Many things are happening at the intersection of residential energy efficiency and real estate. Stakeholders from several sectors — including the energy efficiency and real estate industries — are taking notice and researching the growing number of high-performing homes and their value in the marketplace.
The High-Performing Home Premium
This paper outlines actions high-performing home professionals can take to unlock the value of these special homes in the real estate market using data, collaboration, and communication.
Elevate Energy partnered with an appraiser on this analysis to find evidence of a premium for high-performing homes and assess the visibility of high-performing home verifications and features in local Multiple Listing Services in four Midwestern metropolitan areas.
A 2017 study performed by a team of appraisers found that the average price premium for a Pearl-certified home was more than 5 percent when the certification was marketed as Pearl-certified.
The Institute for Market Transformation and the District of Columbia’s Department of Energy and Environment found that high-performance homes marketed with green features sell with an average premium of 3.46 percent compared to homes without green features.
A 2018 appraiser-led study in California found that homes with a green label have, on average, a selling price 2.19 percent higher than similar homes without a green label or green features. With the average median sales price of Bay Area homes at $856,200, that 2.19 percent translates to $18,751 in additional value to the homeowner.
Demand for High-Performing Homes
Eco-friendly home features have broad appeal among consumers and can play a valuable role in real estate marketing. In fact, 69 percent of respondents said that promoting energy efficiency in their listings was valuable.
In 2012, the Consumers Union released the results of a survey done jointly with the Building Codes Assistance Project. The responses made it clear that an overwhelming percentage of those surveyed placed a high value on strong building codes.
Over 70 percent of households report that energy efficiency is important, but only 35 percent are satisfied with their current home’s performance.
Solar and Real Estate
This study from Lawrence Berkeley National Laboratory shows that home buyers across the country have been willing to pay a premium for a home with a homeowner-owned solar array.
The Colorado Energy Office and the Colorado Chapter of the Appraisal Institute support the conclusions that PV systems typically increase market value and nearly always decrease the time a home is on the market.
This study from Berkeley National Laboratory quantifies the value of rooftop PV on homes that sold across eight states and 15 years.
From Our Stakeholders
This paper argues that the key to ensuring that energy efficiency upgrades are truly visible at the time of sale is to ensure that real estate professionals are actively and enthusiastically communicating the benefits of energy efficiency to potential buyers.
The State and Local Energy Efficiency Action Network’s guide is designed to help state and local policymakers take advantage of new policy developments to launch or accelerate residential energy efficiency programs.
Energy eCompliance is a tool within connectMLS (the Midwest real estate multiple listing service) that lets real estate agents automatically populate utility costs into a home’s listing. This allows homebuyers to easily understand the true cost of homeownership before purchasing a home!
A Day in the Life of a Solar System
Air Sealing and Insulation
Blower Door and Infrared Camera
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