Beat the Heat and Add Home Value (with Home Improvements)

A Automatic Sprinkler System

Can Actually Pay for Itself . . .

On the Resale Value of Your Home . . .

While the following article re-print is based on a US-based study that looked only at a specific region (Philadelphia) . . . we believe the results are still relevant here in Canada, and may be of interest to you in making home improvement decisions . . .

Beat the Heat and Add Home Value

by Marshall Loeb

New York Daily News, Friday, June 4th, 2004

NEW YORK (CBS.MW) Making your summer more enjoyable and increasing the value of your home can go hand-in-hand.

Two Florida State University professors  and the National Association of Realtors analyzed home improvements, calculating the average amount each (improvement) added to or detracted from a home’s (relative) value.  They examined 28,828 home sales in the Philadelphia, Pennsylvania-area between January, 1996 and March, 2003.

Looking to add to the value of your home?  Based on the results of the study, here are (some) projects that will help you and your family enjoy this summer’s warm weather and sunshine – without overheating.  The study indicated buyers were more interested in homes that had these features, and were willing to pay more for them, in combination with the other attributes (of the house)…

Specific Improvement Made…                  Increase in Value

  • Central air conditioning                                 +12.4%
  • Automatic lawn sprinkler system                +8.7%
  • In-ground pool                                                 +7.9%
  • Spa/Whirlpool                                                 +7.3%
  • Skylight                                                            +3.0%
  • Sunroom                                                         +2.7%
  • Patio                                                                +2.1%
  • Deck                                                                +1.9%
  • Playground equipment                                    +1.3%
  • Dock (waterfront properties)                           +1.3%

What does this mean to you?  On a $250,000 home (about the average price of a home in the Ottawa-area), an automatic sprinkler system could add as much as $20,000+ to its resale value . . . and that’s certainly worth thinking about .

But be careful Not all improvements will work to your benefit.  The study also indicated that adding a porch can actually decrease your home’s value by an average of 2 percent. And an above-ground pool can also decrease value by 1.9 percent.