property and are willing to pay a premium to get them.
Other findings showed that in terms of demand, Solar Energy leads this trend. 83% of markets have properties available with a solar energy system. Combined with a perceived increase in the property value, these properties are moving quicker and selling for a higher price.
The study further showed that from March 1, 2018 – February 28, 2019, the median-valued residential property sold for 4.1% more than one without solar. With solar available in 94% of the real-estate markets in the Northeast, the New Jersey area real-estate market saw more gains than the national average with properties with solar systems installed selling for an average of 5.4%. 59% of property buyer factors some level of sustainability into their purchasing choice.
The Realtors and Sustainability 2019 Report was based on a sample of 112,305 practicing real estate agents completing online surveys. However, the National Association of Realtors recognizes that solar power is boosting property values and responding by creating more accurate methods to fine tune how to determine the market value of solar of properties equipped with solar power systems.
Zillow, an online real-estate data company, cites that the reason that properties with solar energy systems sell for a premium is because of the future energy savings they provide. While buyers pay more money upfront, the math calculations generally lead to the conclusion that they will save more money in the long term.
This is especially prevalent with businesses that have a large utility overhead and luxury homes with amenities such as heated floors, wine cellars, or electrically powered work-out equipment.
Zillow also reports that the median home prices in New Jersey have gone up 3.5% over the past year and will continue to rise. Looking at the 5.4% premium that solar brings to a New Jersey property, going solar makes sense to both save money on utilities and reap the benefits of current tax incentives. And should you decide to sell…you can be confident that you have added long term value to your property – this is the type of investment in your property where you don’t have to worry that your choices will go out of style.