Get your home certified green by a third party if you want it to fetch a good price in the real estate market. With a volatile economy, the real estate industry is uncertain. It is heart-warming to note that sustainable or eco-friendly homes for sale in College Station, TX or somewhere else are a sound investment even during trying times. There are several studies that support this theory.
• In California. The study by Matthew E Kahn of UCLA and Nils Kok of Maastricht University (Netherlands) cancelled out the doubts about the potential of green homes in the real estate market. The doubt has been erased after using a remarkably large sample consisting of 1.6 million homes sold between 2007 and early 2012 in California. The study revealed that certified green homes can make buyers pay about 9% more to its selling price. The researchers drew the conclusion after removing the effects of other variables that can influence the price of the real estate.
• In Seattle. The study covering home sale transactions in Seattle revealed that the green-certified homes can fetch a price that is about 8.5% higher per square foot compared to non-certified homes. These homes similarly tend to sell faster based on home sales from September 2007 through December 2009 and this trend continued until January 2010, while the noon-certified homes in the same area are losing value. Those that were certified after passing the strictest certification processes even performed better and fetched prices 25% more than its uncertified counterparts.
• In Portland, Oregon. The green-certified homes around the metro area sold 12% higher than regular homes from May 2008 to April 2009 according to Earth Advantage Institute. According to Regional Multiple Listing Service the premium per square foot for eco-friendly homes even went as high as $193 compared to $173 for non-green homes.
Why are green homes outperforming their competitors in the real estate market? There are many possible motivations. Foremost reasons are to help address climate change, to lower power utility bill, and to improve the indoor-air quality. People also want to live in a green home because it is a symbol of one’s environmental ideology much like the “Prius Effect.”
Prius is the name of a hybrid Toyota car that far exceeded the sales of similar cars such as Honda Civic. No other fuel efficient or hybrid car has been practically as successful. What is the reason for Prius to outsell its competitors? Economic analysts believe that it has something to do with “signalling.” Simply, this means that Prius carries a signal that you see a mile away: environmental consciousness. It is the same for green homes.