Does A Tankless Water Heater Add Value To A Home? (Find Out Now!)
When it comes to home improvements, most people don’t really think of water heaters. I mean, we do when we need them repaired. But upgrades? Not quite. That’s why I was pretty shocked to hear that some people are switching to tankless water heaters to add value to their homes. How effective is this, though?
Though it’s not the most glamorous home upgrade you can get, adding a tankless water heater can add a substantial amount of value to your home. Studies also show that homes with tankless water heaters are more likely to sell faster at a higher price than their “tanked” counterparts.
There are a lot of home improvement projects that can be surprisingly beneficial to your home’s price tag. This is one of them, and we’re going to be explaining why soon enough.
How Much Value Can A Tankless Water Heater Add To Your Home?
People who want to “fix and flip” a home need to consider getting a tankless water heater for their homes. As far as home accessories go, it’s actually a fairly trendy and in-demand upgrade. A recent study shows that a tankless water heater can make your home sell for as much as 4 percent above the expected asking price.
So what does this mean? If you have a home that is valued at $100,000, you can expect a tankless water heater to boost the price up to $104,000. This means that you can literally make your money back by getting a tankless water heater for your home—and then some!
Are Tankless Water Systems In High Demand?
Yes. Studies show that homes that have them sell 43 days faster than those that do not have tankless water systems. This means that people are quite likely asking for them by name.
How Much Does It Cost To Install A Tankless Water System?
This is where you need to be choosy and figure out how much you can spend before your ROI goes down. The good news is that virtually any tankless system will cost less than the ROI you would get for a basic home. Most tankless water systems will cost between $1,175 and $3,350 to install.
On average, people will spend $2,254 to install a tankless water system. Considering that you have an ROI of 4 percent, this means that you’re going to get an ROI that’s at least 150 percent, assuming you have a home price that’s below the national average.
Why Are Tankless Water Systems So Popular?
So, it’s obvious that people don’t just randomly go into your home and compliment your tankless water system. You might be wondering why these are so popular. Truth be told, there are a lot of perks that come with this form of water heating system. These include:
- They save precious space. Water heater tanks are MASSIVE. If you have a home that’s small, having a tank is a good way to eat up precious space. Tankless systems take up less space, which means that you have more space for other stuff.
- Tankless water systems are also more energy-efficient. In a traditional water heater system, your system will store a bunch of water in a tank that’s constantly heated. This eats up energy regardless of whether you use the water. Tankless water systems heat water as you need it, making the use of electricity less mandatory. To be more specific, a typical tankless system is 22% more energy-efficient than a traditional system.
- You don’t run out of hot water. With tanked water heaters, you have a limited amount of hot water that you can use. This often means that you have to choose between a bath and a bunch of laundry. Tankless water heaters don’t run out of hot water because they’ll just keep heating water up faster.
- To a point, they are also status symbols. If you’re the type of person who likes to have pride in your home being eco-friendly, you’ll be happy to know that these water heaters are kind of a status symbol. Your inner hippie will thank you and so will your clique of cool friends who love helping the environment.
- In some cases, it could also act as a tax perk. Some areas have tax write-offs that allow you to get a cool tax benefit from installing energy-efficient upgrades to your home. This means that you might be able to get more money off from Uncle Sam. (Check with your accountant to find out of this applies to you!)
- Oh, and the energy-efficiency means that you’ll also save some money, too. Let’s be honest. It costs a lot of money to keep a water heater running. Any amount of money you can save is a good amount of money to save.
How Long Are Tankless Water Systems Supposed To Last?
Tankless water systems used to be pretty stigmatized due to their durability issues. When they first came out, it wasn’t unusual to hear of them dying or “frying out” within a matter of five to six years. However, things have changed drastically and durability is no longer the concern that it once was.
Assuming that you regularly maintain it, you should expect a tankless water system to last as long as 20 years. So don’t worry. Once you get a tankless water system, you should expect it to be a fixture in your home for years to come.
Is Getting A Tankless Water System Worth The Money?
Many homeowners feel a little leery of getting a tankless system simply due to the upfront costs associated with it. However, this is one of the very few projects that will pay off big time regardless of what your goal with your home is. If you want to raise the price of your home prior to a sale, a tankless system will do that pretty well.
Of course, you don’t have to be a house flipper to appreciate all that comes with a tankless water system. Everyone likes to have water that’s always warm. Everyone also happens to enjoy having lower bills month after month. So, don’t be afraid of trying to get a new water heater for your home. It’s a smart investment that will pay off every single day.
Why does installing a tankless water heater cost more than installing a traditional water heater?
The reason why tankless systems cost more to install is because of all the extras you may need to add in. You may need additional gas lines as well as upgrades to your plumbing system. Since there is more to add and upgrade in a tankless system, the price tag will be higher for both parts and labor. With that said, there are some cases where it won’t cost that much. If you already have all the fixtures, you’re good to go.
Can a single tankless water heater fill up a tub?
A tankless water heater can fill up a tub, but it’s important to realize that it may take a while. If you want instantly hot water, the smartest thing you can do (as a bath-taker) is to get two smaller tankless units to do the work for you. With that said, asking a professional water heater installer can help you figure out what the best solution is for your home.
Can tankless water heaters heat water during a power outage?
Though tankless water heaters are pretty rugged devices, they still have their limitations. One of them is that they rely on electricity. To get your water heated properly, your heater will need to have electricity. This means that a tankless system is pretty useless during a power outage.If you are not comfortable with cold water, the best thing you can do is have an auxiliary generator for your home. This way, you’ll be able to enjoy warm water regardless of the power problems your grid has.
Ossiana Tepfenhart is an expert writer, focusing on interior design and general home tips. Writing is her life, and it's what she does best. Her interests include art and real estate investments.
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