Energy Efficient Homes , Green Home

by Amrith Thandra

Energy Efficient Homes , Green Home

Article by James Carlin

Green Curb Appeal: The Value of an Energy Efficient Home

I’m not sure about you, but we always like to get the bad news first and then move on to the good news. And the bad news is something that we already know far too well – selling your home in today’s real estate market is proving to be very difficult. Across the country, real estate sales have been sluggish and home values continue to struggle to find their equilibrium. While each market is different, average home prices have been mired in a decline since 2006, according to the widely followed Case-Shiller Index. With unemployment at 9.1% and more than three quarters (78%) of Americans saying the economy is on the wrong track, it’s not clear when this decline will reverse course.Yes, I know what you’re thinking – “get to the good news already!” The good news is that will all of this negative sentiment surrounding the U.S. housing market, there has been a glimmer of hope in the sales of energy efficient homes. New studies have revealed a correlation between the relative energy efficient of homes and it’s market value and time on market. In other words, homebuyers on average have reacted more favorable to “green” homes versus there less efficient peers.The Emergence of a Green PremiumIn a study covering existing and new houses sold from May 2010 through April of this year, the Earth Advantage Institute, a nonprofit group based in Portland, Ore., found that newly constructed homes with third-party certifications for sustainability and energy efficiency sold for 8% more on average than noncertified homes in the six-county Portland metropolitan area. Existing houses with certifications sold for 30% more. The Portland study was the fourth in an annual series conducted by Earth Advantage, each of which has shown price premiums for certified houses. It should be noted that the study analyzed “average” sales from the Portland-area MLS (Multiple Listing Service) Data without a more refined analysis of whether such homes were directly comparable. It is possible that the location of “green certified” homes in higher income neighborhoods had an influence on the data. That said, it’s clear that “green certified” homes command a premium.”Certified” houses were defined as those carrying ENERGY STAR, LEED for Homes designations or Earth Advantage home certifications. (LEED stands for Leadership in Energy and Environmental Design). Each organization has their own criteria and ratings scale, but essentially they seek to rate the efficiency and “eco-friendliness” of a home relative to today’s standard construction.So “green” homes command a price premium, but do they sell more quickly? A study conducted two years ago by the institute in Seattle and Portland found that homes marketed with energy-efficiency certifications appear to sell faster on average than those without. The study tried to come up with rough comparability in appraisal terms between certified and noncertified properties, and it found that in Portland, certified homes spent 18 days less time on the market after listing than noncertified counterparts. In both Portland and Seattle, researchers documented price premiums — 9.6% in Seattle, 4.2% in Portland.Unlike the age-old questions surrounding other home upgrades like a remodeled kitchen or bathroom, or new paint, the value and therefore the “premium,” garnered by more energy efficient homes is actually very quantifiable. Energy efficient upgrades, after all, are not subject to taste of the potential buyer, rather they lead to tangible savings in the form of lower energy bills – not to mention improved home comfort and air quality.So It Pays to Be Green, Now What?Alright, so how do you as a homeowner go about making your home more energy efficient? One way that many people like to approach the process is by having a professional home energy audit. After your home energy audit, you will receive personalized recommendations regarding improvements that will make your home “greener” and more appealing to buyers. Most energy auditors will then help you manage the improvements that were recommended to make your home more efficient.If you’re not quite ready for a home audit and you’d prefer to target specific home improvements, upgrading energy efficient appliances, water-savings showerheads and faucets and energy efficient light bulbs can have a big impact. If you need help on where to start, our company provides a complete range of tools to help you identify the right energy saving home upgrades and then take action to make them a reality. Our free online home energy assessment is a great place to start.While you can’t fix the soft economy and slumping housing market, you can set your home apart with a “green makeover.” Energy saving upgrades will not only save you money on your utility bills each month, but it just may get you a higher price when it comes time to sell. So what are you waiting for, start assembling your roadmap to a more energy efficient home today!