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Are homebuyers willing to pay more for a residence if it incorporates green energy features? A new study covering the Washington, D.C., housing market affirms that question.
In the study "What is Green Worth? Unveiling High-Performance Home Premiums in Washington, D.C.," conducted by the Institute for Market Transformation and the District of Columbia’s Department of Energy and Environment, high-performance homes marketed with clean tech features (including solar power panels or a LEED certification) were able to sell for a mean premium of 3.46 percent higher than properties without these features.
“As of September 2, 2015, the District had 457 LEED-certified homes, and as of August 2015, 329 new ENERGY STAR Homes had been certified,” the report stated. “To date, while no homes or multifamily buildings in the District have been certified through the ICC 700 National Green Building Standard (NGBS), several multifamily buildings are in the process of obtaining this certification.”
But the study also noted that the local multiple listing service did not provide for the proper showcasing of green features on listed properties, while many real estate brokers were found to have an inadequate understanding of green building principles.
“This study, one of the first of its kind, employed an appraiser-led technique to value green features in homes and it produced a credible set of quantifiable results” said Sandra Adomatis, founder of Adomatis Appraisal Service and author of the report. “These findings are critical to support the growing movement to properly value high-performance homes.”