Buyers Willing to Pay More for Green Homes

Friday, November 13, 2015
Builder (10/28/15) Shanesy, Lauren

High-performance homes marketed with green features in Washington, D.C., sell for 3.46 percent more than those without, according to an Institute for Market Transformation (IMT) study. The study paired eight high-performance homes with three non-high performance homes across seven ZIP codes in Washington, D.C., and found 19 of the 32 paired sales commanded green premiums of 2 to 5 percent. The mean green premium was 3.46 percent, while the median green premium was 2.91 percent. The study found the green cost premium is 5.7 percent for builders and developers of new homes where green projects represent 30 percent or more of total projects and 8 percent for those where green projects account for less than 30 percent of total construction. "Home sellers, Realtors, and appraisers who are not factoring in energy efficiency when selling a home are leaving money on the table," says IMT executive director Cliff Majersik.

Lauren Shanesy 11/13/2015

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