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Standby Generators Improve Resale Values
News from 2008 International Builders’ Show
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International Builders Show, Orlando, FL (Feb. 14, 2008) -- Over the past four years the popularity of home standby generators has skyrocketed as the frequency of power interruption has increased. According to the Electric Power Research Institute, over 500,000 people lose power every day in the United States. Causes of outages include bad weather, vehicular accidents, animal intrusions, digging errors and system malfunctions. As power companies struggle to bring back electricity, people suffer without air conditioning, heat, lighting or refrigeration. Even after the outage has ended, some homeowners are forced to deal with molds that formed while the air conditioner was out or pipes that froze from lack of heat.
The inconvenience of being without power has prompted many homeowners to take action. While owners of automatic standby generators enjoy fresh food, lights, and television, many people are still in the dark about the benefits of these units, especially the improved home resale value they provide. According to Remodeling magazine’s 2007 Cost Versus Value report, standby generators can provide up to 89 percent of a return on their cost in certain parts of the country. HGTVPro writer Ed Del Grande considers a standby generator a piece of equipment that makes homes more comfortable and secure. Not only can "a standby generator be a very powerful investment, it increases the resale value of homes," notes Del Grande. In a competitive real estate market a generator can be the deciding factor in a sale. Standby generators differ from their smaller, portable cousins. After the power goes out, portable generators must be manually started and connected to appliances through extension cords. A standby generator, on the other hand, is completely automatic and operates hands-free. The unit is wired into the home’s electrical panel, eliminating extension cords. And unlike portable generators that must be taken out of storage and kept away from water, a standby is permanently installed outside the home. It begins powering heat, air conditioning, and well pumps moments after utility power fails. This means when it senses utility power has returned, it safely shuts itself down and returns to standby mode. While portables run on gasoline and require frequent and problematic refueling, an automatic generator is connected to a home’s propane or natural gas supply, eliminating any messy refueling. But the ease of owning a standby generator extends beyond hands-free backup power and a reliable fuel supply. A standby provides security to a home even when the owner is away, and they are much quieter than portables as they are designed with a sound-attenuated, weather-proof enclosure. In the new home construction market, builders are seeing the advantages of standby units. "I have a client that has put generators on his homes to improve their safety during emergency situations. Among other value-added options, stand-by generators also improve the livability of homes and it makes homes more attractive and competitive to prospective home buyers," says, Steve Allen Shard, certified building designer, AIBD of Orlando. "Our clients are becoming educated in the intrinsic value of having a generator and the peace of mind they provide when local power generation is threatened. As a result, we are designing dedicated areas into many new homes specifically for standby generators. These units have a definite value far beyond their cost and are becoming extremely popular with an increasing number of our clients." More affordable than ever before, entry level standby generators cost less than $2,000, excluding installation. This is far from the exorbitant cost many people think and only a few hundred dollars more than a quality portable unit with comparable output. The size and cost of the generator will depend on how many circuits the owner wants powered during an outage and the size of their home. If a limited number of rooms and appliances are the main priority, a generator as small as 7,000 watts may be all that is necessary. If more power is needed, larger generators can easily provide electricity to an entire home. In areas where blackouts are common, some realtors consider a generator a necessity. Often, a home with a generator will be chosen over one without when all other amenities are the same. A seller in Lake City, Florida advertises a "15,000 watt automatic home generator! You’re never without power in bad weather." But Florida is not the only place where home sellers are profiting from standby generators. Evidence of higher resale values is apparent in real estate markets across the country. From Alabama to Indiana, Vermont to Illinois and Texas to California, home listings promote the benefits of standby generators. According to one manufacturer’s customer research, 99 percent of standby generator owners would invest in another one on their next home. Some homebuilders have noticed the trend and are being proactive. A large homebuilder ran a month-long promotion in Tampa offering $10,000 cash back or a free standby generator. Almost 300 customers participated, and 92 percent chose the generator. Their actions are wise when considering the benefits. "Homeowners who use [generators] have the potential for reduced insurance premiums and discounts and improved resale value of their home," says Don Zeman, home improvement expert and host of "Homefront" radio show.
(more) Generators Improve Resale Value of Homes Page 3 The numerous rewards that are a result of owning a generator include security and savings. Whether they are home or not, owners have confidence that an automatic standby generator will keep their property safe and mitigate damages. By preventing losses, reducing insurance premiums, and improving the resale value of a home, a generator is not only creating peace of mind but is an excellent investment, especially for those in areas prone to power outages.
Since 1959, Generac Power Systems has been a leading, innovative manufacturer and marketer of standby generators, automatic transfer switches, modular paralleling systems, and small engines for recreational vehicle, residential, commercial, telecommunications, and industrial applications. Generac’s standby power systems range in output from 3 to 9000 kilowatts. For more information on Generac or its products, visit www.generac.com.
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