Why should "Going Green" matter to Home Sellers?

Consumers are being forced to make changes in their lives and they are expecting the real estate industry to help them. They’re hearing ‘global warming,’ ‘glacier melting,’ ‘polar bear habitats,’ and they already know about rising gas prices and rising utility bills.

When they’re looking for housing, they are looking at many new factors. If there are two houses listed for about the same price, and one has a monthly utility bill of $280 and the other is $140, the consumer is going to want to know that difference and what’s accounting for that difference.

For years HUD, the Department of Energy, Bank of America, and Wachovia have had Energy Efficient Mortgages available, but most people don't know they’re out there; even mortgage brokers who have no idea that they’re available.

Also, in preparing a home for sale these days we need to consider a host of new issues:

• If you need to paint that room, but be sure to use a paint that is low in toxins.
• If the carpet needs to be replaced, be sure its low in toxins.”
• If the Central Air/Heating or appliances need replaced make sure to use models that are Energy Star rated (especially hot water heaters & dishwashers).
• If replacing plumbing fixture use low water usage units.
• Are the windows and doors "low energy" units?
• How do utility bills compare with similar homes?
• Are window treatments consistent with saving energy?
• Is there a programmable thermostat?

These are the kinds of features and items that will make a difference to buyers in the future. Whenever possible all repairs and/or renovations should include some or all the above considerations and documentation verifying same should be kept.

What's all this "Green" hype about

We all see it on the news, read about it in the newspaper, see it on the Internet. Is "Going Green" the next big boom, Trend, or Fad, in the Building and Home Renovation industries?

Having been an avid recycler for a long time, I find this new interest in the environment refreshing. In an effort to help others be more aware about the next biggest change in our lives (my opinion), I will post several short articles intended to shed some light on the subject, and why it is so timely with today's $4/gallon gas prices and energy related products going sky high. Virtually, no one in our country is untouched by these events.


What is "Green" Let's start by defining what Green is: According to Wikipedia, the free encyclopedia,

"Green" building is the practice of increasing the efficiency with which buildings use resources such as energy, water, and materials; while reducing building impacts on human health and the environment, through better siting, design, construction, operation, maintenance, and removal — the complete building life cycle.

A similar concept is natural building, which is usually on a smaller scale and tends to focus on the use of natural materials that are available locally. Other commonly used terms include sustainable design and green architecture. The related concepts of sustainable development and sustainability are integral to green building.

Effective green building can lead to 1) reduced operating costs by increasing productivity and using less energy and water, 2) improved public and occupant health due to improved indoor air quality, and 3) reduced environmental impacts by, for example, lessening storm water runoff and the heat island effect. Practitioners of green building often seek to achieve not only ecological but aesthetic harmony between a structure and its surrounding natural and built environment, although the appearance and style of sustainable buildings is not necessarily distinguishable from their less sustainable counterparts.

Future posts will briefly describe how it will affect trends in real estate, and how we can all do more for our environment, and save $$$$ in utility bills at the same time.

Latest Boomer Home buying trends

Baby Boomers already account for a large portion of home buyers today. It should come as no surprise, then, that Boomers may soon dominate trends in features and fixtures for new homes and even renovations.

A recent article in the Wall Street Journal explains, designers and architects are catering toward this fast-growing segment of the population. The influx of aging home buyers exhibit needs for wider halls and doorways for walkers and wheelchairs, and master suites and laundries on the ground floor so residents can avoid stairs (most builders offer 1st floor master models).

Now, the technology behind home appliances and fixtures is making all kinds of appliances and home electronics more senior-friendly. Some of the innovations appliance re-design include:

• Stoves that monitor pots to prevent boiling over.
• Adjustable typeface on appliance control panels.
• Faucets that turn on and off with just a touch any where on the spout.
• Dishwashers designed to be mounted at a more comfortable height.
• Refrigerators with storage designed to reduce bending over (readily available now).
• Adjustable volume/pitch of oven alarms.
• There's even a toilet on the market with an electric-blue night light built in and a motorized heated seat cover that rises with the touch of a button.

These trends will certainly continue to evolve, as buyer average age advances and Boomer life style preferences emerge.

Why use a local lender vs. Internet nationwide firm

First, simply put, buying a home in any market can be somewhat complex, and stressful for the inexperienced (or even the experienced) buyer. That's partly why it normally takes 30-45 days from time of contract signing to move-in. Thankfully, much of the activity is carried out behind-the-scenes by attorneys, lenders, etc.

Choosing the right professionals in the beginning is paramount, since much of the transaction involves the lender and associated contractors. Laws and regulations regarding property purchases vary significantly between states. The required documentation (often crucial in timing) varies widely as well. Late/wrong documents can delay or even prevent successful sales processing.

Since local office lender/brokers such as Chase, Wells Fargo, & in-house, offer competitive rates it's kind of a no-brainer as to why not use them. Since they operate daily in a specific area, they're always aware of local requirements (and recent changes) and documents. Hence they can offer smoother transactions and maximize the buyer's ability to get through the process with minimal risk and stress.

I've had clients have used out-of-town lenders in hopes of saving, only to find that there are hidden fees, and the overall cost for the loan to be as high or higher than that of a local lender.

Since, as Realtors, we don't get paid unless the deal goes through, its in our best interest as well, to suggest lenders with the skills and experience to secure a loan that is tailored to the buyer's needs.

Just as you choose a local Real Estate Agent to ensure proper area knowledge, you should work with a local lender for the same reasons. Ask your Realtor for a recommendation.

FHA loans are getting more popular

As lenders toughen their standards, loans by backed the Federal Housing Administration (FHA)are increasingly popular. The number of FHA loans issued rose 126 percent in the first quarter of 2008, compared with the same period a year ago. Most of FHA's business now comes from refinancing.

The volume of FHA loans at Wells Fargo has increased 342 percent this year from the same time in 2007, says Greg Gwizdz, the company's national retail service manager. Helping increase business were live simulcasts for real estate professionals that the lender recently held in movie theaters nationwide touting the benefits of FHA loans. Only borrowers who can make at least a 3 percent down payment or have at least 3 percent equity in their homes and who can document their income can qualify for FHA loans.

Guy Cecala, publisher of Inside Mortgage Finance, says FHA paperwork remains daunting and the rates aren’t always the lowest. “But if your choice is vanilla ice cream or no ice cream, vanilla starts looking good," he says.

Source: The Washington Post, Dina ElBoghdady (06/10/08)

Sellers staying current with the market...ranking

Everyone knows we continue to be in a Buyer's market, which is good if you're looking to purchase a home. For Seller's, there are a number of things to consider before planting the "For Sale" in the front yard, for which much has be written, including ranking.

Let's say, there at any one time, there may be 20-30 similar homes available in your area. You may not realize it, but all new listings are by nature quickly ranked by agents and perspective buyers. If your home makes the top 5 in that list the chances of your home selling quickly are greatly increased. If, however, you're at 10 or below it becomes very unlikely your home will sell early or if at all.

Furthermore, you might think that your ranking would automatically increase as higher ranking homes are sold. Not true; ranking doesn't really change as homes are sold since new listings come on the market every day. If you're 15 today, its likely you'll be 15 a month from now.

Prevention is always better than a cure. Increasing your ranking after-the-fact is hard to do, as lower ranking homes simply put get labeled as "house-worn" after the first few weeks and get a lot fewer reviews by online buyers and agents.

You might ask : How do I get in the top five in ranking? That part's really no mystery, go back to the basics:

1. Condition- every repair (roof, painting, landscaping, etc.) "MUST" be done before listing the property.

2. Price- It never makes sense to over price the property. Put the price right from the beginning. If possible have a Pre-listing appraisal (often can be discounted).

3. Staging-Listen to your professional real estate agent as to what buyers expect today. Remember the look of everyday living in a home is likely not the best look for selling. Over furnished rooms can, for example, make a room look small and less attractive. Kitchen cupboards should always be uncluttered.

In summary, nothing beats having your home priced and staged right for selling at the beginning of the selling process.

More in future posts.