31 Oct Energy-Efficient Homes Lure Buyers
You may have noticed that energy-efficiency ratings have started popping up in residential listings. That may be because of recent findings published by The Earth Advantage Institute, a non-profit group in Portland, OR, who found that certifications from Energy Star or LEED (Leadership in Energy and Environmental Design) boost sale prices by an average of 8%. The news is even better for existing construction: certifications add a premium of about 30% to the home.
But wait, there’s more! In Portland, OR, a recent review of residential listings showed that energy-efficient homes spent 18 days less time on the real estate market than comparable non-certified properties. That might help explain why banks have started picking up on the trend. They realize that a borrower who pays less to heat and power an energy-efficient home is better able to pay the mortgage, and therefore, presents less risk to the underwriting bank. Appraisal companies are becoming more attuned, too, introducing training programs that educate their field appraisers on what to look for and how to integrate their findings into valuations.
As the move toward energy-efficiency and sustainability continues, this may become more the rule than the exception. At the end of the day, it’s becoming clearer: energy-efficiency saves owners money and time.