According to several surveys, while energy efficiency tends to be an appealing feature for homebuyers, few home listings market these features.

A National Association of Home Builders and Remodelers (NAHBR) survey showed that more than 90 percent of buyers are looking for energy-efficient or green features in a potential home. In addition, a national survey from the real estate brokerage ZipRealty reports that more than half of the home buyer respondents say that energy efficiency upgrades are an important part of their home-buying decision. However, only 1 percent of home listings market these features.
 
Energy-efficient and green home upgrades like appliances, major home systems, flooring and roofing appeal to home buyers for a number of reasons. A primary reason is the potential for years of savings on energy bills. Other reasons home buyers value these features include occupant/family health, tax credit availability and resale value.

Features buyers look for
buyers are putting “environmentally friendly” and “energy-efficient” high on their wish lists when home shopping and are looking for specific features like ENERGY STAR® appliances, water-saving devices, efficient windows, solar power and use of sustainable or environmentally friendly materials. Surveys indicate other popular energy-efficient features are fuel cells, geothermal heat pumps, wind-energy systems, insulation systems and materials, roofs that resist heat gain, bio-mass-burning stoves, energy-efficient windows and heating ventilating air conditioning (HVAC) system upgrades.
 
Because today’s home buyers are also looking for quality, energy-efficient upgrades are considered important factors in increasing home value. Long-term studies show that energy efficient features that will cut annual electricity costs, like solar panels, can increase the property value of a home by a 20:1 ratio. If the feature nets $1,000 annual electricity savings, the property value of the home can increase by $20,000.
 
Keep in mind, too, that 75 million tech-savvy Generation Y-ers (those born between 1982 and 1995) are coming into first-time homebuyer age and will be looking especially for updated, energy-efficient, environmentally friendly homes.
 
According to BuilderOnline.com, studies show that Generation Y is more eco-minded, ethnically diverse and technologically literate than previous generations. Those attributes will influence their home-buying decisions. As the first generation to be fully immersed in computer technology, these home buyers will seek homes with room for a fully-wired office, energy-efficient appliances and home systems, recycled materials such as countertops and flooring and organic landscapes that center on sustainability.
 
Generation X, (those born between 1961 and 1981) seems to have similar leanings. This home-buying group has a sincere desire to protect the environment and consider natural resources, and expects to demonstrate that concern in their home-purchase decision making.

Funding for energy efficiency improvements
 
In addition, the U.S. Department of Housing and Urban Development and the Federal Housing Administration have sponsored the Energy Efficient mortgage (EEM) program to provide borrowers with special benefits when buying a home that’s either energy efficient, or can be made efficient by installing energy-saving improvements. The federally recognized loan program can be applied to most mortgages to pay for upgrades at the time of purchase.
 
The EEM increases homebuyers’ buying power and raises the potential resale value of their home. For more information on EEM visit www.hud.gov/offices/hsg/sfh/eem/eemhog96.cfm.
 
It is clear that buyers want the most energy-efficient home their money can buy. Marketing such features is an important component of drawing these buyers’ attention to your listings.

Sources:
Homebuyers’ interest in green home features increases. ZipRealty.com. 2010 Aug 17. Available from Internet: http://www.realestaterama.com/2010/08/17/homebuyers-interest-in-green-home-features-increases-with-energy-efficiency-cited-as-top-priority-ID07653.html.
 
Rice A. Consumers rethink home-buying priorities. Builderonline.com. 2009 Jan 22. Available from Internet: http://www.builderonline.com/housing-trends/consumers-rethink-home-buying-priorities.aspx.

Chongchua P. Going green may help sell your home. Realty Times. 2009 Jun 5. Available from Internet: http://realtytimes.com/rtpages/20090605_green.htm.
Proposed federal legislation, the Home Star Retrofit Act of 2010, was approved in May 2010 by the U.S. House of Representatives and is currently awaiting approval in the Senate. This bill calls for a cost-effective two-year plan to stimulate rapid job creation in construction and manufacturing. It is also designed to help Americans save on energy bills by offering short-term consumer incentives and long-term energy improvement financing for the purchase and installation of insulation, weatherization products and HVAC upgrades.
Courtesy of: Teri Pacitto Group