New American Funding Blog

Understanding the "Green Home"

By Courtney Lynch   |  December 15, 2015

Energy efficiency is important to many interested buyers and homeowners. Energy efficiency is becoming more important to many interested home buyers. Whether you're interested in leaving a smaller carbon footprint behind, or you simply want to save a little money on your energy bill, going green is appealing in a number of different ways. 

A recent study published by the National Association of Home Builders helped solidify specifically what individuals believe purchasing an energy-efficient home entails as well as their preferences. 

"This new study is an incredibly useful tool to help builders and remodelers determine not only consumer attitudes towards green homes, but also which green features consumers care most about," said the NAHB Chairman Tom Woods, a home builder. "We have seen incredible growth in green and sustainable building over the years, and the results of this survey only further solidify the continued consumer interest in green building, and which attributes matter most [to] these buyers."

Going green is not a fad you'll want to dismiss. Many homebuyers are interested in purchasing houses with greater energy efficiency, and embracing it is critical. 

The NAHB study reveals energy efficiency is key 

According to the study, 88 percent of participants indicated energy efficient home features influence the final decision regarding a new home. In addition, 85 percent of individuals want to invest in a home with lower operating costs - with a green home, monthly energy bills are lower, which helps improve affordability. 

Saving some green by going green 

Alliance to Save Energy indicated Energy Star appliances can save homeowners as much as 30 percent on their electricity bills. Individuals looking to save a little money when they invest in a new home will benefit greatly from buying a property that offers green features. 

Interested buyers often evaluate the energy efficiency of a home when deciding whether to make an offer. The more efficient, the more likely they will be to pursue the home further. 

If you are trying to sell a property, it may be worthwhile to invest in new appliances that embrace this model more closely. You will likely cultivate more interest in your property. 

Home renovations that matter 

When upgrading a home, investing in projects that boost a property's energy efficiency are worthwhile. According to U.S. News & World Report, there are a number of improvements you can make that will save you a great deal of money. In addition, if you are attempting to sell your home, investing in these upgrades will help entice great interest in the property. 

One upgrade that won't cost much money is to install low-flow water fixtures in your home. This inexpensive improvement can save as much as $145 annually.

Adding more insulation is another way to affordably increase a home's energy-efficiency. This project can easily be completed by yourself, or you can enlist the help of a professional. Install a bit more in your attic to ensure heat or air conditioning does not escape from the roof of your home. 

A programmable thermostat is another way you can save a great deal of money on energy costs each year. In fact, with this device, you can save as much as $150 each year. By adjusting the temperature as you come and go, you can reduce your monthly energy bill dramatically. In addition, this feature will likely appeal to interested homebuyers if you plan to sell your home. 

Tax breaks for energy efficiency 

If you invest money in your home to ensure it is greener, Uncle Sam might reward your efforts to make the planet a little healthier. According to Energy Star, both existing homes and new construction can qualify for federal tax credits

While not all products or upgrades will lead to a tax credit, a great deal will. Geothermal heat pumps, small wind turbines and solar energy systems can lead to 30 percent or the cost of installation in tax credits this year. 

Find out which specific improvements lead to a tax credit, and reap a few of the financial benefits associated with going green. 

Energy efficiency is an important aspect of a home, according to many of today's interested buyers. Adapting to these preferences will help interested homebuyers appeal to a wider audience of potential buyers. In addition, a little energy efficiency can lead to substantial savings - which makes everyone happier. 

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