What exactly is green certification and how does it affect the value of a house? This is something homeowners should be thinking about especially when building or renovating a house. Does having a green certification increase or decrease the value of a house?
Green certification is basically having a house categorized as complying with standards that are deemed necessary to be classified as environmentally-friendly and sustainable. Green homes must also be able to manifest efficient use of water, energy, and building materials. There are at least 3 organizations that certify green homes including the National Association of Home Builders (NAHB), Energy Star – a joint program of the US Environmental Protection Agency and the US Department of Energy, and the US Green Building Council (USBC) through the Leadership in Energy and Environmental Design or LEED.
These three organizations agree in specific areas. A good green score is obtained with consideration of the over-all efficiency of a home and not only in one particular area. A home that seeks green certification has to be inspected before being given the nod for certification. Granting that a homeowner was able to successfully obtain green certification for his or her home, does this equate to an assurance of a higher value for the home?
Based on a study, green-certified homes have a higher value compared to non-certified homes. The same study showed 60% of consumers say that green and energy-efficient amenities are what they want for their homes. Statistics tend to support this higher resale value of green-certified homes as well as the lesser time it is placed on the market compared to conventional homes.
The higher value of homes is seen as an effect of the advantages offered by green homes such as lower utility bills, more stable indoor temperature, healthier indoor air, and better constructed homes due to higher quality materials. These advantages are very attractive to house buyers because of the recognized long-term benefit. It also does away with the need to improve the house in the future to be considered green.
Sellers of green-certified homes are banking on these advantages for prices to remain up. There are certain concerns that the possible cost of greening homes may be too high to offer a satisfying recovery rate. Banks also do not take greenhouse certification into consideration when it comes to mortgage. So if someone were to ask if I am expecting a higher value when I sell my house, I most certainly do since I am confident that more and more people are learning to appreciate the long-term benefits of a green home.