TAMPA CENTRAL Blog

Insulation Can Raise Local Home Value in the Tampa Central Area

The Importance of Return on Investment

The return on investment (ROI) of a project helps to determine the cost-to-performance ratio of the expense. Some common investments made by homeowners looking for a higher return include projects like updating the garage door, appliance upgrades, and remodeling. For example, the average ROI of an updated garage door in the southeast United States is about 88%, according to experts.

Calculating ROI is easy once you have all of the necessary numbers; you can even work with local industry professionals to get general estimations in order to plug in the appropriate numbers to gauge the cost-to-performance ratio. First, you need to calculate the Net ROI by taking the final value of investment (FVI) and subtracting the initial value of investment (IVI). Next, take the Net ROI and divide it by the Cost of Investment. Once you multiply the resulting number by 100%, you have calculated the ROI percentage. For more information on return on investment calculations, check out this breakdown by Investopedia.

Evaluating Your Investments

It’s important to stay diligent in evaluating the quality of your investments as a homeowner. Experts have found that reducing your monthly utility bills by focusing on energy-efficient upgrades can also increase the value of your home. However, there are various factors that can affect how much these changes will improve the house’s worth: your location, the current market, what type of upgrades, etc. The average energy costs in your region are also going to affect how long it may take for you to recoup the costs for these “green” upgrades.

Upgrading to energy-efficient appliances, systems, and fixtures are all popular changes that have the potential to attract buyers. After examining the habits of home buyers and sellers in 2020, the National Association of Realtors found that environmentally friendly features played a significant role in the choices of buyers. In addition to these findings, another recent report discovered that more than half of realtors said promoting energy-efficient features in listings could attract buyers.  Regardless of whether you’re planning to put your home on the market soon or you’re just being conscious of the impact of current decisions, the return on investment of energy-efficient changes improves your present savings and future prospects.

Lower Monthly Costs

The next question you may be considering is how upgraded insulation and air sealing can contribute to the savings of your household. According to Energy Star, about 90% of homes in the U.S. suffer from poor air sealing and insulation coverage, which contributes to severe air leaks, heat loss in the winter, and loss of cooled air in the summer.

According to the EPA, homeowners can save an average of about 15% on heating and cooling costs on a national scale. While each climate zone varies, this average doesn't take into account other factors such as household habits, regular energy use, and energy-efficient appliances. This article has more information on how the EPA calculates regional savings based on climate zones. The Tampa-central area falls into Climate Zone 2, which covers most of Florida. 

To be more specific, updating the insulation and air sealing in your home impacts the climate control in the building. The material helps to regulate temperature by reducing the rate at which heat enters and exits a building, which is known as heat transfer. If your home doesn’t have quality coverage or has improperly installed insulation, you’re more likely to experience drafts, cold spots, and irregular temperatures.

One of the most common ways homeowners can tell that their insulation is either deteriorated, damaged, or inefficient is when one room or a whole side of the house can’t stay at a consistent temperature with the rest of the building. This can cause the HVAC system to run more often in order to make up for these areas, attempting to match the desired temperature set on the thermostat. As such, you’re using more energy to replace the lost air that’s escaping through cracks, gaps, and deteriorated material.

If this issue isn’t taken care of in a timely manner, you’re likely to see an increase in maintenance fees to repair your overworked HVAC unit and monthly energy bills. Sealing these air leaks and updating deteriorated material can help to block encroaching heat in the summer and contain desired warmth throughout the winter.

Improving Energy-Efficiency

Energy efficiency is a significant influence on potential buyers, according to a report from the National Association of Home Builders. Buyers are more interested in current upgrades that they won't need to consider, so the appeal comes from the rate of return these investments can provide as an existing feature of the home. Insulation has several environmental impacts that can contribute to your home's energy efficiency. As mentioned early, these factors primarily come from the fact that upgraded materials can significantly reduce energy waste.

In fact, even the insulation material itself can have environmentally-friendly qualities. If the insulation is regularly evaluated and maintained, less material needs to be used which can contribute to reduced waste. Many insulation options are also made from recycled components. For example, cellulose insulation consists of 80% recycled material, which is mostly recycled newspaper. Denim insulation, on the other hand, is made from recycled jeans and fabrics.

The insulation industry is continuously making advancements and regularly updating practices to produce, install, and dispose of material in an environmentally conscious way. By changing the current insulation in your home, you can choose to install greener and more energy-efficient material that has the capability to last longer while also using less material and energy for production.

Upgrade Your Home Value in the Tampa-Central Area

Our team of insulation professionals at Koala Insulation of Tampa Central is trained and experienced in helping our community find cost-effective and every-efficient solutions. While our top priority is to improve the comfort and safety of our neighbors, our free evaluations also help you and your household focus on your current schedule and budget. With a better understanding of the current condition of your home's insulation and air sealing, you can target pain points while also planning ahead for future developments that can help to raise the value of your home and return on investment opportunities. Contact Koala Insulation of Tampa Central today to schedule your free evaluation and learn more about how insulation and air sealing can lower costs while increasing your home value.