Do You Think a Green Property or a Property that has the Potential to Go Green is More Valuable?

Asked by Long Island Real Estate, New York Sun Jan 25, 2009

Solar Energy and Real Estate Value in America Going Green:

Technology in the solar energy industry has significantly advanced over the years to the efficiency and quality of collectors manufactured today to energy produced. In addition to the solar technology, with state, federal, and utility incentives, it makes sense for owners to residential and commercial property structures to invest in solar energy. The pay back return on the solar investment can be as little as four years, that’s a 25% return on the investment, guaranteed, at least for solar thermal products. Many of the warranties on these solar products are from ten to twenty five years with a lifespan on the solar systems over twenty five years in both photovoltaic (electricity production) and thermal (production in domestic hot water, space heat and air conditioning).

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Yvonne Gooldy, , 46307
Tue Jul 28, 2009
There are different shades of "green!" The value of any property lies in the value the market perceives it to have. To explain, there are different green buyers out there, that is, if the house efficiently operates and does not waste or cost more to light, heat or cool, for some that is good enough. To this there are varying degrees of being "green". Are there energy efficient appliances, or what is the e-rating of the windows installed?
Then there is the buyer who is environmentally driven in their opinion of whether a house is truly green. They would prefer that it is cost effective and environmentally responsible from the way the construction site was handled to the workmanship and choice of materials. One neighborhood touted as the nations first NAHB (National Association of Home Builders), green certified neighborhood goes so far as to be "recognized for its overall design and for its efforts to protect environmentally sensitive areas, preserve existing vegetation and use low-impact development stormwater management techniques", some buyers consider this as living truly green, including the neighborhood they live in!! Others may not, it depends on how green they want to go.
More valuable, absolutely, as buyers understand that going green in lifestyle extends to the home they purchase.
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Christa Ross, Agent, Pittsburgh, PA
Thu Jul 23, 2009
When determining value it is important to remember than a green home has different types of value. If you are speaking of energy-efficiency then they answer is absolutely yes. A home that is already efficient or a home that can be made efficient will pay for any increase in price over the first few years and then continue to save a homeowner hundreds of dollars a year for many years to come. Many states and the federal government are offering incentives to have existing homes improved and new homes built to higher standards. It is important that buyers are made to realize that the true cost of living in a home is not just the mortgage payment but also the monthly utility costs. It’s a fact that finally seems to be sinking in for buyers.

With green homes however there is another level to value based on factors like less drafty homes, fewer chemicals in the air, using recycled materials and buying a home that has less of a footprint on the earth. These are a bit harder to put a monetary value on. While there may not be a financial repayment, more and more buyers are willing to put their money where their mouth is to “do the right thing.”
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Long Island…, , New York
Sun Jan 25, 2009
More and more local MLS marketing services across America are introducing and incorporating a Green section to the listings of residential and commercial properties. These MLS agencies are not including this Green section to the listings to promote Green or solar energy but to offer a description to a property with green attributes because green attributes adds value to the property; value to the property that cannot be assessed by local government for property tax purposes.

One of the green attributes that add value is the R factor to the structure, including windows; high efficiency boilers and furnaces is another valuable attribute. When it comes to solar, the location and direction a structure faces is another attribute; pitched roofs that face south are more valuable than roofs that face east, west, or north; flat roofs make no difference in value relative to sunshine exposure. Sun obstructions are another factor, roofs with shading from trees or other structures are less desirable/valuable than roofs that receive sunshine from sunup to sundown.

In real estate investment acquisition and sale green factors are relevant to the properties value, without doubt. As each day passes with sunrises and sunsets America is more aware to the difference in the value between a green property and a property that is not green. Properties with potential to go green are more valuable than properties that cannot. Green is an excellent investment, not only for the environment, but for the monetary return on the investment.
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