Homebuyers are not only increasingly interested in high-performance homes, but are also willing to pay more for them, according to a study by The Institute for Market Transformation and the District of Columbia’s Department of Energy and Environment.
High-performance homes are homes marketed with green features, such as a solar photovoltaic array or LEED certification. Through a paring analysis of a total dataset of 64 homes had sales prices ranging from $265,000-$1,415,000 in the D.C. market, the IMT found that such homes sell for a 3.46% premium on average compared to those without green features.
“With American households spending around $230 billion each
year on energy, the real estate market is beginning to recognize the true value
of high-performance homes,” said Cliff Majersik, IMT Executive Director, in a
In addition to smaller bills in energy costs, homeowners of energy-efficient homes are 32 percent less likely to default on their mortgages, according to the report.
“This study further emphasizes the value of high-performance homes and showcases that home sellers, realtors, and appraisers who are not factoring in energy efficiency when selling a home are leaving money on the table,” said Majersik. “This is important not just in the District of Columbia, but across the United States.”
To enhance marketing efforts of high-performance homes, the market is
calling on real estate professionals with knowledge of green building practices
to fully explore the value of the green homes.