Is Real Estate Going Green?

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A recent study has found that some home buyers are willing to pay more for a solar energy home – a home that is powered, in part by solar energy. According to “Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes,” buyers often pay up to $15,000 for a standard 3.75 kW photovoltaic energy system on a home.

Does this mean real estate is going green?

In some parts of the country, renewable energy, green energy, and clean energy have become more and more popular for home buyers.

For those sellers who’ve made energy efficient improvements to their home, buyers are paying an average of $47,500 more for a home. Improvements include solar panels, dual-pane windows, energy-efficient appliances, as well as certifications from environmental organizations such as LEEDS.

Going green isn’t just for places like Seattle, WA or Portland, OR. In a 2014 Redfin study, some of the neighborhoods with the highest percentage of green homes were in places like Atlanta, GA; Austin, TX; and Raleigh, NC.

Green mortgages are even available to help assist in the cost of making a home more energy efficient. Rules and restrictions apply and vary between FHA, VA, and conventional loans, for owners or buyers looking to be greener – and save on energy costs – a green mortgage could be an option.

Sellers who make home improvements, whether in order to sell or with an eye for selling in a few years, may do well to consider making your home more energy efficient. Not only will you save on your own energy costs and possibly become eligible for tax credits or deductions (speak to a tax professional for more information), you may also fetch a much higher price for your home when you sell it.

The question you have to ask yourself is this: are you green or are you willing to go green?

Comments

  1. It’s very intriguing to see the markedly increased interest in green attitudes across consumer industries as prominent as real estate. Very interesting analysis, thanks for sharing!

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