Does owning a "Green Home" matter??

After completing a recent survey for the Canadian Real Estate Association I started thinking more about this "Green" issue. I started wondering does owning a "Green Home" matter? Actually, yes it does. Not strictly as an environmental good thing but for day to day living and increased equity I think yes putting green initiatives in your home make a difference.

From a selling stand point should you change the furnace out?
Yes. In today's competitive market having infrastructure such as a new furnace can help make the difference in your property selling. It's one less thing for the buyer to do. If your home is likely to fall in a price range that is filled with first time buyers do those first time buyers really have more money to set aside for a new furnace??

Looking at it from a buyer stand point, most would not pay more for a home with a newer furnace (mid efficient), however they would want to pay less for a home with an old furnace. That is to say a buyer would use the old furnace as a reason for them to pay less. Justify their low offer so to speak. In a sense a buyer would want the seller to have done the work and invested their money in a new furnace, and upgraded insulation etc... rather than see it as an opportunity for themselves to increase their long term equity position.

Other "Green" aspects that buyer wants in a home?

  • On demand hot water or tank less hot water system. Nice to have unless it is an older home with conventional plumbing. (ie no dedicated lines and pressure balance manifold)
  • R 40 insulation or higher in attic
  • Added insulation in walls and siding
  • New windows (no more aluminum sliders and wood panes)
  • Direct vent dryer hose
  • Ffinished basement (insulated)

Perhaps the more accurate question is will owning a "Green home" increase my bottom line when I sell?

What green initiatives would you like to see on your home or your next home?

Your Friend in Real Estate
Patrick Galesloot

Some Green Resources:

  • Canada Green Building Council
  • the Alberta Chapter of the Green Building Council
  • Canada Mortgage and Housing Corporation

Patrick Galesloot

Patrick Galesloot

CENTURY 21 Advantage
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