The Importance of Water Heater Efficiency in Home Resale Value

When it comes to buying or selling a home, there are many factors to consider in determining the overall value of the property. One important consideration that is often overlooked is the efficiency of the home’s water heater. Not only does a high-efficiency water heater save homeowners money on utility bills, but it can also increase the resale value of their home. In this article, we will explore the relationship between water heater efficiency and home resale value.

Understanding Water Heater Efficiency

Water heater efficiency refers to the amount of energy that is converted into heat and used to warm up water. A higher efficiency rating means that more energy is being used for heating and less is being lost through the pipes or surrounding air.

The two most common types of water heaters are tankless and storage tank models. Tankless water heaters are more energy-efficient than tank models because they only heat water on demand, whereas a storage tank model constantly heats the water.

The efficiency of a water heater can also be determined by its fuel source. Gas water heaters are typically more efficient than electric ones because gas burns more efficiently.

Overall, the higher the efficiency rating, the less energy that is wasted and the more money homeowners can save on their utility bills.

Benefits of a High-Efficiency Water Heater

There are several benefits of upgrading to a high-efficiency water heater, including:

  • Cost savings on utility bills: Since a high-efficiency water heater uses less energy to heat water, homeowners can save a significant amount of money on their monthly utility bills.

  • Longer lifespan: High-efficiency models are typically designed to last longer than traditional water heaters, which can reduce the need for frequent replacements.

  • Improved performance: High-efficiency water heaters are designed to provide hot water more quickly and efficiently, which can be especially beneficial for larger households.

The Relationship Between Water Heater Efficiency and Home Resale Value

A high-efficiency water heater is not only an investment in energy savings, but it can also add value to a home. Here are some ways that a high-efficiency water heater can increase the resale value of a property:

  • Attractive to homebuyers: A new, high-efficiency water heater is an attractive feature to potential homebuyers as it can save them valuable money on their utility bills in the long run.

  • Improved home energy efficiency: A high-efficiency water heater is just one component of an energy-efficient home. Homebuyers are increasingly interested in properties that are designed to be environmentally friendly and sustainable. A high-efficiency water heater can demonstrate a homeowner’s commitment to energy efficiency.

  • An important factor in home inspections: Home inspectors regularly check the efficiency and age of the home’s water heater during an inspection. A newer and more efficient water heater is one less thing homebuyers have to worry about, which can make a home more appealing and attractive to prospective buyers.


Overall, upgrading to a high-efficiency water heater can have a positive impact on both monthly utility bills and the resale value of a home. By reducing energy waste and demonstrating a commitment to sustainability, a more efficient water heater can make a home more appealing to potential buyers. Homeowners looking to sell their property in the near future may want to consider upgrading their water heater to take advantage of these benefits.

Scroll to Top