[P2assist] Fwd: Green housing sells

Thu, 08 Nov 2001 12:38:03 -0500

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FYI: 
Looks like the tide is continuing to come in for greenbuilding. 
Ron 
 
 
<blockquote type=cite cite><blockquote type=cite cite>Environment moves
up on consumers' housing list 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By
Steve Kerch, CBS.MarketWatch.com 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Last Update: 6:38 PM ET Nov. 2, 2001 
 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
CHICAGO (CBS.MW) -- For real estate professionals, referring to 
buyers as &quot;green&quot;; has typically been in reference to the
expected 
commissions that might ensue. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; But a
growing number of home builders, lenders and real estate 
agents are looking beyond the color of money and embracing green as
an 
environmental philosophy they're passing on to consumers. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;This is the cutting edge, the wave of the future for 
Realtors. 
If you want to be out in front, now is the time to sell green,&quot;;
said 
Pattie Glenn, a Gainesville, Fla. sales agent and president of
GreenSmart, 
a consulting firm that specializes in realty and the environment. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Glenn
spoke here Friday to members of the National Association 
of Realtors in Chicago on the opening day of their annual
convention. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Efficiency is in demand 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; She
told the sellers of existing homes that they have great 
power to influence consumers' environmental choices through avenues such
as 
recommending energy-efficient mortgage products and suggesting
sustainable 
and durable home repairs and upgrades. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; But
the industry as a whole is still early on the learning 
curve, she said. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;;Consumers are searching for value at every price point and 
in 
every housing type. Energy-efficient, green houses offer quantifiable
value 
... through utility savings, more comfort, health and safety,&quot;;
Glenn said. 
&quot;;And they offer more affordability through reduced cost of
ownership.&quot;; 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Realtors and builders have been reluctant in the past to push 
environment-friendly amenities in the face of what's been perceived
as 
lackluster consumer acceptance. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; But
new surveys show that home buyers and sellers are now more 
likely to recognize the value of energy-efficient features in their
houses 
and are more willing to pay extra to have those features. 
&quot;;Sept. 11 has accelerated a shift in values that had already begun
in 
which home buyers are asking for what is real and what is natural,&quot;;
said 
Pam Sessions, an Atlanta home builder who designed an
environmentally 
sensitive building program called EarthCraft House. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
According to a recent survey by Professional Builder magazine, 
the new-home upgrade consumers consider to be the one that matters most
is 
energy efficiency. Nearly 88 percent of those surveyed ranked 
energy 
savings as important. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; And
while upgraded kitchen cabinets came in second place, 
almost 50 percent of consumers said improved indoor air quality was
an 
important upgrade, placing it third in the rankings. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home
buyers in the survey were also willing to part with the 
green to get a green house. Fifty-six percent said they would be willing
to 
spend $2,500 to $5,000 extra for a house that had more energy
efficiency 
and was healthier. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Little
extra cost 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;;A program like EarthCraft House requires builders to make 
changes. It's not just marketing greenwash to make people feel
good,&quot;; said 
Sessions, co-president of Hedgewood Properties. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;;But a high performance house doesn't have to cost the buyer 
any more money. Green homes don't have to look any different. You can
use 
the same creative license with them as with any house. You just have
to 
increase the performance,&quot;; she said. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;;A high performance house doesn't have to cost the buyer any 
more money. Green homes don't have to look any different. You can use
the 
same creative license with them as with any house.&quot;; 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Home builderPam Sessions 
 
 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EarthCraft Houses in Atlanta add only 1/2 to 2 percent to the 
builders' cost of a house, or as much as $4,000 on a $250,000 home, 
Sessions said. But consumers might not see any difference, especially
in 
high-end homes where more costly amenities are already priced in. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;;What we've found, though, is that even if the house costs 
more to the consumer, the savings from the energy features will pay
for 
that price -- or more than pay for it,&quot;; Sessions said. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Annual
utility savings can be substantial, said Karen Kinne, an 
energy-efficient loan specialist with Fannie Mae. A typical house 
nationwide without efficient improvements racks up a $1,912 energy
bill 
each year. But a home that meets the EPA Energy Star guidelines
would 
average just $1,018, she said. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;;Energy costs are one of the largest housing expenses and 
they 
are rapidly increasing,&quot;; Kinne said. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fannie
Mae, the secondary mortgage agency that invests in home 
loans, has created an energy-efficient mortgage program that 
rewards 
borrowers who buy houses with smaller utility bills. The program
provides 
an underwriting adjustment that allows borrowers to qualify for the
loans 
with a lower income requirement than would otherwise be the case. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
mortgages also allow buyers to borrow up to an additional 
15 percent of the price of a home in order to make energy improvements
once 
they move in. Those improvements must be completed within six months
of 
closing. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
addition to savings on monthly bills and mortgages, buyers 
of green homes also benefit from reduced maintenance costs and from
the 
healthier interior environment, proponents said. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Thinking green 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Among
the features that make a house &quot;;green:&quot;; 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
a.. Products that have longer warranties, such as 
floorboards with 40-year guarantees or windows with lifetime
warranties, 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
b.. House wraps for moisture control with properly sized 
ventilation equipment, 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
c.. Masonry or extra-insulated siding, 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
d.. Sealed ductwork, 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
e.. Use of materials containing at least 25 percent 
recycled content, 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
f.. Installation of energy and water-efficient appliances, 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
g.. Erosion control grading and landscaping, 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
h.. Xeriscaping, landscaping that needs no added watering, 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
i.. Developments themselves can be considered green, for 
instance by being sited within proximity to public transit or by
preserving 
trees within a project. And builders can be green, too, by reducing 
construction waste that must go to landfills, as an example. 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At
least 30 environmentally friendly home building programs are 
under way in the United States, said Peter Yost, a consultant with
Building 
Sciences Corp. Three years ago there were just six, he said. 
 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Steve
Kerch is the real estate editor of CBS.MarketWatch.com in 
Chicago. 
 
 
&nbsp; 
&nbsp; 
Alyx Perry, Forests &amp; Communities
Program 
Western North Carolina Alliance 
70 Woodfin Place Suite 326, Asheville, NC 28801 
(828) 258-8737&nbsp; Fax 258-9141&nbsp;&nbsp;&nbsp;
<a href="http://www.wnca.org">www.wnca.org</a> 
&nbsp; 
Only when the last tree has died 
&amp; the last river has been poisoned 
&amp; the last fish has been caught 
will we realize that we cannot eat money. 
~ Cree Proverb 
&nbsp; 
&nbsp; 
 
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</blockquote></blockquote> 
<div>Ron
Townley<x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab><x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab><x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab><x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab>Ph:
(828) 251-6622</div>
<div>Land-of-Sky Regional
Council<x-tab>&nbsp;&nbsp;&nbsp;&nbsp;</x-tab><x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab>Fax:
(828) 251-6353</div>
<div>25 Heritage
Drive<x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab><x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab><x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab>ron@landofsky.org</div>
<div>Asheville, NC
28806<x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab><x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab><x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab><a href="http://www.landofsky.org/" EUDORA=AUTOURL>www.landofsky.org</a></div>
 
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