Facts All Agents Should Know When It Comes to the Green House Market

 What should agents know about the Green House Market?

All an agent needs to know can be found at the National Association of Realtors Green Designation.

Preserving our environment is a very important factor in today's world. Going green is not just a choice but a way of life. When it comes to homes, there are green homes out there to be sold. Here are eight facts all agents should know when it comes to the green housing market.

Green Certified Homes

Green-certified homes are not just energy efficient but also official and governed. There are certifications that must be met in order for a house to be deemed green certified. The water, energy, site design, intelligent use of resources, quality of the indoor environment, and overall home operation and maintenance are reviewed to see if they meet certain criteria for environmental friendliness. The U.S. Green Building Council (USGBC) sets LEED standards in order for a home to be LEED-certified.

Green Designation for Real Estate Agents

If agents want to learn more about green homes, the National Association of Realtors has created a Green Destination. This is where agents can learn more about sustainability and energy efficiency in real estate through classes or online. Once the agent has done this, they can take an exam to earn the Green Designation. Becoming Green Designation gives you access to marketing tools, market research, understanding of green homes and how to market them, and inclusion in the online Green directory.

The Green Standard

A home does not have to be necessarily certified but can have green home features that can be highlighted. Agents can use these green home characteristics to appeal to this niche market that loves sustainable living conditions. These features can include solar panels, installation of energy-efficient appliances, and construction using recyclable materials, such as flooring.

Energy Efficiency Saves Money

Energy efficient homes can save money on utilities. Energy Star-certified appliances can help add value to a home and reduce utility costs. A seller can get an energy audit on their home which will give buyers an idea of home much energy the home uses and how much that can save with a sustainable home.

Green Homes and Landlords

Renters can also benefit from a green home as well as landlords and investors. There are tons of tenants who are looking for a sustainable home. Green homes use less electricity and water so utility bills will be lower.

Preservation of the Environment

A green home will preserve our natural resources. This is a great way that homeowners are taking action to improve and preserve our world. Ways to do this are using recyclable materials and energy-saving components.

Safety and Peace of Mind

Green home standards are built with specifications in mind. These requirements will hold builders accountable for your peace of mind. Buyers can be reassured that the home they are purchasing is safe and efficient.

Saving Money and the World

Millennials who make up the largest growing niche in the real estate market love saving money and saving the planet. These homebuyers are looking for a sustainable and affordable home. Agents can push green homes and list all of the incentives that come with a green home.

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Green Building – Tax and Rebate Benefit for Homeowners

There are always tax benefits for taxpayers who own their own home. New home buyers and remodeling homeowners can accrue tax credits when using green building techniques. Congress established these energy-efficiency tax incentives in 2005 which include tax code section 45L credit for the construction of energy efficient homes, 25C credit for retrofitting/remodeling existing homes and 25D credit for the installation of power production property in new and existing homes.

The National Association of Home Builders (NAHB) believes that green building is so important that they started to promote the concept in 2004 and created the first certification program for using green building techniques called

Certified Green Builder.  A good majority of new home builders and remodelers are Certified Green Builders which include some of the top builders in St. Tammany Parish. In fact, some of the builders who build homes in Bedico Creek are Certified Green Builders.

There are many green building techniques that are used today which include double and even triple pane energy efficient windows that will keep in heat or keep solar energy out (Low-E and Argon gas windows), green roofs or cool roofs which will either absorb or reflect heat, high performance insulation that is design to seal a home more effectively against elements, enhanced ventilation that moves heat and cool air through the home, ceiling fans, water conservation fixtures, solar power, wind power, thermal solutions (high efficiency HVAC systems and programmable thermostats), ENERGY STAR® appliances and paint which stands up to harsh elements.

Where can we find the residential energy credits? Windows such as Low-E and Argon gas windows, high performance insulation, roof improvements, energy efficient doors, and ENERGY STAR® water heaters / AC’s / heat pumps can be applied toward the 25C credit. Be aware of the rule changes to the 25C credit which include a 10% rate and a $500 lifetime cap. Data indicates that roof improvements are the biggest claims for the 25C credit. The 25D is the more popular of the two tax codes.  The credits can be applied through the use of solar electric, solar water heating, wind turbines, geothermal heat pumps and fuel cells. Solar electrical remodeling won for the most claimed activity for the 25D credit. In 2012, the latest IRS tax data, $1.9 billion cost for solar electric and $700 million for geothermal heat pumps qualified for the 25D credit.  The total for 2012 was $3 billion in qualified installations that were connected to the 25D.

Going green has two great benefits for the consumer as a homeowner and a taxpayer, you not only save on your monthly energy bills but you can save on your taxes with these tax credits. Builders also benefit and should consider incorporating the 25C and 25D qualified green building products into new housing and remodeling projects.

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Energy Efficiency Saves in Small Measures

In order to have a proper perspective of how much energy saving measures will have in your new or existing home, you have to know the paramenters of energy saving capability as well as have the right expectation for the process going into it.  If you live in a much older home, built in an older neighborhood during a time when real estate was not as “coded” as it is today, you can expect to see a more dramatic increase in savings after spending more money up front to make changes.  This is because building codes are truly on the cutting edge of emerging green techniques which are constantly promoting more structurally sealed homes with low-energy, efficient technologies installed in them.  The savings really do add up, though, through a combination of several energy saving techniques.  Home buyers and homeowners can be assured that energy efficiency saves in small measures that over a year’s time give a return on investment.



Start Simple
Because the process of building is an imperfect process (no matter how detail-oriented your builder is) performed by mutliple contractors who “touch the job” once and then leave, you would be amazed as to how much small spaces and leaks allow air and moisture into your home.  To begin the energy efficiency process, you will want to seal your home as much as possible by caulking and sealing the spaces around your plumbing pipes, electrical systems, light fixtures, and windows as well as the unused portions of your home which can include your attic or crawl space below.  By closing up these areas to air and moisture, you can reduce the amount of air it takes to heat and cool your home.

Work on Major Systems When Possible
HVAC systems are notorious for being big energy suckers, so if you have the money to invest in a completely new system which would include an overhead air conditioning and furnace system (the most energy efficient way to heat and cool your home), you should do so.  If you don’t have the finances for such an expense, having a contractor come out for a service call to inspect your ductwork for blockages or leaks will make sure that your ducts area as efficient as possible.  Clean ductwork allows better airflow which heats and cools a space more quickly.

Small Changes Make a Big Difference
While you are inspecting and focusing in on your HVAC system, you will also want to immediately replace your thermostat if you do not already have an electronic thermostat.  Electronic thermostats can run from $28 – $120 depending on how quality or complicated you would like them to be.  This is a small investment which makes a HUGE difference in your heating and cooling bill.  Buy purchasing a programmable thermostat, you are able to control your home’s temperature when you are home, away at work, or sleeping to keep your heater or air conditioner from “running all day.”

Change Your Ambiance and Save Energy
Another suggestion as a way to reduce the amount of energy used in your home is to replace all of your light bulbs with bulbs that are either CFLs or LED lights.  However, if you are affected by lighting and the ambiance it provides, you could end up spending a lot on the front end to get the desired lighting affect you would like with LED lighting – the closest lighting alternative to old fashioned light bulbs.  If you aren’t picky about lighting, the new CFL light bulbs are energy efficient and last longer than old fashioned bulbs and are becoming more affordable as well.

Adjust Your Temps During Warmer Months
The last energy savings idea to use is to reduce the water temperature on your hot water heater.  “Out of the box,” hot water heaters are programmed to approximately 140 degrees.  If you reduce this to 120 degrees, you can save on heating expenses.  Also, by insulating the pipes on your hot water heater and the pipes going into either the wall or the floor, you can maintain the heated water as well.  While this might be a good idea during warmer spring and summer months, you may want to increase the temperature again during colder weather months because the air temperature feels cooler when you shower or bathe.

By using these energy efficient techniques altogether, you can drastically reduce the amount of money you spend each month on your energy bills.  If you are only able to do a couple or few of the ideas at present, your savings will be less.  However, any money saved is money that can be used for other life necessities in a tough economy.

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