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Can Crawl Space Encapsulation Increase Resale Value?

February 26th, 2024 | 3 min read

By Alexis Dingeldein

Everyone wants the space they live in to be nice. Whether it’s a kitchen remodel, a fresh paint job, or a finished basement, there are always home improvements you could invest in. Besides the time you would have to spend improving your house, you must also consider the cost. Can you afford to upgrade your home? And if you ever had to move, would you recoup that investment cost in resale value?

South Central Services has insulated hundreds of homes with spray foam. One of the unique features of spray foam is its ability to pay for itself over time. Encapsulation is no different. If you chose to encapsulate your crawl space to lower your energy bills and improve your air quality, would you also see that money if you sell your home?

By the end of this article, you will understand:

  • How encapsulation affects home value
  • If encapsulation can increase resale value
  • If the increase in resale value will cover the cost of encapsulation
  • Whether or not you should encapsulate your crawl space

Crawl Space Encapsulation Is Like Finishing Your Basement.

Finishing the basement is a popular home improvement project. A finished basement adds to your conditioned living space and increases your usable square footage. Instead of using the basement as storage, families can use the space as a game room, spare bedroom, or whatever else they need.

A finished basement is a perk when buyers are looking for a home. The house is worth more with the finished basement because the basement is usable living space.

An encapsulated crawl space is similar to a finished basement. While the crawl space is not a living space, encapsulation makes the space clean and as inviting as can be. Encapsulation is also functional, protecting homes from mold and possible structural damage.

How Much Does Encapsulation Add To Home Value?

There’s no way to tell how much more your home will be worth by encapsulating your crawl space. That is the job of a home appraiser. However, you can be confident that encapsulation will increase the value of your home to some degree.

The functionality of an encapsulated crawl space makes your home more desirable to buyers.

An encapsulated crawl space with closed cell spray foam on the walls and a vapor barrier on the floor.

Encapsulation will also make your home more affordable to live in. While lowering your energy bills does not impact your resale value, it makes your home more valuable for you. In our experience, energy costs are cut by 20% to 40% after encapsulating crawl spaces.

Will An Increase In Resale Value Pay For Encapsulation?

There is no way to know how much encapsulation will add to your home value. In the same way, there’s no way to tell if the increase in home value can pay for the cost of encapsulation.

Encapsulation will begin to pay for itself as soon as your next billing period. However, it will take time for the energy savings to cover the encapsulation cost.

For other retrofit insulation projects like basement or attic insulation, the only way to recoup the investment is through energy bill savings over time. With encapsulation, there is the potential to recover some of the cost through selling your home.

Is Crawl Space Encapsulation Worth It For Me?

Crawl space encapsulation can increase resale value and provide energy savings. The longer you plan to stay in your current home, the more value you’ll get from encapsulating your crawl space.

If you encapsulate your crawl space and sell your home in less than a year, you will not make back your investment.

If you encapsulate your crawl space and stay in your home for another five years, months of lower energy bills can help to pay for the encapsulation cost.

The Bottom Line About The Value Of Crawl Space Encapsulation

Like many retrofit insulation projects, crawl space encapsulation can permanently lower energy costs for a home. Encapsulation also has the unique ability to provide recognizable value during home appraisals. By encapsulating your crawl space, you turn an otherwise musty area into a clean and accessible space.

You will only know how much resale value encapsulation adds once you appraise your home. However, for every billing period that you live in your home, your energy bills will be consistently lower. Encapsulation is more valuable the longer you stay in your home.

Now that you know how can increase resale value, your next step is to:

Alexis Dingeldein

Alexis has been fascinated by spray foam insulation since 2018. When she isn’t thinking about insulation, Alexis is geeking out over storytelling and spreadsheets.