Craig Foley is the Chief of Energy Solutions for RE/MAX Leading Edge, and a co-founder of inCharge Energy. Craig is also the author of the first report on hi...
Join Home Energy Pros
Hi James, thanks for your kind words.
Before I answer the question about the market value of distributed generation and EE improvements, I think it's worth talking about some of the challenges my industry faces in addressing these issues. it is not uncommon for the average agent to answer the question with a quick roll of their eyes and a under the breath "There is no value" response. That kind of response is fairly common here in MA, but I am guessing it is true throughout the U.S. The response is understandable when you consider we are in the midst of an energy paradigm shift; assumptions about how we produce and consume energy are rapidly changing. Terms/acronyms like solar PV, ASHP, PPA, AFUE, HERS rating, energy performance scores take traditional agents/brokers out of their comfort zones. The natural reaction for many is a derogatory statement involving the word "green." That's too bad; it holds back market transformation because of short term thinking and insecurity. If a buyer or seller hears a RE agent reply like that, my advice is run in a different direction as soon as possible.
The general rule of thumb is that for each dollar saved by EE improvements it equates to roughly a $15-20 value at the time of sale. When I investigated this issue in the MA market in 2012, I found this to be in line. I work for a large RE firm in MA that had 12 offices in the Greater Boston area at that time. Hearing complaints from several of the agents in our offices that buyers didn't want to buy homes heated with oil I investigated. Given that the EIA projected that the average home heated with oil would cost the homeowner $2553, and that the average homeowner that heated there home with NG would cost $1007 for the 2012-2013 heating season, I wanted to see if there was a price premium buyers were paying for homes heated with NG. After studying all the homes that sold in 2012 in our 12 communities I found that there was an $11 per sq ft price premium for homes heated with NG. For a 2000 sq ft home this equates to a $22,000 premium. Using the $1500 delta between oil and NG, that equates to for everyone dollar saved in the NG home it equated to $14.67 of value.
Very well done presentation Craig. Definitely worth watching. I like your statement that we each have both an opportunity and an obligation to reduce our energy consumption. It would be interesting to hear from a realtor's perspective how much value was added by the energy efficiency improvements and distributed generation system installed at the home you mentioned.
Welcome toHome Energy Pros
Sign Upor Sign In
Or sign in with:
Started by Mary Sinkler in General Forum. Last reply by Dennis Heidner 12 hours ago.
Started by tedkidd in General Forum. Last reply by Nate Adams 16 hours ago.
Started by Ken Kalke in Best Practices. Last reply by Sean Lintow Sr on Saturday.
Started by Wayne Melancon in HVAC. Last reply by Ken Kalke on Friday.
Started by Chloe Chapman in General Forum Jan 5.
Added by Tom White
Added by Barbara Smith
January 19, 2017 from 1pm to 2:30pm – Eastern Time
January 23, 2017 to January 24, 2017 – Portland Marriott Downtown Waterfront
January 24, 2017 at 9am to January 25, 2017 at 12pm – Bristol Community College at Commonwealth Landing
January 26, 2017 from 1pm to 2:30pm – Eastern Time
February 8, 2017 to February 10, 2017 – San Diego Convention Center
Welcome to Home Energy Pros – the unique digital community by and for those who work in the home energy performance arena.
Home Energy Pros was founded by the developers of Home Energy Saver Pro (supported by the U.S. Department of Energy) and brought to you in partnership with Home Energy magazine. Home Energy Pros is sponsored by the Better Buildings Residential Network. Please honor our Guidelines
© 2017 Created by Lawrence Berkeley National Laboratory.
Report an Issue |
Terms of Service
Please check your browser settings or contact your system administrator.