IN THE FUTURE, GREEN WILL BE THE “NEW NORMAL.” Demand for green housing has already grown. According to the National Association of Realtors, 46 percent of buyers would like a green home, whereas only 2 percent of existing American homes contain green features, according to a McGraw-Hill Construction Information Group report released in October 2007. Therefore, it makes no sense for you to build a new house any other way.
Right now, a majority of Americans consistently respond in surveys that they’ll pay more for homes that save energy, use recycled or sustainable materials, improve air quality, and save resources like old-growth trees. Home values increase by roughly $20 for every $1 in annual energy savings, and green materials can up the value even more.
Building a green home means setting higher standards for energy efficiency and air quality, using sustainable or recycled materials, and keeping waste to a minimum. And it’s not necessarily more expensive. According to What’s Working (www.whatsworking.com), a 15-year-old company that offers training on green construction, a green home can be built for less than 1 percent of additional cost when compared to a traditional home. And you’ll really see the difference when you’re ready to sell.
Granite countertops and cherry cabinets are yesterday’s ideal. Tomorrow’s buyers are going to want low-VOC paint, recycled glass tiles, sunflower-based panels (instead of plywood), and recycled marble floors. And why shouldn’t they? “Green” materials look amazing, and as I said in this book’s introduction, living in a green home has helped me feel better than I have in years.
If you’re trying to sell right now and having trouble, consider green upgrades that will let your house “tell a green story” that makes it irresistible to buyers.
Build Green (Buy or Rent Green, Too)
GENERALLY SPEAKING, THE GREENEST REAL ESTATE option is using what you’ve got, so consider remodeling instead of building new. If you intend to build green, start with the U.S. Green Building Council’s Green Home Guide (www.greenhomeguide.org). You’ll find definitions, resources, and inspiration for building or remodeling a green home.
It is important to consider materials. Sixty percent of all the trees we log domestically are used to build houses, and the average new 2,000-square-foot home requires an entire clear-cut acre’s worth of wood (several hundred to several thousand trees). The typical home also uses nearly 17 tons of concrete, which contains cement—a material responsible for 5 percent of all greenhouse gas emissions worldwide.
INCREASE
your home’s resale value by building green.
SAVE
a clear-cut acre of trees by using less wood or alternative materials.
Use wood that’s sustainably grown, or consider alternatives to wood, such as straw bales or structural panels made of recycled polystyrene. Before you buy bamboo, a popular new material, ask whether the bamboo has been treated with formaldehyde and if it comes from a truly sustainable source. For flooring, consider cork—which is sustainable and durable—as an alternative.
Skip vinyl. Twice as many homeowners choose vinyl siding as any other material—despite the fact that the production of vinyl is incredibly toxic.
Finally, to improve indoor air quality, use low-VOC paint, which cuts down on “volatile organic compounds,” ingredients that can cause health problems, including cancer.
GO GREEN ACTION STEPS
Get the U.S. Green Building Council’s Green Home Guide at www.greenhomeguide.org. The USGBC also runs the LEED (Leadership in Energy and Environmental Design) certification program, which is a voluntary rating system for green buildings.
Browse listings for green architects and builders at sustainable-design company Vivavi’s Modern Green Living Home Directory, http://www.moderngreenliving.com. If you’d rather buy green or if you are renting, Vivavi also lists realtors.
Choose greener materials.
Visit your local used building materials yard for all sorts of interesting materials, from structural elements to windows and doors to design features like siding from an old barn or floors from a school gym. For resources that will help you find used building materials, visit www.buildingreuse.org/directory. The nonprofit Habit for Humanity operates a series of retail material reuse stores called ReStores. For a directory, visit www.habitat.org and enter “ReStores” in the search box.
Get a Green Mortgage
LUCKILY, THE GOVERNMENT WANTS TO HELP YOU build green. Energy Efficient Mortgages (EEMs) are available as part of a federal program to help homebuyers finance energy efficiency upgrades and purchase energy-efficient homes. With an EEM, you can take out a bigger loan in order to buy a greener home—or you can use the money in the form of a home equity line of credit (HELOC) to pay for improvements to the efficiency of your existing home.
SAVE
$1,000 on closing costs.
INCREASE
your home’s value by 5 percent.
The idea is simple. An energy-efficient home costs less to operate. With cheaper utility bills, the bank knows you’ll be able to afford a larger mortgage.
New homes are eligible for these mortgages if the builder certifies that the home meets certain guidelines required by the lender. For existing homes, you’ll need a home energy rating system report (HERS), which costs between $100 and $300. The report will rate the home on an index scale, then suggest improvements and costs. But your improvements will add value to your home. According to Energy Star, a HERS certification showing that a home is energy efficient can increase its value by roughly 5 percent.
GO GREEN ACTION STEPS
Find out if you qualify for an EEM. Check the eligibility requirements at the Department of Housing and Urban Development’s web site. Go to www.hud.gov/offices/hsg; click on “Single Family” and then on “FHA Insured Loans” and then on “Energy-Efficient Mortgage Program.”
For more information on EEMs, and how they can increase your borrowing power, read the Federal Citizen Information Center’s Energy Efficient Mortgage Home Owner Guide. Go to www.resnet.us, scroll down to “Related Sites,” and click on “HERS/EEMS.” Then click on the name of the guide.
Ask your lender if they offer energy-related incentives. Bank of America recently launched their “Energy Credit Mortgage Program,” which offers $1,000 back on closing fees for new homes that meet ENERGY STAR requirements.