Do "Green Items" Increase Home Value?

I often read articles stating that solar panels or "green items" will increase your home value. What about wind mills and other form of "green" ideas. Here's my take on these types of things such as insulated walls, wind mills, solar panels and anything else that is considered "green."

Nothing and I mean nothing will increase home value unless the market is willing to pay for it.

You see, all of these studies that show that solar panels or wind mills will increase your home value by 3% or 5% are taken from some text book or a study in some other part of the country. Real estate is local and cannot be moved and there are lots of moving parts in a real estate transaction that is much more important in determining the value than "green" homes.

The appraiser must look at the most important data to determine market value and they must be able to find homes with similar items to compare. Until the MLS system offers line by line items for such improvements and there are enough homes in the market to use for comparable homes, "green homes" will never be given much value.

Here's the issue with using this type of material or any type of "green" items to build your home. First, there is not enough market acceptable of these types of specialized construction methods. They will usually cost you more money to install. When an appraiser goes looking for real comparable sales to support these improvements, there will not be enough data in the market to support an increase of price or an adjustment in most cases because of the sheer lack of data.

The real reason to install "green" items in the home is to save energy in the long run, not to increase your home value.

When an appraiser looks at all of the comparable sales in the area, let's say they find 15 similar homes in your area. And when I mean similar, this is in reference to location, lot size, square footage, bedroom count other important amenities that Appraiser and Realtors can study. By pure luck, one of the Realtors talks about the ICF walls or the solar panels and you are able to search and find this home in the area. What are the chances that the home will offer some sort of similar square footage, design and lot size? Let me help you with the answer, slim to none.

So, here are some solutions to this problem

Create an entire development of "green" homes and make sure it is larger enough to really make an impact in the community. And when I mean "green" I mean, ICF walls, solar panels on all of the roofs, wind turbines around the entire development and in everyone's yard, homes built to with the correct windows for passive and active collection of energy. This will allow Realtors and appraisers to look at homes from these types of developments and really determine if they will increase value or if there is any real impact and if the market will pay for these improvements.

Make sure every MLS system in the entire country is correctly identifying the "green" items and putting them in the MLS so that Realtors and Appraisers can use this data to determine if the market is willing to pay for these types of things.

Until this happens across the country or in your home town, there is a slim chance that green items will have a big impact in increasing your home value.

Would you like to learn more about buying, selling, and refinancing a home from a real estate appraiser. if so, go to http://increasehomevalue.org/

Original article

What Is the Correct Way to Make Green Homes Increase in Value?

Every once is a while I get to appraise some type of energy efficient home with built in solar panels, wind turbines, light bulbs, furnaces, and home construction. Most of the time, these types of items will bring you nothing in extra value to your home in the Northwest. Do you know why? There is a disconnect from the Realtor databases and a lack of data in the MLS databases, and a sheer lack of similar sales for these "green" items.

I understand that the market will consider these types of improvements positive. With my professional appraisal experience and after speaking to several Realtors that have listed or sold these types of properties, it is clear that is could take the home owner 8 to 20 years to get their money back out in the terms of energy savings.

In terms of home value, your home will be appraised like any other home. If the real estate appraiser can not prove that the market is willing to pay for these types of homes, the value will not increase, nor decrease. In these cases, green homes are trumped by the next best thing in the market, similar homes.

Here is one of the few ways I see green homes increasing in value. There must be an entire development that is significant is size that makes up an entire community of green homes. Let's say a developer put together a development that only offers green homes. One part of the land is used for both RV storage, but on top of each building there are solar panels. Around the entire perimeter of the 10 acres development, there were wind turbines. On the roofs of every home in the development, there will be more solar panels. All homes in the development are made from green products and energy efficient items. Do you get the idea? With a big enough development, hopefully, there will be at least one or two sales to support the value.

The cost of the initial development for this type of development may be 30% more than the cost of a regular built home. If the market is willing to buy into a development like this, they will pay more for homes like this. There benefits will be energy reduction, environmental reasons, and money savings. The negatives may be ugly wind turbines around the property and acceptance of solar panels located on everyone's home and the cost to maintain something like this.

But when it came time to appraise homes like this, there will developments that support this type of technology. There will be comparable sales to select and compare to the subject and an appraiser can clearly conclude what the market is will to pay for homes in this type of development and outside the development. In other words, the appraiser can prove it. That's how to make green homes increase in value.

Would you like to learn more about buying, selling, and refinancing a home from a real estate appraiser. if so, go to http://increasehomevalue.org/ or http://appraisalsbypage.com/

Original article

Marketing Energy Efficient Features and "Green" Attributes of a Home to Increase Its Market Value

How many times have you purchased a new home without reviewing a 12 month history of the utility bills for the home? If I were your agent, the answer would be "NEVER"! As a Certified EcoBroker. I have learned to market one of a homes most valuable features, its monthly expenses! In my opinion, many agents miss the mark on this issue. How many times has a new homeowner received the shock of their life in the form of an overwhelmingly high gas bill during the dead of winter or a sky high electric bill during the summer time when the air conditioner is running at its highest level?

It is very important for a prospective buyer to understand that the seller has taken the necessary precautions to guard against the highs and lows of a utility crisis. This could be a major selling point when buyers are making a decision between two very similar homes.

There are several ways that sellers can take advantage of energy efficient features to increase the value of their home, some of these items include:

1. Programmable Thermostat - lowers your heating and cooling expenses by 30-40% annually
2. Energy Efficient Appliances - decreases consumption of electricity, gas and water up to 50%
3. Energy Efficient Windows - decreases heating loss or gain and lowers annual heating costs up to 40%
4. Energy Star Certified products - homes tend to be 20-30% more efficient and can generate a federal tax incentive up to 25%
5. HERS index - A rating system for the Home Energy Rating System
6. Insulation with a greater 'R' value - could increase your heating savings by 20-30% monthly
7. Lighting - CFL's and LED's offer an average savings of $30 over the life of the bulb.
8. Site Design - including natural daylight, landscaping and shade trees as a factor on natural heating/cooling
9. Plumbing - low flow toilets, showers and faucet aerators
10.Indoor Air Quality - increased ventilation, low VOC paint, lead

If you'd like to get an edge on your competition, make sure you hire an agent who is well educated in these area's and can orchestrate a proper marketing approach to making your home stand out in a sea of similar homes. An agent with the designation of Certified EcoBroker is your best option but if you can't locate someone in your market, simply interview each agent by asking what features they would highlight to showcase your home's Energy Efficiency and 'Green' attributes.

In the Indianapolis real estate market, Andrea Vadas and The Homeland Team with Keller Williams Indy Metro NE are the experts in the subject of Green Real Estate. However, if you are not in that area but would still like to consult with them about how to make your home more attractive to environmentally conscious buyers, contact http://www.thehomelandgroup.com/ and they will find an agent in your area that is qualified in Green Real Estate or call 317-863-4323. Andrea Vadas is a 10+ year veteran in the Real Estate Industry having worked in such area's as Mortgage, Investing, Construction, Title, Appraisal, Home Warranty, and Brokerage Management. Read her weekly real estate blog at http://www.thehomelandgroup.com/

Original article

Green Mortgages Are On The Increase

Ireland has begun introducing it's first equity release mortgages which will allow homeowners to borrow money so that they can introduce new green technology into their homes. This retrofitting of their homes has recently been launched in February and will enable homeowners to save money and energy by installing these eco friendly technologies within their homes.

Some Irish banks are launching these schemes. This may come as a surprise to some people due to the fact that Ireland suffered badly in the economic meltdown but it shows that green retrofitting is beginning to become noticed in Ireland. It also points towards lenders taking green issues seriously and is wiling to spend money to eventually make it back.

Many property prices in Ireland are continuing to drop but the banks are recognising that if you spend money to save energy in your home then it will reinforce and perhaps increase your property's value. The logic behind the scheme is easily explained due to the spiralling costs of gas, oil and electricity on a monthly basis in the UK and Ireland. Heating your home has never been as expensive as it is today and prices seem to keep going up and up.

How does it work?

In Ireland, as long as you have enough equity in your home and the Sustainable Energy Authority of Ireland has approved your home suitable for a retrofit grant then you qualify; it is as simple as that. It is paid to those undertaking the improvements, this could be anything from extra insulation in your roof or your walls. It also covers a more efficient boiler being installed than the current one in your home. Solar panels heating systems, geothermal heat pumps or wood chip and pellet burners are also classed as being part of an eco retrofit.

In Ireland customers can borrow anything from 5,000 Euros up to a possible 90% of the value of your home. Repayments can be anything from five years up to a possible 30 years. The benefits of this product is that when you combine the retrofit grant from the Sustainable Energy Authority of Ireland with a green equity release loan the customer pays little upfront for the improvements to their home but they notice the savings on their energy bills immediately. However due to the frontloaded interest repayments you do have to make payments straight away to the bank.

In the UK there are also some mortgage lenders who are offering their clients "green mortgages".

Fiona Davies is sales director of http://www.ecofriendlyhomescompany.com/
She has worked in the last business for the last ten years.

Original article

What is the correct way to Make Green Homes increase in value?

Each time is a while I get to evaluate some type of energy energy efficient home with built in panels solar, wind, light bulbs, generating hot air and construction of houses. Most of the time, these types of articles will bring you nothing in added value to your home in the Northwest. Do you know why? There is a lag in the databases of the real estate agent and a lack of data in the databases of the MLS and a lack of pure similar sales for these "green" elements

I understand that the market will consider these types of positive improvements. With my experience of professional assessment and after talking to several real estate agents who have listed or sold these types of properties, it is clear that could take the owner 8 to 20 years to get their money back out in terms of energy savings.

In terms of value of the House, your votre maison home be be evaluated like any other House. If the real estate appraiser cannot prove that the market is willing to pay for these types of homes, the value does increase or decrease. In these cases, green homes are trumped by the best thing on the market, similar homes.

Here is a how little I see green houses increasing in value. There must be a full development is important has a size which is a whole community of green houses. Say that a developer to set up a development that only provides green homes. Part of the land is used for the storage of these two RV, but on top of each building, there are solar panels. Perimeter set the development to 10 acres, there was wind turbines. On the roofs of every house in the development, there will be more solar panels. All the houses of development are derived from green products and energy efficient elements. That you get the idea? With a large enough development, I hope, there will be at least one or two sales in support of the value.

The cost of the initial development for this type of development can be 30% more than the cost of regularly built the House. If the market is ready to buy in a development like that, they will pay more for houses like that. It benefits will be reduction of the energy savings and environmental reasons. Negatives can be ugly wind around the property and the acceptance of solar panels located on the home of each and the cost to maintain something like that.

But when it came time to appreciate the houses like that, there will be developments that support this type of technology. There will be comparable sales to select and compare the subject and an appraiser can clearly conclude that the market is will be to pay for the houses in this type of development and outside development. In other words, the evaluator can prove it. This is how to increase the value of green houses.

Would you like to learn more about the purchase, sale and a House of a real estate appraiser of refinancing. If so, go to http://increasehomevalue.org/ or http://appraisalsbypage.com/

article