Can Earthquake Retrofitting Increase Home Value?
Did you know we expect around 16 major earthquakes every year? That’s a lot of shaking! Some people choose to live with the risk, while others decide to do something about it through earthquake retrofitting.
Earthquake retrofitting is strengthening a building to better withstand seismic activity or repair damage that has already occurred. You can do it on residential and commercial buildings, and it is often a requirement by building codes in areas of high seismic risk.
5 Benefits of Earthquake Retrofitting
When investing in any home improvement project, it’s essential to consider the return on investment (ROI).
Most homeowners who complete earthquake retrofitting realize high ROIs, making it one of the most ingenious home improvements you can make. It answers the question, “can earthquake retrofitting increase home value?”
Here are five benefits of earthquake retrofitting that impact your home value:
1. Increased Safety
The last thing you want is for your family to be in danger during an earthquake. By retrofitting your home, you can rest knowing your home is much better equipped to withstand seismic activity.
Some upgrades that can improve your home's safety include bolting the house to its foundation, adding bracing to your crawl space or attic, and reinforcing weak areas of the structure.
You should consult a professional to help you identify areas of your home that need attention.
2. Improved Resale Value
Most homebuyers are often willing to pay more for an earthquake-proofed home. They know they’re getting a safer home and less likely to sustain damage during an earthquake.
An increase in resale value means you’ll recoup a large portion of the money you invested in retrofitting, making it a wise investment for any homeowner.
It's important to note the ROI will depend on the location of your home. If you live in an area with a high seismic risk, you can expect a higher ROI than in an area with little to no risk.
3. Lower Homeowners Insurance Rates
Most insurance companies offer discounts to homeowners who have earthquake retrofitting done on their homes. That’s because retrofitting can reduce the damage a home sustains during an earthquake. It means the insurance company will have to pay out less in claims.
The amount you’ll save on your insurance premium will depend on the insurance company and the retrofitting work.
When negotiating with your insurance company, ask about any available discounts.
4. Ability to Remain in Your Home After an Earthquake
If your home sustains damage during an earthquake, retrofitting can often mean the difference between staying in your home or displacement.
If the damage is minor, you may only need cosmetic repairs that are much less expensive and disruptive than if your home sustained significant damage. By remaining in your home, you avoid the costs of relocating and can get your life back to normal quicker.
5. Easier to Get a Home Loan
If you plan on selling your home or taking out a home equity loan in the future, retrofitting can make it easier to qualify. That’s because many lenders view earthquake-resistant homes as lower risk.
As a result, they’re often willing to offer loans with better terms and lower interest rates. If you live in an area with a high seismic risk, retrofitting can often be a requirement to qualify for a loan.
When weighing the cost of retrofitting, it’s essential to consider the many financial benefits in addition to your family's safety.
4 Types of Earthquake Retrofits that Can Increase Home Value
The dilemma for most homeowners is they don’t know where to start when it comes to earthquake retrofitting. What type of work needs to be done to make their home safer?
Here are four of the most crucial earthquake retrofits that can have the most significant impact on your home’s safety and value:
1. Bolting the House to Its Foundation
The retrofit involves attaching the house to the foundation with steel plates and bolts. The steel plates and bolts create a much stronger connection that is less likely to fail during an earthquake.
The upgrade is one of the essential earthquake safety measures.
It’s important to note that not all homes are potential fits for bolting. If your home is on a slab foundation, likely, you can’t bolt it. Consult a professional to see if your home is a good candidate for bolting.
2. Adding Bracing in the Crawl Space or Attic
Bracing can help prevent the walls from collapsing during an earthquake. It involves attaching horizontal and vertical wood or metal braces to the studs in the walls.
The number of braces you need will depend on the size of your home. A professional can help you determine the props you need and where to place them. Also, the type of braces you use will depend on the type of foundation your home is on.
3. Installing a Gas Shut-off Valve
If you have natural gas in your home, installing a gas shut-off valve is essential. The valve automatically shuts off the gas if there is an earthquake. It is a simple upgrade that can help prevent fires.
Most people install the gas shut-off valve near the meter. You can also install it near natural gas appliances, such as a stove or water heater.
The best time to install a gas shut-off valve is when you have other work done on your gas lines, such as upgrading the plumbing.
4. Reinforce Your Chimney
If your home has a chimney, it’s important to anchor it to the roof. The anchor can help prevent the vent from toppling over during an earthquake.
There are several ways to anchor a chimney. The most common is to attach it with stainless steel cables or to bolt it to the house's framing.
The method you use will depend on the type of chimney you have. A professional can help you determine the best way to anchor your chimney.
How Much Does Earthquake Retrofitting Cost?
The cost of earthquake retrofitting will depend on the type of work. Bolting a home to its foundation can cost between $3,000 and $7,000. Adding braces in the attic or crawl space can cost between $500 and $2,000.
Installing a gas shut-off valve typically costs between $100 and $200, and anchoring a chimney can cost between $500 and $1,000.
You can get quotations for the work from different contractors to get an idea of the cost. Also, many cities offer incentives for homeowners who retrofit their homes. The incentives can help offset the cost of the work.
Before doing any work, you must check with your city or county to see if you need to meet any requirements or get permits. Also, you should schedule an inspection to help you assess the work that needs to be done and get an estimate of the cost.
Schedule Earthquake Retrofitting Today
Now that the question "can earthquake retrofitting increase home value?" has been answered, it's time to schedule the work.
Retrofitting is a critical step if you live in an area prone to earthquakes. Not only can it make your home safer, but it can also increase its value.
A professional can assess your home and determine what retrofit ideas work. They can also help you find the right products and materials.
Don't wait until after an earthquake to take action. Schedule earthquake retrofitting today. Contact our team at The Sterling Watson to learn more about earthquake retrofitting and how it can help increase your home value.
FAQs
Still not sure if earthquake retrofitting is right for you or your home? Here are answers to some common questions about earthquake retrofitting.
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The answer to this question is a bit complicated and depends on a number of factors. In general, though, seismic retrofitting is not tax deductible. The reason for this is that the costs of retrofitting are typically considered to be capital improvements, which are not deductible.
There are, however, some exceptions to this rule. If the retrofitting is done in order to comply with a new law or regulation, then the costs may be deductible. Additionally, if the retrofitting is done in order to repair damage that has already been caused by an earthquake, then the costs may also be deductible.
Ultimately, whether or not the costs of seismic retrofitting are tax deductible depends on the specific circumstances. If you have any questions about this, you should speak to a tax professional.
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There are many reasons why seismic retrofitting is so important. It is especially important in areas that are prone to earthquakes, such as California. One of the most important is that it can help to prevent collapse during an earthquake. Collapse is one of the leading causes of death and injury during earthquakes, so anything that can be done to prevent it is vital. Seismic retrofitting can also help to minimize damage to a building, even if it doesn’t prevent collapse. This can be important for both safety and financial reasons.