• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Energy Saving Homes

Status
Not open for further replies.

Workbox

Elite Member
Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
Has anybody seen any evidence of homes selling faster or higher due to energy efficient items, construction? Recently with a client that is looking for a home, that is one of the criteria. I kinda been noting slight shifts towards energy efficient homes.
 

RustNeverSleeps

Junior Member
Joined
May 15, 2007
Professional Status
Certified Residential Appraiser
State
Texas
You would think they would with the savings when it comes time to pay that electric bill (especially when its 100 every day!).

I just did an appraisal on an energy efficient new construction home. I guess you could call it a tract green builder. There were 5 other builders in the community and I just didn't see any verifiable price or time differences. No resales of these yet either.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Kinda, sorta, a leetle bit, maybe?:unsure: I am not seeing significant consideration at the present time, but I am in a 3 season heat/cool climate...:shrug: most places in this climate are somewhat geared to conservation even if they are older construction....

I noted there was a lag between the start of the last huge inflation/energy cost spiral... and the point at which replacement windows, additional insulation, and similar features started getting BIG play in listing agreements. Happened about the time folks started putting together how much living in their house was REALLY costing them.

After the Previous 'oil crisis' there was a definite trend to 'thinking' about value for energy conservation features... some of us oldsters recall filling out the forms where the lender could take into account the decreased cost of 'home operation' in energy efficient homes... and would consider that 'savings' in repayment ability calculations!

It had a bit of an upsurge again in the early-mid 90's... and then seemed to largely slip from the public eye.

I think part of what we are seeing is a bit more interest in the age/condition of the HVAC unit, a stronger correlation between DOM and high dollar items requiring repairs... and folks paying a little more attention to actual condition of costly repairs especially those with drastically increased cost of materials & labor- such as roof, earthmoving, concrete/gravel etc which require big trucks... instead of just the surface gloss and cosmetics....

I WOULD keep an eye on this issue, as I personally suspect that energy AND the new regulations as regards repairs/maintenance in older homes with potential of LBP (lead based paint) are going to become coooostly!.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Lee Ann,

Thats what I was thinking also. Clearly you could demonstrate a low utility cost means more disposable income.

Veterans(I am one) are loan qualified on certain cost to live, utilities being one of them. After it is all worked out the Veterans was required to have a certain amount of money left over(disposable) based on how many are in the veterans family. It is a good system. Thats why VA loan foreclosures are comparatively low.

Seem like in the absence of market data you could at least demonstrate the savings.
 

Financially Feasible

Senior Member
Joined
Jun 25, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
Has anybody seen any evidence of homes selling faster or higher due to energy efficient items, construction? Recently with a client that is looking for a home, that is one of the criteria. I kinda been noting slight shifts towards energy efficient homes.

I've seen some listings of some "green" homes popping up in my areas. I've interviewed both homeowners of competing listings which are "non-green" and found an estimate for monthly utility bills... then I interviewed the builders of the "green" homes and they gave me an estimate of the monthly utility bills. Based on several different comparisons that I've made... the premium that the "green" property charges would necessitate that the owner live there for between 260-310 years to fully amortize the premium with the "savings" from the the property's "green" features. :Eyecrazy:
 

Financially Feasible

Senior Member
Joined
Jun 25, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
You would think they would with the savings when it comes time to pay that electric bill (especially when its 100 every day!).

I just did an appraisal on an energy efficient new construction home. I guess you could call it a tract green builder. There were 5 other builders in the community and I just didn't see any verifiable price or time differences. No resales of these yet either.

Ray, be VERY careful of "energy efficient new construction" and "green new construction". "Green" homes are typically LEED certified. "Energy efficient" homes are tract-labeled because the builder used a few Pella insulated windows, some recycled green insulation and installed a "high-efficiency" heater. They probably wouldn't meet 20% of the criterion to become LEED certified.
 

Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Got one I am starting to work on now. Straw bale, passive solar, active solar, hydro cooling, off the grid, 1500 gal H20 storage for rain water to use as gray water, well for drinking, pump run by solar and storage battries. Wood back up heat. H20 heat in floor, passive and active cool root cellar in basement. Interior is clay straw plaster, exterior is clay straw plaster.

Passive active solar green house for growing weeds and veggie's. Drip irrigation watering system.

This is going to be a neat one to do for sure. I will be posting some pics of the home in a day or two. What a view it has of the Kickapoo Valley and Kickapoo River.

Yep this is going to really be a neat one to do. Even got inspection doors and windows for rodent wall inspections.
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
The fact is green isn't cheap. Until real technological breakthroughs occur that fundamentally lower our power consumption or fundamentally increase our output of cheap clean energy there are no REAL economic incentives to go green for the average consumer.

It's the same with solar power. Sure, it's great for that feel good component of your psyche and impressing your friends. But, the fact is it is immensely expensive and this country give more back in tax credits for buying an SUV over 6000 pounds than it does for going solar.
 

Workbox

Elite Member
Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
We have Energy Star as the secret pill, but when I tell the Builder Rep that I can build a dog house and call it Energy Star. I get a red face and a nauseous look. Because when I go through the construction phase of a house I point out all the deficiencies on why that window is not being installed by the manufacturers specifications. One big hype is the double pane windows that aluminium frame. I tell them that they are still not efficient. Because the Metal frame is introducing a heat and cold load into the house. I think many homes are selling becuase of such "Marketing". But when you understand the actual right way to install those items to have a comfortable house, you will be amazed how incorrectly they are being applied. So I educated my client that when it comes to resales and tract built new construction, chances are that there will be much difference in application except for the windows and if or if it does not have a radiant barrier and if the cooling system is sized correctly for humidity extraction.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
I just appraised an "energy wise" home. This home was built "air tight" with foam insulation in the walls ceiling, roof all on a concrete slab with brick exterior. Windows were not allowed to be in direct sunlight and were the highest energy efficiency you can buy. Basically, the home with a big sealed styrofoam cooler with typical traditinal brick veneer and composition roof. Here is the kicker, Energywise has the a/c and heating separately metered and "guarantees" energy bills on the 4,500 SF living area home to not exceed $150 per month. This when the typical electric bill for the neighborhood is $500-800 per month.

This falls into a construction quality appraisal problem. A $350+ per month electric bill savings a month can not be ignored. Fortunately, I found another sale within three miles that boasted $300 electric bills for a 5,000 SF home.

This appraisal was underwriting for almost a week. A based it on that sale, plus typical sales in the neighborhood with a construction quality adjustment. I had one sale that had better upgrades, but no energywise system and called them equal on construction quality costs. Six sales and extended underwriting.

I did make me curious about building an energywise home with a guarantee on energy bills though,
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks