"Real Estate & Building Green Homes"

By: Jill PageThe housing market is beginning to show that consumers want "energy efficiency in their homes, indoor air quality and lower energy bills" (Listing Service Will Note Green Homes, 2006). Unlike what many people may think, it is not a only a small group of radical consumers that are demanding these features, but mainstream buyers as well.

Building sustainable homes includes adding features such as "non-toxic paint and finishes, wheatboard cabinetry, low-flow showerheads and toilets, wood floors of Brazilian cherry, Caribbean walnut and other plantation-grown varieties, high-efficiency heating and cooling systems, recycled and locally obtained building materials, rain and waster water captured for toilets and landscaping, and panels that double as sunshades and solar power generators" (Building 'green' reaches a new level, 2006). These features are not only important for the environment, but also controlling energy costs and keeping building costs low.

Rising building costs are a factor in the increase in home prices due to the demand in markets besides the United States, such as China. By implanting green building techniques such as using locally obtained building materials and other renewable resources, capital costs can possible be decreased and home prices do not increase.

As real estate professionals it is our ethical duty to encourage the building and marketing of 'green homes'. Recently, the Portland, Oregon Regional Multiple Listing Service added the ability to search for homes based on green certifications and specific aspects the home has that make it green, such as the features discussed above.

Everyone in the real estate industry needs to work together to promote green building. Appraisers can note the value in the home based on the full-life circle of the home and the savings in monthly energy and maintenance costs. If lenders begin considering not only PITI (principle, interest, taxes, and insurance) as monthly costs of home ownership but also EM (energy and maintenance costs), buyers may be able to afford more home based on their monthly savings.

Buyers will enjoy the facts that green homes will save them money and maintenance but also add benefits such as comfort and health. These benefits will mean more to the buyer than explaining the actual components of a green home. (Oliver, 2006)

Real estate professionals need to not only educate buyers, but also builders and developers. If custom builders are informed and know how green building will affect their bottom line they will be more inclined to build and market sustainable homes. Builders may learn that the cost of building a green custom home is very similar to building a conventional, non-sustainable custom home.

Green homes will benefit first-time home buyers and lower income families due to lower monthly costs. As we have seen with the adjustable rate mortgage and interest only mortgage craze, buyers are interested in keeping their monthly costs low. Living in a green home will contribute to lowering the monthly costs of owning a home.

Besides residential green building, commercial green building has shown additional benefits. These include but are not limited to "resource efficiency, energy efficiency, pollution prevention, harmonization with the environment, and integrated and systemic approaches" (Beard & Roper, 2006). These benefits lead to increased productivity and decreased costs therefore increasing the bottom line.

Professionals throughout the real estate industry need to promote green building and can even use it as their niche and a marketing tool to help them become leaders in their