Green Homes Sell for a Premium!

by THE WAV GROUP on June 17, 2009

In a study released earlier this week by the Earth Advantage Institute demonstrated that homes in the Portland, Oregon market actually sold for 3 to 10% higher than average if they were green certified. It is very encouraging to see that consumers are starting to appreciate the value of green homes and reflecting it in the purchase price and ultimate the sales commission for the agent.

This
investigative study is part of a larger regional effort conducted by
nonprofit and local government organizations. These efforts have
involved some of the leading green building organizations in the
Pacific Northwest, including Built Green Washington, Cascadia Region
Green Building Council, Earth Advantage Institute, Master Builders
Association of King and Snohomish Counties, Master Builders Association
of Pierce County, the Northwest Eco-Building Guild, Olympia Master
Builders, and Washington State Department of Ecology.

The
findings are based on an analysis that directly compares homes that
were certified with appraiser-approved comparable homes. Home
certifications included Earth Advantage®, ENERGY STAR®, Built Green®,
and LEED® for Homes. Certified homes in the four-county Seattle
metropolitan area sold for 9.7 percent more than noncertified homes.


In
the five-county Portland area, homes also achieved a price premium of 3
to 5 percent more. Homes with an Earth Advantage or comparable
certification also sold more quickly in the Portland metro area by
about 18 days.

“This
investigative research demonstrates the clear value of certified homes
to homeowners and professionals in the home construction and sales
industry,” said Sean Penrith, executive director of Earth Advantage
Institute. “The results of this study will help us in our certification
outreach efforts by supplying our constituents with specific data on
the value of sustainable home standards.”

The
report, Certified Home Performance: Assessing the Market Impacts of
Third-Party Certification on Residential Properties, also features home
builder interviews and consumer surveys.

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