Buyers are speaking, are sellers listening?

Buyers are speaking, are sellers listening?

Recently I did a consultation with a real estate client about what they should do to improve their home so that a few years from now when they sell, they can maximize their equity.  The subject often goes to the fact that people do upgrades just to sell and they could actually be enjoying the upgrades while they live there.  I happen to agree that they should enjoy their improvements themselves while they live there, but taking that a step further, to environmentally friendly upgrades and improvements this gets to be an easier answer, don't you think?

When deciding which new furnace to put in would you chose a 80% or 90%  efficient furnace?  What is the cost difference, a few hundred dollars?  It sounds like a no brainer, right?  The future costs of running the furnace and air conditioner are escalating to the point that the more efficient unit will start saving you money NOW...and often you get rebates for installing them.

But do buyers really look to that to make a decision on a house to buy?  The NAR 2008 Profile of Home Buyers and Sellers gives you the answer.  When asked, buyers stated that 43% feel it is VERY IMPORTANT to consider heating and cooling costs when buying a home.  26% feel it is important to have energy efficient appliances.  Sellers may not think buyers actually think that far, but more and more they do because it affects their pocketbook.  This economic downturn in my opinion has taught us to be concerned about where our money goes and think ahead.

I know my buyers these days are asking the hard questions about the home and how much the utility bills are.  When showing a buyer recently, we saw about 7 homes on a very hot California afternoon.  One home (the one they put an offer on later), was cool when we walked through the door with no air conditioning on.  It had new doors and windows and it turns out R30 upgraded insulation in the attic.  We could FEEL the difference.  What did that do to their decision, well first off it was a stark and dramatic comparison to all the other homes and the money they would have to spend on them to bring them up to this level, second it actually told them that the owner of this home had taken care to make it nice and keep it nice for themselves.  It made a difference to their feeling of confidence about what they were buying.  I couldn't make this up, it actually unfolded in their thought process and decision making.

So, my advice about making energy efficient improvements, like new windows and doors, added insulation, and furnace and air conditioning units is ABSOLUTELY, it will save you money now and possibly be a determining factor for a buyer when you go to sell later on. 

 DRE # 615420
LGLS CP and GREEN Realtor, EcoBroker...thoughts from the field.