Going Green: How energy savings can help your clients afford more house
By Nathan Froelich
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.