Why Energy Efficiency Matters in Today’s Real Estate Market

Written by Posted On Wednesday, 26 September 2018 20:36

As technology within the renewable energy sector continues to sophisticate, homeowners now have more opportunity than ever before to make their homes as energy efficient as possible. Solutions that once sounded more far-off, from solar panel rooftop systems to smart thermostats and more, are now a reality for many. As such, real estate agents have now added “energy-efficient features” to their list of amenities to highlight on any new listing.

 

But why have we become so interested in pursuing homes that use less power? Is it the cost savings we recognize on our monthly utility bill? Is it a deeper resolution to be more eco-conscious and green in our decision-making? Is it a combination of both of these factors, along with other considerations? Understanding the answers to these questions is critical to helping buyers navigate the buying journey. Let’s delve into why energy efficiency matters and what we can say about it.

 

The Issue of Cost

Some homebuyers might list a heated pool, designated laundry room and newly remodeled kitchen as the top features they’re looking for in a new home. Still, others might top their list with a rooftop solar panel system. In fact, one recent survey found that 71% of households deem energy efficiency as very important to them, though only 35% believe that they’re taking advantage of all of the ways to make their home as efficient as possible. Investing in renewable energy home solutions can help homeowners significantly reduce their utility bill, helping to offset the often steep prices that these systems carry.

 

While there are still developments to be made before solar, wind or hydropower systems can totally replace the traditional utility grid, these features can make a valuable difference, starting in the first month. There are also technologies available that can help users harness and store this collected solar energy for future use, making it a valuable setup when the grid is down due to weather conditions or there is a dense cloud cover lessening the use of a solar installation. This can be an ideal selling point and a great way to start the conversation around energy efficiency with buyers who may be uninitiated.

 

Improved Whole-Home Efficiencies

One of the most common complaints about an older home is how much heat or cool air it loses. Most often, this is the result of worn and outdated window or door casings that have lost their original sealant properties. As such, an energy efficient home with new windows can hold in air much better than one that maintains old and drafty entryways.

 

An inefficiency might also be attributed to the fact that the home has insufficient insulation materials. While today’s insulation is usually comprised of green options spanning from icynene to sheep’s wool, older homes may still feature outdated fiberglass insulation. Unless properly sealed, this insulation can enter into a home’s air vents and become circulated throughout the house, where it can cause damage to the skin and hinder respiratory functions.

 

In addition to making the home more comfortable during the winter and summer months and helping homeowners avoid the fate of dressing in layers when the winter hits, resealing the doors and windows allow the HVAC units to work at a comfortable rate, rather than straining to keep up with the demands of a home that constantly drains itself of air. As such, utility bills are lower and the chance of a power surge or overload is diminished. Moreover, replacing and refilling insulated areas can help a home retain heat more effectively as well.

 

A Shift in Buyer Lifestyle Priorities

While everyone enjoys a home that is as cost-effective and easy to operate as possible, energy efficiency also matters in the real estate sector because, put simply, today’s consumer is more interested and conscious about protecting the environment and his or her place in it than ever before.

 

This is why many new builders request the use of green building materials, why the tiny house trend is so popular and why smart home technology is one of the fastest-growing and top-grossing industries around. Homeowners want to make wise, earth-friendly decisions that will reduce their carbon footprint, afford them the ability to see the world without being tied to a power-hoarding machine and set plans in motion for the generation after them.

 

Looking Ahead: Appealing and Understanding Today’s Green Customer

Future-focused real estate agents will be those who can help buyers see the features that an energy efficient home has, and if there are not many, recognize the potential to add them in. At the end of the day, most of us have one common goal: to create a home that is happy and healthy for our family. Real estate agents can explain these features less as technological components akin to something off the Jetsons, and instead, explain their practical application.

 

A mother of three might love the fact that a home for sale has a smart washer and dryer that can sense when a load of laundry is ready to move from one machine to the next. A businessman who spends a majority of the week away from home can appreciate a smart thermostat that adjusts his home’s heating and cooling systems to work less fervently when he’s out of town. Understanding your client is essential to any successful real estate endeavor, but arguably most so when selling an energy-efficient home. By explaining the data, breaking down the use cases and highlighting the overall savings to be recognized, agents can help make these nice-to-have features as anticipated and appreciated as possible.

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