Geo's added value when selling house?

Discussion in 'General Discussions' started by ssmith, Mar 29, 2018.

  1. ssmith

    ssmith Member

    We plan on selling our house in another year. We have a ground loop Climatemaster geo system that was installed in 2011. It is perfectly sized for the house and has been rock solid since installation.

    Not much in the way of comps in our area that have geo systems. Can we expect to have any premium added to the house listing because of the geo system? What are others seeing in their area? We do live near a college area, so home buyers here often have more interest in energy conservation / "green" building, though not sure if they're really willing to pay more for these things.

    My thoughts are that it is a plus just due to lowered heating and ac costs to someone not necessarily looking for geo heating. This might make the house more able to be sold vs other older houses in our area, but not necessarily reflected in the sale price. I can give the our real estate agent any graphs she wants as I've kept records of our electrical usage monthly since before the install. For us, the system has been great, and already paid itself off in fuel savings, so any extra at time of sale would be a win-win.

    How best to market?
  2. moey

    moey Member

    Past real estate agents always told me heating cooling systems add little to the value of a home. As long as what you have works reasonably. Of course you can find lots of articles saying otherwise.
  3. nc73

    nc73 Member Forum Leader

    Most do not want the complication of geo, unless they understand it and is looking for it. Might be hard to find someone to repair. I dismantled mine before selling the house, sold in a day.
  4. moey

    moey Member

    Based on the current market shoot for the moon and market it as being worth more. Houses around me literally get scooped up in hours of going on the market.
  5. nc73

    nc73 Member Forum Leader

    That's only valid if you're in a somewhat desirable location. Bad locations will always sit longer no matter the market.
  6. ssmith

    ssmith Member

    Wow. I had to double check. Thought I might have posted my question on the wrong maybe green building :)

    Seriously though, tell me more about the system you removed to sell your house. Was it working well? Was it older? What did you replace it with?

    In my case, I can't imagine a better or less expensive way to heat our place. We don't have access to natural gas, and we live in an area that has long cold winters. I would think it would be a no brainer, if given the choice between 2 properties, one with a geo system and 7 years worth of utility bills vs one with an oil or propane furnace...all things being equal...the buyer would not buy the geo house because it has a geo system?
    Last edited: Apr 3, 2018
  7. IronOak

    IronOak New Member

    Good evening SS,
    No, you are in the right place.
    Sadly, I'm not at my office desk right now to look at my research & notes...I've got a lot to say about this very subject!
    I will try to post when I get back into town.

    Warm Regards,

  8. nc73

    nc73 Member Forum Leader

    It was DIY and I had it setup as a hybrid, closed ground loop and I could switch to pump and dump at peak times when it gets too cold so i don't have to use heat strips. It actually did not come with heat strips. yes I went cheap. when i asked agents what they thought, most said unless someone was looking for one, it would not be a good selling point unless the buyers were knowledgeable. Not many HVAC people work on geo. I don't know many every day people that knows anything about geo. I just got another property in the works, so this one will have a better geo heat pump and probably looking at a pond loop. i will use the old one I removed for a future garage at the new property. In hindsight I should've sold it as-is, but i didn't want to risk it. The house is vacant and I don't want to be driving back and forth much longer. I'm several states away. I was amazed it sold same day! Would it have stayed on the market longer if I didn't remove the geo? Maybe, maybe not. If I were you just mark it up as you see fit. There's always room to negotiate.
  9. johnny1720

    johnny1720 Member

    I never in a million years thought that I would be selling our home. I have a 4 ton climate master that was also installed in 2011 and it has been rock solid as well. It costs about $700 to heat this place and about $500 per year to make hot water.

    The relator didn't think there was any value added to the home with the geothermal.

    Anyone have any thoughts or advice?
  10. Noobie

    Noobie New Member

    Realtors want a transaction to take place. Transactions take place when the selling price is low. They are not fiduciaries or your friend.
    —- Upton Sinclair

    I don’t intend to sell my house, but only an idiot wouldn’t value the geo system being installed here that cools without noise and heats without oil stink and cost. I loved the solar panels that the previous owner installed, and paid for them (indirectly), even though they weren’t an esthetic plus.
    waterpirate likes this.
  11. Deuce

    Deuce Member

    I wouldn't label all Realtors the same. I am a retired builder and Realtor of 7 years and have 2 WaterFurnace systems in my own home. I know the value of the systems.
  12. Noobie

    Noobie New Member

    I don’t think I said anything nasty about realtors, or that they didn’t understand the value of geothermal. Fact is, they are in the business of making real estate transactions happen. I have liked nearly all of our realtors over the years.

    PS on rereading my post, I guess I wasn’t clear who the idiot I was referring to was. I meant that a potential home purchaser who didn’t value geothermal over oil or gas was an idiot, not the realtor. My apologies for being unclear.
  13. mrpac

    mrpac Member

    I purchased a home with a GEO system installed already. It was NOT emphasized in the listing. In Ontario, I think that most still see it as a system that is overpriced, and the payback - if any is in the far future.
    I looked at it in a different way - I heard nothing good about propane - keeping a large 1 tonner somewhere on the property, or the alternative was wood stove and or oil. All of the alternatives were not favored.
    One of the homes that I looked at was purely forced air electric! Talk about expensive to operate. To me - the GEO was something that I looked forward to - but at the same time was thinking about what could replace it and at what cost.

    So far my experience has been good.

    The real-estate market here has been hot for the last several years, so there are a lot of uneducated relators that are simply making quick cash - at least that was my experience with the relators that I dealt with.

    Even working with HVAC techs in my business GEO is not a big seller for residential installations due to the cost mostly.
  14. ssmith

    ssmith Member

    Sorry, I'm just now getting back to this thread. Yes, some suggestions as our house has been on the market for a week now and we're getting a lot of activity and are currently sitting on one offer that isn't quite what we want (but have 3 showings booked today and 1 more tomorrow).

    Our realtor also didn't know anything about geo. She said, if you want to market it as a house with geo you are going to have to help and write something up. We did, and I'm attaching it here. Hopefully, it will help someone else out. We keep copies of it out on the kitchen table for prospective buyers to take. Also, we insisted the ad showed that the house, though old, was completely updated and efficient, so it really could compete with the newer homes out there.

    Here's the start of the ad:
    "Character abounds in this energy-efficient farmhouse! All the charm of its era updated for today's buyer. The geothermal heat & AC plus new vinyl siding are just the beginning! Custom cherry cabinets complement the eat-in kitchen w/recently tiled floor..."

    All that said, I don't know if the geo system will really ad much value to prospective buyers, but that may depend on the buyer. Likely for the one you don't have to educate, it will. For all the others, they may just be more interested in the colors of the walls and the kitchen counter tops. I do think our ad has helped generate the interest we're getting, though.

    Attached Files:

Share This Page