Energy Efficient Home Benefits
Benefits to Builder:
To the builder, energy efficient homes mean greater profitability. Energy features usually add less than 1% to 2% to construction costs, but greatly increase the marketability of a home. According to a survey conducted by the National Association of Home Builders, energy features are a major consideration of today’s home buyer.
Most energy features do not require special skills or materials, nor do they increase construction time. Many features also increase the durability of the home, which means fewer call backs and reduced liability for the builder. Energy efficient homes save homeowners money and are more comfortable, factors that lead to satisfied customers and great referrals!
In addition, builders of energy efficient homes have a product with greater marketing appeal. A national survey conducted by the Realtors National Marketing Institute showed that potential home buyers ask more questions about the cost of maintaining a home than anything else. The most frequently asked questions relate to utility costs, insulation levels, and the home’s general energy efficiency. With the increased marketability of an energy efficient home, builders can expect a quicker turnover.
This was further demonstrated by a homeowner survey that indicated 94% of new home buyers believed energy features were important in their home-buying decision. The same survey found that energy features, (i.e.insulation, improved windows) ranked in importance above such popular features as wall-to-wall carpeting, dishwashers, and fireplaces.
Another builder benefit is the fact that energy efficient homes are worth more. The Realtor’s National Market Institute survey also showed that 78% of the real estate appraisers felt that energy efficient homes were worth more — approximately 5% more. Although constructing an efficient home does mean higher costs to the builder, these costs are either offset by material and equipment savings such as 2″x6″ wall stud construction (which uses less lumber as a result of spacing studs 24″ on center) and smaller equipment sizes, or increased selling prices and quicker turnover.
Benefits to Homeowners :
Homeowners enjoy four major benefits from energy-efficient construction: lower utility bills, increased comfort, higher resale value, and qualification for “energy-efficient” mortgages. We’ll look briefly at each one.
Lower utility bills are the result of higher construction standards as compared to conventional construction. More insulation, better windows, highly efficient appliances, and wise use of the sun for heating and passive cooling are just some of the major reasons an energy efficient home will have lower utility bills.
Increased comfort is because energy-efficient construction techniques virtually eliminate drafts and temperature gradients that make homeowners feel warmer or colder than they really are.
Higher resale value results from better-constructed, more energy-efficient homes being worth more in the marketplace. (One survey found that 85% of the respondents believe energy-saving features add to a home’s resale value.)
Finally, the possibility of qualifying for an “Energy-efficient Mortgage” is a real advantage. Home buyers purchasing an “energy-efficient” home with energy consumption that can be documented may quality for a larger mortgage than they would receive on a “conventional” home. According to the National Association of Realtors, lenders are now looking closely at the projected utility costs for a home in determining whether a “prospective” mortgagor can afford both the monthly mortgage payment and the utility payment.
In addition, The Federal Home Loan Mortgage Corporation (Freddie Mac) and The Federal National Mortgage Association (Fannie Mae) have changed their appraisal forms to include energy efficiency. Freddie Mac has changed its purchasing guidelines to permit higher loan-to-income ratios for “energy-efficient” properties.
The bottom line is that more prospective homeowners can qualify for an energy-efficient mortgage on an “energy-efficient” home when lenders examine their ability to repay the mortgage.
Benefits To Lenders :
Many lending institutions recognize the financial burden high energy bills can place on a family and offer incentives for the purchase of energy-efficient homes. Both The Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) encourage consideration of energy costs by lenders in determining a buyer’s eligibility for a loan.
Demonstrating that the energy bills for a home will be low allows the lender to increase the debt-to-income ratio and can help a family qualify for a loan (or increase the amount of their loan eligibility).
The benefit to the lender is that more buyers qualify for loans and the value of the loan is increased. In addition, the loan is more secure, since homeowners in energy-efficient buildings will have lower monthly energy bills and be better able to make mortgage payments. Lenders also appreciate the fact that saving energy helps strengthen local economies that benefits everyone.
Benefits To Real Estate Professionals:
Increasing the energy efficiency of homes benefits Real Estate Professionals by helping homes sell faster. The financial incentives for “energy-efficient” homes offered by some leading institutions can also increase the number of qualified Buyers. In addition, real estate professionals benefit from the increased value of energy-efficient homes. Because energy measures last for years, they add to a home’s resale value too.
To take full advantage of the possibilities, real estate professionals must learn the basics of energy-efficient features and use them with prospective buyers. This further increases the value of the real estate professional because if they are knowledgeable, they can point out energy saving features and benefits the buyer might enjoy.
For instance, the home’s setting may be an energy advantage. Carry a compass and notice where the sun rises, shines all day, and sets relative to the home’s living areas. This information gives you additional features and benefits to share with prospective buyers. You might note to them that they can watch the sun rise through the windows of the east-facing breakfast area or point out how a deciduous vine or tree on the south exposure will provide cooling shade all summer, but drop its leaves in winter to let the sun warm the home.
By learning the whole spectrum of energy-efficient heating and cooling systems and construction techniques, real estate professionals separate themselves from the rest by being better able to communicate a home’s true value.
IN THE CONCLUSION IT CAN BE SAID THAT IT’S A BENEFIT FOR THE WHOLE HUMAN COMMUNITY AS ENERGY EFFICIENT HOMES ARE ENVIRONMENTAL FRIENDLY.
Source:Home Energy Library