Energy-Efficient Homes More Desirable Than Others

Among agents and brokers, 63% said that promoting energy efficient features in the home listing is a valuable tactic to sell a home, according to a new National Association of Realtors (NAR) report on residential sustainability. 

"While each area of the country has a unique climate and community resources, Realtors® are finding the need to embrace their clients' sustainability interests," said Jessica Lautz, NAR Deputy Chief Economist and VP of Research. "Buyers often seek homes that either lessen their environmental footprint or reduce their monthly energy costs. There is value in promoting green features and energy information to future home buyers." 

According to the NAR, half of realtors said they were directly involved with a property with green features—on the buyer or seller side—in the past 12 months. Thirty-two percent of agents and brokers reported that their multiple listing service had green data fields, 37% of which used those fields to promote green features, 24% to promote energy information and 14% to promote green certifications. 

About 50% of consumers indicated they were at least somewhat interested in sustainability, while 32% of realtors were concerned about the future effects of climate change on the real estate market. Nearly one-fifth (17%) of respondents said a significant portion (between one-quarter to more than three-quarters) of their clients consider environmental risk in the purchase process. In addition, 14% of agents and brokers had clients ask for advice about energy efficiency upgrades very often or often. 

"The first words of the Realtor Code of Ethics are simple, yet powerful, and well understood by members: 'Under all is the land,'" said NAR President Kenny Parcell, a Realtor from Spanish Fork, Utah, and broker-owner of Equity Real Estate Utah. "Good stewardship of the land—and the built environment—is critical to the real estate industry. Realtors who can speak with authority about a home's sustainable features and convey the value, health benefits, energy savings, durability and operation costs provide a major advantage in every market." 

The NAR went on to say that the green home features which Realtors believed were most important to clients, include windows, doors and siding (39%); proximity to frequently visited places (37%); a comfortable living space (37%); and a home's utility bills and operating costs (25%). In terms of sustainability issues and considerations in their market, agents and brokers mostly listed understanding how solar panels impact a transaction (35%), understanding lending options for energy upgrades or solar installations (33%) and valuation of solar panels on homes (32%).