Making eco-friendly home features pay off
Buyers prefer eco-friendly upgrades that save them money
By Alyson McNutt English, Cyberhomes Contributor
Published: September 23, 2009

In Portland, homes with eco-friendly improvements sell quicker and for a higher price. (Photo: iStockphoto)
When it comes to dollars and cents, energy-efficient, low-E windows and high-performance insulation are a better bang for the home buyer’s buck than shiny hardwood floors. Fortunately, the real estate market is beginning to recognize this: A survey of “green” home sales by Earth Advantage, a non-profit green building organization in the Pacific Northwest, found homes in the eco-conscious Portland area sold for 4.8 percent more and stayed on the market 24 percent fewer days than comparable homes without earth-friendly improvements.
If you’ve made green renovations to your home and are getting ready to sell — or if you’re thinking of making eco-friendly home improvements and have an eye on return on investment — check out these tips for making sure your earth-sensitive changes get you all the “green” you deserve.
Focus on eyes ... and wallets
Buyers are more likely to pay a premium for green improvements they can see, touch or feel in their wallet, says Andrew Jay Gross, chairman of The Green Committee in the Beverly Hills/Greater Los Angeles Association of Realtors. “Buyers clearly look for visible green features, like lighting, floors, appliances and garden features that use indigenous plants to conserve water,” he says.
Energy-saving lighting systems that use watt-sipping compact fluorescent or LED lights can really turn buyers on to a property, he explains, because they can see the system and know they’ll feel the difference in their wallet. And if you think these lights are all big classroom-style tubes or huge twisted coils, think again. More and more energy-saving bulbs are coming on the market in a variety of shapes and sizes to fit into even the most sophisticated décor.
And while they appreciate the good karma of saving and sustaining the earth, most buyers are likely to flock to the improvements that will save them money in the long run. Energy savings are really one of the driving forces pushing green into the mainstream of home buyers’ consciousness, says Jeff Ammons, president of LiveGreen Inc., a company that specializes in helping homeowners make marketable green improvements to their homes. “Most homeowners care about sustainability, but when it comes to money, energy savings is the big seller,” he says. “Sustainability requires more effort and longer payback periods than energy savings."
Ammons says many buyers he’s seen are looking up and down for improvements … literally. They seem to care most about the insulation and sealing in the attic and crawl spaces, and love upgraded, energy-efficient HVAC systems, he says.
Choose a real estate agent who understands ‘green’
A lot of buyers who aren’t searching specifically for an eco-friendly home can still be drawn to one if it’s marketed properly. “Each marketing effort is an education to most buyers,” says Jan Green, a Realtor and certified EcoBroker in Scottsdale, Ariz.
Green says she can’t just say, “Low-VOC paint” and expect it to sell a home, because most buyers don't understand the term. “But even when I explain that it means there are no volatile organic compounds in the paint, I have to explain what that means.” So if your real estate agent doesn’t completely understand what the green features in your home do or why they add value, neither will potential buyers.
But as green homes become more common, professional certifications are emerging to meet the needs of sellers. The best-known green real estate agent certification is probably the EcoBroker designation, which is administered and awarded by the Association of Energy and Environmental Real Estate Professionals (AEEREP).
John Beldock, Executive Director of AEEREP, says that as consumers become savvier about what makes a home green, it’s even more important to have someone representing your home who really understands eco-friendly features. “The best marketing is credible, honest marketing, based on accurate representations and without ‘greenwashing,’” or making something appear greener than it actually is. (You can find EcoBroker Certified professionals on the EcoBroker website.)
Find the right buyers
While almost any buyer will be interested in a home that’s more energy-efficient, there’s still a certain group of home shoppers who don’t want anything except a green home. To target this group, you and your real estate agent may want to go beyond the run-of-the-mill Multiple Listing Service (MLS) listing.
New sites are cropping up to cater to eco-conscious home seekers and sellers. Green recommends including your home on sites like ListedGreen.com, GreenHomesForSale.com, and the EcoBroker.com site, which draw an already eco-savvy crowd who know they’re specifically looking for a green home.
Many local Realtors groups are working to modify their area MLS listings to cater to green homes, as well, since many buyers who aren’t necessarily super environmentally aware are still interested in reaping the energy-saving benefits these homes offer. Now, instead of only being able to search by metrics like home size, school district or price, in some cases buyers can also search on some websites for LEED-certified residential properties (which meet strict green-home criteria set by the U.S. Green Building Council) or Energy-Star-rated homes. But don’t stop there — take advantage of social networking sites like Facebook and Twitter to promote your home's green qualities, as well.
Remember that no matter what, there is value in green. “These energy and environmental features make for better properties, and consumers and investors favor properties with better walls, better windows, better mechanical systems and better indoor air quality,” Beldock says. “The key principal is accurately describing these features in a property.”