March 22, 2011 9:43 am
By John Voket, RISMedia Columnist
RISMEDIA, March 22, 2011-I recently came across some interesting information regarding green homes from Jim Simcoe, a sustainability consultant, coach and speaker promoting green business practices. We often report on how to achieve greener homes, but Simcoe is coming up with data to answer the nagging question: can investing in green practices and outfitting really pay off?
Put simply, Simcoe says yes.
He says buyers will pay more for green properties provided the added value is more than the increased price. For example, if you can show a buyer that spending $10k more for a 'green' home will actually save them $250 per month in their total (mortgage + utilities) monthly bills, then they'll spend the extra $10k with you.
"We see this all the time," Simcoe says, "the key is figuring out the breakeven point between the increase in sales price-$10k in this example-and the total monthly expense." To best identify that matrix, Simcoe has developed a formula that calculates this number for consumers, which he provides among his services.
On the same subject, the latest Eco Pulse report generated by the Knoxville, Tenn.-based Shelton Group found nearly two-thirds of consumers would be willing to pay a 10% or higher premium for a home with a number of green features. Nine percent were willing to pay 30% more.
The green features chosen most often in the Shelton Group survey were:
-Renewable electric power generation systems such as solar, geothermal or wind (25%)
-Higher-efficiency appliances like those certified by Energy Star (25 %)
-Water-conserving features like low-flow showerheads or rainwater collection systems (21 %)
If you haven't gotten on the green bandwagon yet, maybe this is your year now that there is reliable data that investing in green features can pay dividends when it's time to sell your home.
For more information, visit www.jimsimcoe.com.
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