Julie
@juliekn
4Following
4Followers
Canada
Joined Oct 10, 2010
The green real estate market is being repressed by appraisals.
Oct 8, 2010
Developers would like to see green real estate projects jump rapidly. While environmentally friendly technologies are rapidly rising, there is one aspect which still has not fully kept pace with the emergence of green housing on the property market the issue of appraisals. Think about it you are going to build a standard $500,000 house. You decide that you want the real estate to be more environmentally friendly, therefore you ask your architect to design the new house so it makes use of the sunshine and you put in high quality insulations and solar panels. Now going green doesn't come cheap meaning these green options are going to increase the build charges to $600,000. expert I see even though there is a rise in build cost going green does make a big difference Look at it this way, green houses sell over 20% more rapidly with an 8.5% increase on list price, according to Green Work Realty report. Sadly, when you deal with an appraiser having little or no experience with green real estate technologies (and that's quite probable, especially if you are among the green pioneers in your area), your home's value will most probably be underestimated. Until appraisers gain the experience, there is not a lot that can be done. Anyway, I believe there will be strong initiatives soon to standardize indicators of environmental and energetic efficiency, which will certainly help appraisers (and future owners) to move forward. Green property is not only about the environment, it's also about money. When looking at buying a car, one of the first things you research is its fuel consumption, how many miles to the gallon does it do. Therefore it is only natural progression when using the same analogy when buying a house.