What is Green Worth? Unveiling High-Performance Home Premiums in Washington, D.C.
Homebuyers are not only increasingly interested in high-performance homes, or homes incorporating green features, but they are also willing to pay more for them, according to a this study from IMT and the District of Columbia’s Department of Energy and Environment (DOEE).
"What is Green Worth? Unveiling High-Performance Home Premiums in Washington, D.C.," finds that high-performance homes marketed with green features (such as a solar photovoltaic array or LEED certification) sell for a mean premium of 3.46 percent compared to homes without green features. In pairing high-performance home sales with multiple non-high-performance home sales, the study also identified current barriers in the real estate transaction process that may be preventing home sellers from receiving the full market value of their high-performance homes. While the study’s comparisons and conclusions clearly demonstrate that homebuyers are willing to pay more for high-performance homes, the multiple listing service, or MLS, does not adequately collect and showcase data on green features. In addition, the market is in need of real estate professionals with knowledge of green building principles and practices in order to better market high-performance homes.
“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, SRA, LEED Green Associate, 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.”