"Green' is just another word. What features does the house have and what are they worth?
In a depressed market where features as significant a swimming pools tend to get 'bundled' in terms of the overall value of a property, there would have to be some pretty serious hardware to make much of a dent in the overall price for me. Though green features save money, make sense, and may make the home sell quicker, I think that it's ultimately just a case of so many new windows, etc. in many peoples minds.
In the SF Bay Area, most buyers are NOT willing to pay more for â€˜greenâ€™ â€“ although everyone is enamored by the buzzwords and the concept, green is usually much more money and many buyers are not forward-thinking enough to run the calcs to see if energy savings will offset additional upfront costs. It also means a commitment to buy and stay for longer periods of time to actualize savings â€“ many donâ€™t want to make that commitment.
Products ranging from door weather seals to energy efficient dual-pane windows, insulation to more efficient furnaces, ENERGY STAR rated appliances to low flow toilets and, for those wanting to reduce reliance on the power grid, solar panels or windmills â€¦ can be VERY expensive.
Saving energy is a worthwhile goal and itâ€™s certainly time to become less dependant on offshore fuel suppliers. However, at least for the near future, the price of â€˜greenâ€™ tends to make our buyers â€¦ blue.
The short answer appears to be yes, they sell for more and also sell faster - if they have s third party certification (LEEDS and others).
I enjoyed this question.
ERA Buy America Real Estate Services
I really appreciate Scottâ€™s response. Itâ€™s good to hear from those working with energy efficient homes. The big-ticket items such as photovoltaics that seem to get the most attention from the media really are some of the last things that should be considered, especially when retrofitting an existing home. The basics, such as properly installed high-value insulation, duct sealing, envelope enhancements, and energy efficient appliances and systems can be incredibly cost efficient and produce a relatively fast ROI. When coupled with green features such as high-performing water features such as water-circulation pumps, high-efficiency toilets and showerheads, any home can be made far more sustainable than the majority of homes out there. The real trick is translating that sustainability into property value. I look forward (hopefully in the near future) to seeing more data on home sales for homes with designations such as the ENERGY STAR Homes or Green Point Rating. There are a handful of isolated studies that have been done that do show a slightly higher sales price for designated homes, but much more information needs to be collected to get a national perspective on the value of green rating systems.
Iâ€™d like to ask Scott if he is seeing a premium on the ENERGY STAR homes in Missouri? Or at the very least, are those homes selling at a faster clip than your standard new construction models?
We hear that people recycle less than 10% or what they could.
We see the garbage barges leaving New York on a daily basis and we hear about the GARBAGE TIDE CYCLONE in the Pacific Ocean that is 1500 miles in diameter!
It seems that the only people who care about GREEN are the people who are making money off of it.
I would say that that association is a little hypocritic and distastefull.
An evidence of this would be the number of Tankless Water Heaters that Lowe's and Home Depot sells as opposed to the Old Fashioned kind.
It is going to take many years until the average American buys into GREEN; they've been lied to too many times, and they don't like the Government shoving things down their throats.
List Buy Save
Owner at Excellence Real Estate
However, if you have two fairly equivalent homes in terms of price and amenities, and one is green, I believe a preponderance of buyers would take the green home, all things being equal. So, being green in my mind is one more attribute to differentiate yourself from the competition when it is time to sell your home.
I will check back to see what others have to say. Great question.
ERA Buy America Real Estate Services