We know that all real estate is local, but here are some very interesting statistics from the Northwest Multiple Listing Service regarding third party certified Green Homes. The following is an excerpt from an article that appeared in The Residential Energy Services Network's (RESNET) September Newsletter.
A recent analysis of the Northwest Multiple Listing Service (MLS) of King County, Washington demonstrated that third party certified energy efficient homes faster and have higher values.
For the past year the Northwest Multiple Listing Service has included information on a home’s green deign features to its property listings database. The MLS listings also indicated whether the home was third party verified. The MLS is a critical tool used by real estate agents in showing homes to potential homebuyers and by appraisers in identifying comparables in developing the market appraisal for the home.
The Seattle based GreenWorks Realty completed an analysis of the market performance of homes that were certified as energy efficient green homes in the MLS. The analysis found that certified energy efficient homes in King County sell in up to 18% less time and for 28 – 37% higher value per square foot than non-certified homes. Single family certified homes sold in 18% less time and were valued at 37% more per square foot. New certified condominium units were valued at 28% more per square foot.
Below is a comparison of new construction certified green homes to non-certified homes sold in King County from September 2007 through May, 2008:
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King County New Construction Sales 9/07 - 5/08
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Certified
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Non-Certified
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Summary
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# of single-family homes sold
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424
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2113
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16.7% of total sales
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Median sale price
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$487,000
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$470,000
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4% higher value
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Median square footage
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1,751
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2,322
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25% smaller
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Time on market
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45
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55
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18% less time
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Price per square foot
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$278
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$202
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37% higher value
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|
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# of condominiums sold
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100
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435
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18.7% of total sales
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Median sale price
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$355,475
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$345,000
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3% higher value
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Median square footage
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811
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1011
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20% smaller
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Price per square foot
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$438.32
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$341.25
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28% higher value
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Information provided by GreenWorks Realty using data from NWMLS. Chart not created by NWMLS
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GreenWorks Realty founder Ben Kaufman led the charge to introduce energy efficiency and green certification search categories in the market’s multiple listing service. He commented, “The new data shows buyers are indeed going green and certified homes have more value. This is good news for our kids, our communities, our planet … for all of us. We also see green homes command a higher return on investment. This information encourages savvy remodelers and builders to make green a priority.”
Aaron Adelstein, Executive Director of Built Green of King and Snohomish Counties had the following comments on the study, “Until now, the idea that people are willing to pay more for environmentally-certified housing has mostly been based on surveys and expectation. Now we have the first hard data to back up what many of us have believed for a long time – green homes have greater value.”
As I noted in my blog on April 17th 2008, the Building Contractors Association of Southwestern Idaho (BCASWI) has formed a Green Building Council to promote the NAHB Green program to educate our members and consumers and encouraging builders to adopt the NAHB National Green Building Program which offers innovative, resource-efficient building techniques, while preserving affordability. We recently offered the NAHB University of Housing’s Green Building for Building Professionals course, leading to the Certified Green Professional designation - your assurance of commitment to continued education of the green building process.
So if you have been thinking about building a new Green home but have been hesitating because of all the media reports about falling home prices, this data should help mitigate those concerns. You won’t find any third-party certified Green homes in the “short sale” listing on the MLS.
Chuck Miller GMB CGB CGP MIRM CMP MCSP CSP
President / Builder – Chuck Miller Construction Inc.
(208) 229-2553