Does Cost per Square Foot Matter?

1. In my part of town square footage is a big misleading problem. We have new and old homes listed with square footage that are being advertised as “per owner” this removes the liability from listing agent and these homes have sometimes 400 square foot more than what public records has it listed for and realtors try to justify the price of a home by upping the square foot of a home because a home looks better at $109/per sq.ft. than a home at $126/per sq.ft. every time a home gets listed we like to print out public record documentation and the Realtor new listing and 99% of the time there is a big discrepancy on the square footage. The clue to look out for on a listing is “PER OWNER” this would be a RED FLAG when looking at square footage.

http://www.ubh.com/blog/2014/01/does-cost-per-square-foot-matter/#comment-17045

“Green” Labeled Homes Worth More on the Real Estate Market, Study Says

Capital Home Builders are the first builders of green smart homes in South Georgia. It looks like the green building trend has not reached the South Georgia area. We think if Thomasville, Georgia can still live in the era of horse and carriage they would, but we are changing the way homes are being built in Thomasville and South Georgia by building better homes above minimum code. Green Homes are built above minimum code non-green homes are NOT.......

Researchers from the University of California, Berkeley and the University of California, Los Angeles today released a new study on the economic value of green home labels in the California residential marketplace. “The Value of Green Labels in the California Housing Market” is the first rigorous, large-scale independent economic analysis of the value of green home labels in California. The study found that a green home label adds an average 9 percent price premium for single-family homes in California. Based on the average California home price of $400,000, homes with a green label sell for an average of $34,800 more than comparable homes without a green label.

In addition, the study yields two key insights into the effect of green labels on property values. First, the price premium associated with a green label varies considerably from region to region in California, and is highest in the areas with hotter climates. This trend may indicate that residents in these areas value green labels more due to the increased cost of keeping a home cool. Second, the premium is also positively correlated to the environmental ideology of the area, as measured by the rate of registration of hybrid vehicles. The observed correlation suggests that some homeowners attribute value to intangible qualities associated with owning a green home.

Led by researchers Nils Kok, visiting professor at the University of California, Berkeley, and Matthew Kahn, professor at the Institute of the Environment, Department of Public Policy and Department of Economics at the University of California, Los Angeles, the study examined data on the 1.6 million single-family homes sold between 2007 and 2012 in California. Of these homes, approximately 4,300 were certified with green home labels from Energy Star, GreenPoint Rated, or LEED for Homes.

“In certain regions of the state, we observed a phenomenon we’ve termed the ‘Prius effect’ — a positive correlation between the value of green home labels and environmental ideology, as measured by the rate of hybrid registrations,” said Kok. “In communities with strong environmental values, residents may see green homes as a point of pride or status symbol.”

The estimated $34,800 price premium for green-labeled homes is significantly greater than the price increase associated with other typical home improvements made by homeowners prior to sale, such as home staging. A 2012 survey by HomeGain found that staged homes sold for an average of $2,144 more than non-staged homes, while an upgrade of the kitchen and bathroom was found to increase the sale price by $3,254.

“Environmental ideology was not as strong in some other areas, and yet we still saw a high value placed on homes with a green label,” said Kok. “It appears that a hotter local climate also provides a practical reason to value green homes. With both ideological and pragmatic reasons to go green, it’s no surprise that the popularity of these labels is rising.”

The benefits of green homes include:

• Lower operational costs than conventional homes due to greater energy and water efficiency, which can result in lower utility bills;
• High quality construction, since green label requirements for building materials and techniques often go beyond standard building codes;
• More comfortable and stable indoor temperatures;
• Healthier indoor air quality; and
• Other features that reduce environmental impact such as proximity to parks, shops and transit.

“Increasingly, homeowners who are planning to sell their home are looking for innovative ways to make their home more attractive to potential buyers,” said Robin Gaskins, a realtor who has worked for 10 years in Alameda County. “Particularly if a home already has a number of green or energy-saving features, it really does pay to go the extra mile and get a green label.”

Growing awareness about global warming and the extent of greenhouse gas emissions from the residential sector has increased attention to green building in recent years. Previous research has shown the value of green labels and certifications in the commercial real estate sector. “The Value of Green Labels in the California Housing Market” confirms that the same trend applies to single-family homes.

“The Value of Green Labels in the California Housing Market” has been submitted for presentation at the 2013 Annual Meeting of the American Economic Association and will be submitted to a scientific journal in fall 2012.

http://www.arounddublinblog.com/2012/07/green-label-homes-worth-more-real-estate-market/

15 Spring Bok Ln. Thomasville, GA - A True Top Quality Remodeled With Green Features.

1st GREEN remodel, attractive brick home.Open floor plan 3BR/2BA, 1 bonus rm 4th bdrm & 1 add'l bonus reading rm, GR w/breath taking 18'ceilings w/crown moldings, natural wood burning fireplace, DR w/gorgeous large dbl pane windows w/spectacular 20' ceilings, tiled bathrooms & kitchen w/all appliances, laundry rm, walk-in-pantry, large breakfast area w/large fenced backyard w/lake views.Large master suite features 10' trey ceilings.Master on-suite his/hers walk-in-closets, & sink area, large shower w/jetted Whirlpool tub.Eco-friendly bamboo flrs in foyer, GR & DRm. New roof w/premium material installed in 2011, 4 ton A/C & water heater in 2012.SOLID GRANITE SLAB countertops throughout, green certified forestry custom wood cabinets w/smart stop cabinet doors, drawers & sliding shelves. Watersense fixtures and a new wood back deck for gatherings.Eco-friendly features are not considered in price.Seller holds Realtor Lic. Eligible for 100% USDA Financing.

http://www.trulia.com/property/1082081190-15-Spring-Bok-Ln-Thomasville-GA-31792

Working With a Dual Agency: What You Need to Know - Georgia is a dual Agency State

With a housing market favoring sellers, buyers are resorting to different tactics to get their offer accepted.

Home sales and prices have been on a steady increase over the last few months as the market remains on a stable path of recovery, but low inventory in some markets have created stiff competition—with some areas reporting bidding wars.

To help compete, some buyers are incentivizing agents by offering them the opportunity to represent them as well as the seller. Under these circumstances, dual agents get the full commission as both buyer and seller.

 “One of the best ways to convince the listing agent to take a somewhat- less qualified offer is to let them represent you and give them the commission as well,” says Eric Tan, a RedFin listing agent in Los Angeles. “A lot of buyers are catching on to this.”

In certain real estate markets around the country, inventory is tight and houses are selling above market price. On top of that, foreign investors are jumping into the market and making all-cash offers. If buyers can lure the real estate agent into their corner, experts say the commission potential could help them win a home—even if they don’t have the best offer.  

While it could work in winning a home, working with a dual agent or agency may not always be in the best interest of both the buyer and the seller. After all, if the real estate broker is representing both the buyer and the seller, each party will never fully know whose corner the agent is actually in. 

“In very rare circumstance the dual agency makes sense,” says Tan. “We’ve done a lot of market research and according to the data, on average you lose about $5,000 in the sale of a home when you use a dual agency.”  Even though buyers are losing money, RedFin’s survey, which was conducted last year, found that one in 10 homes in the U.S. are sold by a dual real estate agency.

Although real estate agents are required by law to disclose if they represent both the buyer and the seller, but often that disclosure isn’t so black and white. Every state has its own laws regarding dual agencies according to John Murphy, a realtor in Plymouth, Minn., and that buyers and sellers will often run into dual agencies when dealing with big brokerage firms.

“Real estate is a very entrepreneurial environment and is perfect for small brokers. There are many that are out there, but there also continues to be consolidation like we see in many other industries where the big brokers continue to get bigger and bigger,” says Murphy.  “It's in the big broker environment where you run in to dual agency situations.”

Even in situations where the dual agent is disclosed, home buyers aren’t necessarily informed on what this means. Murphy says he sees a lot of dual listings with new construction sales since most buyers are so focused on purchasing a home and will make sacrifices.

In Minnesota, Murphy says dual agents would go from fully representing one party to having limits placed on the representation of both. For example, agents aren’t allowed to argue to benefit one party over the other. “It is like a boxing match where we would move from being the coach in the corner giving explicit guidance, direction and coaching to our boxing client to becoming the referee where we have to remain impartial, says Murphy. “ I don't think real estate consumers fully understand this aspect of real estate.”

Going with a dual agent arrangement makes  a lot of  sense for buyers looking for an edge, but in a normal real estate market, critics advise homebuyers to avoid that situation if at all possible.

“In today’s market, where the dual agency method can get the property it’s tough to avoid the dual agency but it really does harm the system,” says Tan.  “You jeopardize the rights of the buyer and the seller. You’ll never know if you really got a good deal.”

http://www.foxbusiness.com/personal-finance/2013/06/12/working-with-dual-agency-what-need-to-know/

How to Identify a High Energy Performance Home

Capital Home Builders is the only and first custom and energy smart home builder in South Georgia. Our homes come with more features then any other home built in Georgia and South Georgia. We are also the only builder offering Home Energy Rating System (HERS) Rated homes. We are the only builder with Residential Energy Guarantee. We will guarantee your electrical bill for Two Years and if you go over we will pay you back the difference. NO other builder in South Georgia will stand behind their homes like we do. We do not believe in building to minimum code and our homes are proof of that. You may pay 5% to 10% more for a High-Performance home, but with all of the energy savings you will make it back the first 2 years. 

So you’re looking to buy a new home…but not just any home. You want one that’s easy on the environment and uses less energy. A comfortable home that saves you money while reducing your carbon footprint.

In other words, what you want is a high energy performance home.

But how do you know when you’ve found one? I mean, how can you tell if the house you’re viewing is actually a high energy performance home? Is there a way to differentiate between a home that’s energy efficient from one that’s not?

Luckily there is and increasing numbers of builders are using it to market energy efficient homes. It’s called a HERS Index score and hopefully one day soon every house will have one.

Energy Performance and the HERS Index Score

So what is a HERS Index score anyway? The home energy rating system (HERS) was developed by RESNET to help homebuyers compare homes based on their energy performance. For example, when a certified RESNET Home Energy Rater does a home energy rating, they’ll give the home a HERS Index score based on its energy performance.

A standard new American construction home that adheres to current energy guidelines is awarded a default HERS Index score of 100, which serves as a benchmark against which all other homes are measured. A higher HERS Index score translates into a less energy efficient home, and vice-versa. A typical American resale home scores 130 on the HERS Index, making it 30% less energy efficient than a new construction home. On the other hand, if a house gets a HERS Index score of 50, it means that it’s 50% more energy efficient than a standard new construction home. And in Thomasville, GA. a typical new home has a score of 130.

Why the HERS Index Score is Important to Builders

Thanks to the HERS Index and HERS Index scores, for the first time homebuyers can actually get an true understanding about how energy efficient a home really is. This naturally changes the way people are viewing homes they’re interested in and builders have been quick to understand that. Consequently, many are now actively marketing their homes using HERS Index scores to advertise potential savings that homebuyers could enjoy when purchasing a high energy performance home.

In addition to this, utility companies too are jumping on the bandwagon by offering builders rebates on energy costs based on their homes’ HERS Index scores. In fact, LG&E and KU Energy, a utility company based in Louisville, Kentucky, recently had their Energy-Saving New Homes Program recognized as a RESNET Energy Smart Program. The program rewards enrolled builders with rebates based on the HERS Index scores of their houses. For example, single family dwellings with HERS Index scores of 85 are eligible for a rebate of $440, and it increases up to $1,200 for homes that score 50 or lower. LG&E and KU Energy are the first utility in the U.S. to earn this designation from RESNET.

What Does All This Mean to Homebuyers?

Thanks to increased efforts and awareness, it’s now getting easier for homebuyers to identify and buy high energy performance homes. As the popularity of HERS Index scores continues to grow, and with builders actively promoting energy efficient homes via their scores, the future is starting to look a little…well…greener than it once did!

http://www.trulia.com/property/3136244802-202-Stallion-Cir-At-Summer-Gln-Thomasville-GA-31792

Home Builders Building Homes that Young Buyers Want, Says NAHB!

Capital Home Builders has been advocating green smart healthier low energy bill homes since 2005. We have known for years that green building was better and healthier way of building a home that would outlast typical old building practices.

June 3, 2013 - During National Homeownership Month in June, the National Association of Home Builders (NAHB) is telling young people that the time is right to buy a home, and the nation’s builders are building the homes they want.

“As the economy recovers and young people who had to live at home with their parents move forward with their lives and achieve their dreams of homeownership, home builders are delivering homes that cater to the floor plans, features and affordability that this generation desires,” said NAHB Chairman Rick Judson, a home builder and developer from Charlotte, N.C.

More than 80 percent of Generation Y home buyers—people born in 1977 or later—said inNAHB’s 2012 consumer preference survey they prefer a highly energy efficient home that results in lower utility bills during the home’s lifetime over a lower-priced home without energy efficient features. Today’s new homes feature ENERGY STAR-rated appliances; windows, doors and insulation that better control the home’s interior climate; and other modern components such as tankless water heaters and HVAC systems that save costs on utility bills.

And cost-conscious young buyers will be happy to hear that a new home actually costs less to maintain than an older home. An NAHB study found that homes built before 1960 have average maintenance costs of $564 a year, while a home built after 2008 averages $241. Plus, mortgage rates are still very low, bolstering affordability for home buyers.

Generation Y buyers favor media and game rooms more than any other specialty rooms for their next home. New homes today not only contain these spaces, they are outfitted with the state-of-the-art electronic and wiring components that can accommodate high-definition televisions, full-house sound systems, hard-wired fire and security alarms and more.  

Young buyers can check out many of the outstanding designs and features being included in homes built by NAHB members at our social media communities facebook.com/homebuildrs, pinterest.com/nahbhome and google.com/+nahb. They can also access home buying and home building information and resources on NAHB’s website at nahb.org/forconsumers.

“The time has never been better for young people to become home owners, whether it be a new home or existing,” said Judson. “There are outstanding opportunities in the current market, with near record low interest rates, competitive prices and new homes being built that include open layouts, energy efficient components and other features that cater to young buyers.”

http://www.nahb.org/news_details.aspx?newsID=16329

Are green building attributes properly valued?

We've been building green custom smart homes since 2005,  Before buying a home in Thomasville, GA. educate yourself on the home you are looking to purchase and the quality construction of that home. The words “minimum code” is dedicate to homes that are not built to green or high performance. A “minimum code” will not have a HERS index of 50 or lower. A “minimum code” will have a HERS Index of 100 to 130 which means it is 80% more costly to operate then a High-performance home. Again, a true energy efficient home is tested by a third-party,

Now Realtors can blow smoke up your keister and tell you that the electrical bill of a minimum code home is $100.00/month when we know that a minimum code home is, again 80% more costly to operate than a true green high performance home.

Now we are sure there are many other creative ways an agent can show a low monthly bill by deciding to show the buyer an off month electrical bill, like from spring where the A/C unit is not used or a vacation month. But the only true way is by having it tested by a third-party Rater.

Do you have a “green” home? Or want to buy or build a green home? You’re not alone. According to the 2012 Yahoo Real Estate Home Horizons Study, Americans say a green or energy-efficient home would be a hallmark of their dream home, taking precedence — for the first time ever — over common favorites like water views or living in a gated community.

If you are looking to refinance, buy or build a home which outperforms typical code-built homes in energy efficiency, you probably have contemplated the question, what is the value of green?

A common belief is that lenders and appraisers cannot put a monetary value on green building features in the loan approval process. Not true. There is growing willingness, on the part of lenders, appraisers and Realtors to reflect the advantage of green in your home value, due in part to increased support from the federal government and the Appraisal Institute, and a willingness amongst homebuyers to pay more for high-performing third-party- certified green homes.

An extensive study conducted by the University of California analyzed 1.6 million single-family home sales from 2007 to 2012, and found that third-party green-certified homes sold for 9 percent more on average than comparable non-green-certified homes.

Residential appraisers often turn to the multiple-listing service (MLS ) for comparable sales data to assist in valuing properties. Santa Fe’s MLS is one of 185 MLS databases nationwide that have green data fields; there are approximately 665 others that do not. Increasing use of these fields by Realtors will assist appraisal values for green homes.

Appraisers can also use the Appraisal Institute’s Residential Green and Energy Efficient Addendum, a nationally recognized document that categorically highlights the energy, water, solar and other green features of a home so as to be monetized in the valuation of the appraisal. There are other valuation techniques available to appraisers; however, a green appraisal requires more training, skill and time than a standard appraisal.

Any owner requesting a green appraisal has the right to require that your lender use an appraiser experienced in green property valuation. Santa Fe has several appraisers with green valuation experience. If you hope to maximize the value of the green features in your appraisal, you should also present your qualified appraiser with easy-to-understand, itemized cost data for the energy, water, solar and other green improvements you made versus a code minimum home.

With the help of a HERS rater, you can also itemize the cost savings of your energy upgrades versus code-minimum construction. It is the responsibility of the builder or homeowner to inform the appraiser of these added value features.

As we emerge from the housing lull and move into a new era of slow but steady growth, we have a golden (and green) opportunity to increase the value of the green home projects we are conducting in the City Different.


http://www.santafenewmexican.com/life/home/article_b3e7dc17-a4c8-57bb-88df-a6625ab3d849.html