Why is it so Hard to Buy a Green Home?
“Green” is the future in real estate! No doubt. The benefits of “Going Green” are enormous. They range from helping the environment to saving your hard earned money. Businesses, families and individuals are revamping the way the think about and use their desired power sources and strive to achieve a “Green” solution. One of the biggest challenges with “Going Green” is actually securing the Green real estate. The technology is so new that there is simply not a lot of green real estate options. Almost all potential buyers if given the option would chose the more eco-friendly and money saving green home. It actually tops the list on most desirable features in new real estate purchases. But there can be some big hurdles during their search. Finding and purchasing a green home is certainly easier said than done. Thanks to a variety of issues, it’s more difficult than you would assume to find these homes!
What exactly is the problem?
– Supply/’Demand
Green has been trending for quite some time. It has been considered alternative and on the fridge but now it is mainstream and very desirable unfortunately Amreicans tend to go for the “Quick Buck”. Therefore, the number of homes that actually have these updates is limited. Since these homes are in high demand, especially among first time homebuyers, you may find it more difficult to find one of these homes, because the supply just isn’t as strong as the demand.
– $$$
Energy efficient upgrades increase the value of the home, which means you are going to pay more for a home that has these upgrades. Although the extra savings will typically be made back over time because of the decrease in utility bills, the added upfront cost is pretty significant. Right now, that added cost is coupled with the low supply of homes – which makes these homes even pricier. A recent survey showed that nearly 95% of homebuyers listed energy efficient upgrades on their list of “wants” for their home. Since the supply is far less than the demand, expect to pay quite a bit more for a green home than a home that has not been upgraded!
– Appraisals
Another challenge that “Green” real estate shoppers and “Green” real estate developers encounter is Appraisals. How much is the green modifications work. Sometimes the work is valued too high and sometimes too low. It is difficult to value newer technology so the prices for “Green” modifications or enhancements vary and is not considered an exact quote.
– Can this affect you?
If the appraiser does not correctly factor in the value of the energy efficient upgrades in the house, both you and the seller may suffer when the home appraisal is sent to your lender.
Although people are starting to realize the need for this information, the inclusion of this information is not occurring quickly enough to satisfy green shoppers who are stuck searching far and wide! For more information about this article or any other real estate related issues use this link, Waterfront Properties and Club Communities.
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