The real estate market is pretty soft across the nation right now. In
some areas the real estate situation is truly dismal, with bank owned
repossessed properties flooding the market. For the right properties, a
green remodel may get buyer's attention and even allow a seller to
attain a higher selling price.
If you happen to be a property owner selling a home in this market, it
can be a huge challenge to gain attention in many areas. My wife and I
have a bit of a side hobby right now--Craigslist real estate ads.
We are preparing to relocate both our home and our business within the
next few years and we are doing a lot of research to choose the next
town we want to call home. We have narrowed our choices down to the
Pacific Northwest, but the specific town is still up in the air. We
each spend a fair amount of time looking at Internet real estate
listings. Over the last year, we have watched the same homes listed
over and over. As the months tick away, the pictures get better, the
descriptions more elaborate, and the asking prices plummet.
Some of the properties we've been watching are in desirable
neighborhoods of beautiful towns, yet they fail to sell. Many of the
homes that are languishing on the market have obviously not been
updated in many years. Clearly, these homes could benefit from a
general refreshing, a little judicious remodeling, and, at the least, a
paint and floor covering upgrade. But the question of whether a little
updating will really be enough to gain the attention of buyers in this
flooded market should be in the forefront of every seller's mind.
Enter the Green Remodel
Some home owners are taking a slightly different approach to the
general paint and paper surface remodel to get fickle buyer's
attention--The Green Remodel.
Green remodeling can take a variety of forms, ranging from as little
effort as a quick cleanup no VOC (volatile organic compound) paint and
reclaiming long-covered hardwood floors, to an extensive home redesign
with SIPs (Structural Insulated Panel) additions, active solar power
systems, triple pane windows, skylights, water catchment systems, and
new eco-friendly insulation.
For the right home in the right situation, a complete green remodel can
not only garner the attention of buyers, it can also mean that the
selling price can be substantially higher. Some real estate
professionals have suggested that a home that has been updated with
well thought out green features can see selling prices as much as 25%
higher as compared to comparable non-green homes.
At the very least, when the real estate market does recover (and
despite the glum news reports, it really will recover) the demand for
tastefully remodeled homes with a focus on healthful interior
environments, energy savings, and low environmental impact will likely
far exceed the average demand for homes.
Green Flipping
Until the credit debacle and subsequent collapse of real estate markets
across the nation, the speculative practice of flipping properties with
quick surface remodeling had become all the rage in many areas of the
country. As the media has extensively covered, many home flippers were
left holding notes on largely worthless properties when the whole house
of cards came crashing in. For the most part property flipping has
become a thing of the past, but there may still be hope for remodelers
who are willing to invest the time, thought, planning, and effort to
create green homes.
A green home remodel or green flip is not a quick buck proposition that
was so widely documented in the news or on any number of reality cable
television shows. A well thought our green remodel is going to mean an
investment of both time and money.
Here
are a few important points to consider when planning a green flip or
green remodel:
- Evaluate the
property for the appropriate level of remodeling.
A small home in a
nondescript working class subdivision of an economically depressed city
(there are a lot of them out there) may benefit from some green
elements in a surface refreshing, but it would be very easy to quickly
outstrip any possible hope of financial gains a total remodel would
achieve. Careful planning is truly the only way to approach a green
remodel on speculation of a sale.
- Evaluate the
cost of each decision.
Some green remodeling
decisions are easy as they involve little extra expense with a big
psychological payoff for prospective new owners. These elements include
low or no VOC paints and finishes, electrostatic HVAC filtering
systems, hard surface flooring choices, attic venting, and attic
insulation.
Other decisions may be financially appropriate for the right property
and location. Choices that are "on the fence" for payoffs include new
high efficiency heating and cooling systems, whole house ventilation
systems, solar power, solid surface counters, wall insulation,
skylights, and new windows.
- Check local
reimbursement programs.
Many states or utilities
maintain reimbursement programs for energy efficient upgrades. It may
be possible to enjoy significant savings on major upgrades such as
solar power systems or energy efficient windows.
- Reuse
materials when possible.
Material reuse can take a
bit more time during the demolition phase of a remodel, but it is the
right decision in terms of global impact (it is always better to reuse
something that is on hand than it is to buy new) and impact to the
financial bottom line. Items that should be reused if at all possible
include hardwood flooring, cabinetry, tile, doors, and trim. Simply
repainting or refinishing many materials can save a lot of money and
can have a big impact on the appearance of a home.
- Document
everything with the idea of presenting the choices made to prospective
owners.
It won't matter how many
ecologically sound remodeling choices you have made or how much extra
money and effort you've expended in a remodel if house hunters don't
know about your efforts. Put together a presentation that documents the
remodeling process, complete with lots of photos and at least a few
paragraphs about why the major decisions were made the way they were.
Be creative, or find someone with a creative flair to put together a
presentation for you. One of the most effective tools for home
presentation is a simple three ring binder portfolio documenting the
green elements that make up a home and how material decisions will
positively impact the new owners who will call the place home. When
planning your presentation, think about clothing catalog copy. Consider
that most successful retail clothing companies sell a lifestyle rather
than clothes. Your new green home is representative of a lifestyle as
well--Sell it!
Tell a story that ends with the
new owners living happily and healthfully in their new green home.
