Just in the past year and a half we have gone from the majority of people not ever hearing about Green Building/Green Homes- To the majority of people wanting to go Green in their homes in one way or another. What I find fascinating about this movement is that it is truly a Consumer Driven market right now.
I mean, who would NOT want a more Energy Efficient, Healthier home right?
Now, I can't speak for all areas of the Nation, but in Houston, this has created some what of a...Frustration. There are more people looking for a 'Green' New Construction Home (key word New Construction) than there really are homes on the ground. We can find Energy Efficient, not a problem. But when we start adding in the Low/No VOC Paints, Caulks, Products- Recycled Content- Renewable Energy and so forth...it is few and far between sometimes.
Then if someone really wants to build, we take in to consideration the cost of New Construction for a TRUE 'Green' built home, LEED for example, this is right now in Houston- quite high compared to what most people are looking for when you take the size of home desired, features that they want IN the home...we are looking at about $200 per square foot NOT counting the cost of land vs. $80-$120 for resales or just Energy Efficient or minimally Green. That is a pretty big leap.
Not taking in to consideration the cost, part of this is a numbers game. How many buyers are there vs. New Construction Inventory homes right now? Probably quite a few more buyers.
But what if we change that scenario to How many buyers are there vs. Homes on the Market right now? Now we are talking!
On my other blog I have just finished a series called the 'Hypothetical Remodel' where myself and some of the Green Building Experts around town decided to put something together on how exactly Homebuyers can Purchase and existing Home with the Floorplan, Location and other features desired, use a Conventional 30 Year Fixed Renovation Loan to 'Green' up the house.
Remember how the cost difference was between $80 and $120 per sq ft? That is a lot of room in many cases to be able to Renovate about any home out there to YOUR desire. It would have the Cosmetic features such as tile, countertops, etc that you want in a home with everything else to fit the Buyers needs.
Here is a basic breakdown of how it works:
- Make sure that you qualify for a Conventional Loan for a desired purchase amount
- Find the home you want..with a great imagination of course of what the home COULD look like
- Once we get the contract written, call out some contractors and designers!
- An Energy Audit is Essential here also to get it more Energy Efficient
- Get the bids for the work, the home will be appraised for AFTER Renovation Value
- Once you close on the home, the work should be complete in no more than 60 Days
Personally, I forsee a lot of interest in these kind of loans over the next couple of years. I think we will start seeing more and more banks offering them. For now, I have only found ONE in the entire State of Texas. Why? Because this is still a 5% down Conventional Mortgage and you do not have to pay Home Improvement Loan like Interest Rates..5.5% as of last Friday!
This is all just another way to Go Green when buying a home. If you would like to read the Entire Series on how we went about doing this, Master Bathroom Designs and ALL- You can find it in the link below. I put all 7 parts of the Series in one PDF E-Book for Convenience. Just click below:
How To Buy a Home and Renovate it GREEN
Also, keep your eyes out for some exciting information about what is coming in 2009 through TurningHoustonGreen! An 8 Part Series of Webinars starting at the end of January with myself and Houston's very own Michael Strong with Brothers Strong going in to detail about how to Green up the Existing Home!
If you are thinking about Buying a home to Green Up, or just thinking about 'Greening UP' the home you already own, you may want to tune in!
