Sale of a Green Home: What a Green Transaction Might Look Like
Mr. and Mrs. John Q Smith have just rehabilitated an 1800's one and a half story New Englander. The home has 1200 square feet of finished living area. The home had horse hair and newspaper insulation in the walls which were covered with lead paint, lead glass windows with rotting sills, asbestos insulation in the attic, and asbestos wrapped pipes. They did things properly. Upon the advice of their Certified Green Real Estate Agent, they hired professional contractors to come in and remove the asbestos insulation and lead paint. They contacted their local utility company and requested information on what the company offered for plumbing, heating, electrical, biomass, wood heat, geothermal, appliance, solar or wind installation rebates. They checked out www.energystar.gov for their current available State Rebates, and they checked the IRS website for available Energy Tax Credits. And then they went to their local Planning Board to see if there were any existing Property Tax Exemptions in place for solar, wind and central wood energy installations. Based on the information they gathered, they created a list of home improvements that would net them the most money back for their investment.
They installed moisture and mold resistant walls. They painted those walls with low V.O.C. paint. They installed bamboo flooring in the majority of the floors, and tile on floors that faced the south side of the home. They had low E glass windows with interior shades for the summer. On their roof, they had photovoltaic cells installed with a collector for generating electricity. They had a tankless water heater installed under each of the sinks in the home. They had low-flow toilets and showerheads put in place. CFL light bulbs were installed in their EnergyStar® certified light fixtures. They purchased EnergyStar® Certified appliances and opted for blown in insulation. They even installed an air exchange unit for cleaning their indoor air. Last, they invested in landscaping by placing deciduous trees on the southern and eastern sides of the home, and local, natural, stones were placed in such a way as to divert water away from the home.
When all was completed, they called in an Energy Rater who was certified with RESNET. All of this they did, as recommended by the Green Professional Real Estate Agent they had been in consultation with from the beginning.
Now came the time to sell the home. They'd had five good years in this home but now, for whatever reason, they needed to move.
They called their favorite agent to help them market the home. Fortunately, they were able to get the home EnergyStar® Certified during those five years. They even managed to get an Indoor Air Package certification on the home, as well.
So, what did their agent do?
Well, that's where I keep some trade secrets. There are special sites for selling this green home. My advice for you, if you want to know more, is to talk to your local Certified Green Real Estate Agent. Appraisers are beginning to take courses on valuing homes with energy efficient amenities, but it is slow going. Your agent will lobby for you and guide you.
I would also recommend you read this article by fellow EcoBroker®, Andrew Cepeda. He tells the story from the Buyer's viewpoint. Remember, Greener times require Greener agents.
Frances Sanderson, Franklin, NH REALTOR®, Certified EcoBroker®
EcoBroker Certified® real estate agents are licensed real estate agents who receive additional training on energy and environmental issues and can give you a better understanding of energy opportunities and environmental concern as they relate to your real estate decisions and transactions. Ecobrokers help clients market properties with green features, save money, and live comfortably through energy efficiency and environmentally-sensitive choices.
When working with an Ecobroker, you get a triple advantage:
Energy: reducing the amount of energy used and taking advantage of renewable and alternative energy sources when available.
Environment: understanding how the products and services you use impact local and global environments positively or negatively and encourage more sustainable choices
Green Marketing: effectively marketing your property to appeal to those interested in living green.
Joe and Suzy Homemaker decided to get married and buy a new home. When they thought about using a real estate agent, they wanted someone who could help them find a home where they could live healthy and comfortably, to live modern yet not be too expensive. They wanted an agent who could help them live green. They decided to hire an Ecobroker to help them buy a home and make it energy efficient. The Ecobroker immediately set them up with a green mortgage broker who pre-qualified them for a green loan to help finance the green improvements. After finding just the right home, with the help of their Ecobroker, Joe and Suzy got an energy rating on the home to determine its efficiency. The Ecobroker explained the results of the inspection and helped them choose the most cost effective areas to improve. When it came time for the appraiser to look at the house, that Ecobroker was there, showing the appraiser the green improvements that would be made to the home and the appraiser worked a future cost value into the appraisal, which increased the appraisal value an extra $5,000! Joe and Suzy were so excited to close so they could begin working on their new green home. After the paperless closing, the Ecobroker really started his work – coordinating the work to be done with contractors who used efficient and sustainable products like energy efficient windows, HVAC systems, appliances, low VOC (volatile organic compound) and chemically free paints, recycled glass countertops, bamboo flooring, low flow toilets, and plenty of insulation. Once all the work was done, the home was rated again, and the Ecobroker used this rating to qualify the home as an Energy Star home and helped Joe and Suzy collect all the rebates and tax deductions they were entitled too. Today, Joe and Suzy are paying less than $1,000 a year on gas and electric, thanks to that Ecobroker. They also enjoy improved health and are much happier knowing they reduced their impact on the planet.
EcoBroker is the premiere green designation program for real estate professionals. In order to earn the EcoBroker Designation, licensed real estate agents must complete an intensive online course. It is in your clients best interest to fully understand the green options they have to save money on utility bills, rebates and tax credits or deductions, and to promote a more eco-friendly lifestyle. Soon it will be required that all real estate agents learn about energy and environmental issues in order to receive a license.
Andrew Cepeda is an Ecobroker in the Littleton, Centennial, CO area.
If you would like to talk, please contact me at 720.216.7617 or email me at andrewcepeda@gmail.com
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