Can “Green” Labels Sell Homes?

We’re at the National Association of Realtors® (NAR) conference this weekend, which is taking place in New Orleans this year and one of the “HOT” topics in this conference is “green” or eco-friendly.  Earlier this morning an education session titled Green Labels Sell Homes with speaker Sara Lamia from Home Buying Coach Inc., spoke about green certification programs, how agents must prepare to explain the “green” value to buyers as well as the strengths of “green” in a competitive market.  The title of that session begs the question of whether “green” labels do in fact sell homes.

The Green Pavilion at NAR

In a previous post of ours, Home Buyers “Buy Into” the “Going Green” Trend, we researched the answer to that very question. According to the key findings from a new study by PRD Nationwide, 30% of participants stated many would certainly fork out up to $10,000 extra to build or buy a “green” property; which is excellent news for agents marketing a “green” home. However, to have buyers fork out extra money you need to make sure that the home goes through the appropriate checks to verify it as an energy efficient home.  Dave Porter from PorterWorks, Inc., addressed this in his session Green: What Your Lender & Appraiser Need to Know. He spoke on how to identify energy savings that will increase the value of the building as well as true green mortgages.

I think it’s safe to say that the “green” trend is here to stay in the eyes of home buyers and sellers. Real estate professionals will begin to encounter more and more “green” properties and should be ready!

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2 thoughts on “Can “Green” Labels Sell Homes?

  1. Ok heres my question. If its all about going green , why do you have such a hard time financing a green home. Solar powered homes
    here are charged a higher interest rate. I live in an earth ship which is about as green as you can get, no one will finance them,it makes no sense to me.

  2. Green labeling will NOT sell homes, people will say anything when they are asked but will want a reduction in price to buy regardless of green construction methods. Very few people would pay “extra” for green construction. Most green construction materials and systems are far from “green”. Many systems are unproven are extremely costly to maintain and repair. Don’t get me wrong, there are some good systems and materials available but buyer beware as the labeling on the “green” items is far from being regulated.