Dan,

A good point. That is where the communication by the agent comes in. Some people see the price tag and don't add the savings factor in.... With an Energy Efficient Mortgage (EEM) the home must be shown to save the buyer money. Not just save them money without factoring in the increased costs, but save them money AFTER the increased costs of a higher loan amount are factored in. Read more about Energy Efficient Mortgages on my website linked below.

New construction certified Energy Star homes are great, but not the only way to go. I am a big fan of retrofitting homes to be more energy efficient through a home energy audit and suggested upgrades. I have a section on my green page about what to look for in a home energy auditor. Again follow the link below.

Here is another great link regarding energy efficiency and homeowner perceptions. http://www.businesswire.com/portal/site/home/permalink/?ndmV…

"However, when asked how much they (homeowners) expect to save from projects such as adding insulation, caulking and air sealing their homes, nearly three-fourths underestimated their potential utility bill savings at 10 percent or less. The U.S. Department of Energy (DOE) lists the heating and cooling system as the largest user of energy in the average home, accounting for 43 percent of consumption, and estimates the average homeowner can save up to 30 percent on heating and cooling bills through proper insulation and air sealing techniques."

Although the survey was taken in 2008, I suspect perceptions haven't changed drastically. A good read for real estate agents, builders, home buyers and home sellers.

Create a Great Day!

Kelly Gidzinski
Keystone Property Connections, LLC

People will buy what makes economic sense. Until solar panels are cheaper to buy the average person will not pay for them. I love the idea of having solar panels. But for now, they cost to much to pay for themselves and give an economic payback. Perhaps in 5 years or so some new tech will come in that makes solar panels cost $5000 for the same output. When that happens people will buy them in droves.

If I bought a brand new house it would not be a wooden one. It would use quad lock ( or other competing mfrs) foam block with concrete poured in the middle. It gives a house with no air leaks except the windows and doors. It is much quieter. Uses a lot less energy to heat or cool. And best of all, it will not rot or be eaten by termites. I have read it costs about 5% more to build this way. But it would be so much nicer it would be worth it.

Generally speaking if you can show a buyer that they will SAVE $$$ every month by paying more for quality construction they will. But if it just costs more they will not. If energy costs will decrease by $100 a month and the house costs me $50 more I will choose that house over others. If my costs will decrease by $50 a month but the house costs me $100 more I will not.
Besides, it seems most houses we are told are green are a different color inside and out. <grins>

Christa you made a very good point and one that I failed to address.

Buying a green home doesn't necessarily mean spending $30,000 on solar panels. It can mean as you said a new construction Energy Star certified home where added costs can be small but well worth the utility bill savings and it can also mean an existing home that has had an energy audit done along with the recommended energy saving improvements. I always recommend to people thinking about solar panels to have an energy audit done first. There is no sense in paying for solar panels if your savings are wasted through inefficiency in your home. The payback on solar is far greater if you also address energy efficiency in your home.

Kelly Gidzinski
Keystone Property Connections, LLC

Contrary to popular belief, a green home may not be that much more expensive than a traditionally built one. Many of the green builders I have talked with can vouch that they are only running between 2% and 10% more. And it's important to consider that a well built, energy-efficient home will likely SAVE you money in the long run. Using two energy audits conducted by certified PA Home Energy Service Providers, I compared an ENERGY STAR home that I have listed with a traditional brick ranch that is common in our area. The saving were amazing. The ENERGY STAR home saved almost $264 a month on utilities vs the traditional home. Over 10 years it added up to over $30K, not to mention the big environmental savings. Buying a green home does not mean spending $30K on solar panels. You can start much smaller and still get a home that is better for your wallet, health and environment.

Whether or not a "green" home will sell in this market hinges on the marketing and communications skills of the agent. The term "green" can mean a lot of different things, but what really matters is that the agent effectively market and communicate the savings and other benefits the new owner's of these homes will enjoy. Simply saying the home is energy efficient, energy star or green doesn't cut it. If the home is certified under a program such as LEED, Energy Star or the NAHB National Green Building Program, the agent should make the appropriate documentation available in the multiple listing service and other marketing resources. The projected or actual (if the home is not newly renovated or new construction) cost savings MUST be communicated effectively to any potential buyers.

Unfortunately there is a lot of greenwashing going on out there and agents who don't know how to effectively market these types of homes. This is an expanding market and field of real estate and we will continue to experience growing pains. Anyone looking to sell a home with green features or that is green certified should contract with an agent who has experience and education in that niche. There are two nationally recognized real estate professional certification programs available. They are EcoBroker and the NAR Green designation.

I took the classes to obtain the EcoSociate certification through EcoBroker when they first obtained continuing education approval in Pennsylvania. I can personally vouch for the value and education EcoBroker has given me. However, a home seller or buyer shouldn't rely just on a certification to prove competence in a specialty area. Careful review of that agent's experience and marketing techniques is crucial.

Kelly Gidzinski
Keystone Property Connections, LLC
Pennsylvania's 1st Green and Energy Efficiency Focused Real Estate Brokerage

Not so well right now. In order to sell green in this market you need a educated buyer. Most buyers won't pay more just for green. It is one of my jobs to educate a buyer as to how much they will save in the long run. When they realize they could save as much as a third on monthly utilities in an energy efficient home, they're more likely to take a closer look. I predict green development will enjoy a bright future as the economy improves.

I have just the solution for you. Dewey Homes are making a huge effort to make Green living attainable. They can do a LEED BASE certified home for those who have the money to spend, but also offer green affordability in all their homes. Dewey's base home models are all Energy Star Certified. What does this mean:

1. They meet strict guidelines for energy efficiency set by the US Environmental Protection Agency. Their homes are at least 20% more energy efficient than standard homes.

2. Their homes go through a rigorous 16-point insulation inspection by an independent Home Energy Rater to ensure that your home is properly insulated to provide maximum efficiency. R-13 Wall Insulation and R-38 Roof.

3. Tight Construction - Sealed with caulks, foams, weather stripping, gaskets, and door sweeps to reduce holes and cracks in the home's envelope.

4. Sized, Sealed and Insulated Ducts - Duct systems are independently tested to ensure peak efficiency. Properly sized, sealed, and insulted ducts can increase heating and cooling efficiency by 20%. Lower bills.

5. Energy Star Qualified Windows - Low E glass.

Oakcrest Community in Valley Township is open 7 days a week 12 - 6pm. Stop by or bring clients to see our green model and learn more about our community. 610-384-1972

I hope this helps, Ruth.