Going Green: How energy savings can help your clients afford more house

We all know going green is good for the ol' third rock from the sun, but it's also good for the other kind of green: cash.

Unfortunately, there are currently no standards when it comes to home valuation and energy features. But going green is something agents need to be prepared to discuss with their clients.

Its very easy for home buyers to concentrate solely on the monthly house payment when in reality there are so many other costs associated with home ownership. Consider the following example. It doesn't include costs like insurance or maintenance, but it illustrates an interesting point:

The moral of the story? When purchasing a home that has $150 in monthly energy and water costs instead of a home with $300 in energy and water costs, your buyer gets an additional $33,403 in purchasing power.

Is it possible to save $150 per month on energy and water in every home? That depends. Homes that do not currently have double-paned windows or an energy-efficient furnace could easily be upgraded to save $150 per month. Homes that were built with modern construction techniques and little to no landscape may have fewer features that would benefit from energy-saving upgrades, and finding $150 in savings may be more difficult.

Regardless, it's an important factor to discuss with your clients.

Comments (1)

Heating and Cooling Energy Savings

It is very important to note, that Colorado Residents who's electric provider is Xcel Energy are eligible for up to $1100 in rebates when the install a new energy efficient furnace & A/C. Also, the federal government has an energy efficient tax credit of $500 for heating and cooling. The department of energy would like all homes in the Northern US, including Colorado to be have at least 90% efficient heating units. This would roughly save families up to 30% on their heating and cooling energy costs. Another great way for your clients to save money on energy is to have a tankless water heater installed in their home. Not only do families never run out of hot water, but you also will save up to $85 dollars a year on your energy bill, as well as a tankless water heater emits over 1000 lbs less Co2 emissions than a tank water heater, saving 15 trees per unit installed. In the long run, having an energy efficient heating and cooling system in your home is extremely important, especially with the rising cost of energy. If your inspection on your clients home comes back with a negative or broken heating or cooling system, when replacing the system, speak with your buyer and seller about installing energy efficient units, over the typical 80% furnace.

Posted by Jamie Goldberg on March 11, 2013 | 10:38 AM

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