[Greenbuilding] What are Energy Upgrades Worth

[gennaro brooks-church]

Speaking as a Real Estate Broker my opinion is that these upgrades are
worth a lot. The appraiser won't factor them in for the bank, just like he
does not value differently a garden beautifully landscaped vs. a cement
slab. So that will effect things for many people if the bank wont account
for the upgrades in the loan.
There is a financial reason developers build the way they do. They build
for what the bank will finance and for what the average (uneducated in eco)
person cares about. Thus you get buildings without insulation and kitchens
that look great for a couple years.
But by putting in the upgrades you are selling to a different market, a
much smaller one for sure, but the click through rate is much higher. If
you market and price it for these people, instead of showing the house 100
times over two months you may only show it 50 times. But you won't be
wasting your time.

Gennaro Brooks-Church
EcoBrooklyn.com
347-244-3016
22 2nd St., Brooklyn.
This email was sent from my phone.

On Nov 28, 2012, at 6:37 PM, Steve Houlihan <sho11 at comcast.net> wrote:

 When you go to sell your, the answer is "not much".  I was reading the
recent blog by Roger Normand at GBA and thought I would share my recent
experience.

I am in the process of buying a new house closer to town.  I found a nice
house that met all our needs and it was the recent recipient of a few
costly upgrades.  The owners had installed a $35,000 Photo Voltaic system
and a gray water recovery system that automatically waters a very large
garden as well as all the landscaping around the house.  These projects are
less than 2 years old.  When my realtors told me what they thought the
house was worth they compared it with other 4 bdrm, three bath houses in
the area.  That was just about the only criteria.  I told them I was
willing to pay more for all the work that had been done but they were
adamant about the worth of the house.  They even admitted that they
understood the value of such things but it doesn't change the price.  Wow!

Now I wonder about my present house.  I have spent well over $100K
upgrading this house.  High efficiency furnace and water heater, *lots* of
insulation and air sealing. Blower door tests to find the leaks.  I guess
I'll find out soon enough what they are worth to the "market".

Steve in Santa Cruz, California

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