Many times I am often asked, “Will Green features pay off when you are selling your home?”

With all things being equal, the answer is: “If buyers have a choice between a house with low water and energy costs and one where the costs are high, they will probably choose the home with lower operating expenses.”

Most of my buyers today are pretty savvy about a lot of the features of energy efficiency and noise reduction, and most of my buyers generally take into consideration the cost of installing double pane windows versus buying a home that already has them. Installation for double pane windows can be expensive, so the ones that already have them definitely have an attractive selling feature. Let’s face it: homes in the Bay Area are expensive compared to homes in other parts of the country. So, if the buyers know there may have to be an additional outlay of money down the line, they will try to avoid it. On average replacing windows returned more than 75% of the total cost over the long run. Combine that with possible incentives, lower energy costs, and the appeal for when you sell, and it’s almost a no brainer.

Consider:

  • A tight house prevents heat loss. Utility companies are are now offering rebates for installing weather stripping around windows, doors, vents, cables, and electrical outlets.
  • Using a programmable thermostat and setting it to reduce output when no one is there or when you are sleeping will save another $100 or more per year.
  • When you buy a new furnace or new appliances, buy ENERGY STAR appliances that meet high-level energy efficiency. Depending on what you buy, the government will rebate up to 30% of the cost of the furnace or appliance this year, as long as you purchase by December 31, 2010, as part of the Federal Tax Credits for Consumer Energy Efficiency.
  • Another inexpensive way to save money is by changing light bulbs to fluorescent from incandescent. And, as I heard from Consumer Reports the other day, the trend towards LCD lighting, which will give you a brighter, more natural light at a lower cost, is on the way.

So as you think about selling or buying your new home, you should think about these new incentives. It’s apparent that energy costs aren’t going down anytime soon, and with the tragic accident that just happened in San Bruno, someone will have to pay for the expense of rebuilding and examining all the gas lines for any additional problems. Something tells me it won’t be just PG&E: they are bound to pass the costs on to the consumer in the form of higher energy costs.

As the Nike commercial says, “Just Do It.” In the long run you will be glad you did for both the sake of your home and the reduction of greenhouse gases in the future.

Posted by:  Rick Smith