Report: Marginal Impact of Electric Heat Pumps on Home Sale Price
Jun 19, 2014
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The Northwest Energy Efficiency Alliance (NEEA) released the result of a study conducted by ECONorthwest to
estimate the effect that electric heat pumps have on the sale price of homes in the Northwestern United States.
The study was conducted in five Willamette Valley, OR counties. The findings show that, in Benton, Lane, and Linn counties, homes with an electric heat pump were sold with a price premium of 1.1% to 4.4%. The houses were compared to those with other heating types and the study accounted for other characteristics of the properties. In Marion and Multnomah counties the study found no statistically significant difference in sale price between homes with a heat pump and those without.
In Benton, Lane, and Linn counties, the price premium for heat pump homes was greater for new homes than for existing homes.
Multnomah and Marion counties showed few homes as having a heat pump. Interviews were conducted with appraisers in Eugene, Olympia, Tri-Cities, and Idaho Falls. Appraisers in Eugene and Olympia viewed homebuyers as feeling “positive” or “very
positive” about heat pumps. Appraisers in Tri-Cities and Idaho Falls either did not know how homebuyers perceive heat pumps or said homebuyers did not believe it important have a heat pump.
Most appraisers stated that they make an upward adjustment to the appraised value of a home if it has a heat pump. The range of adjustment was from $1,000 and $5,000 per home, or 1.5% to 2.0% of the value of the home.
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