Recently because of the economy there has been a decline in the price of real estate. There has also been an increase in energy costs brought about by many factors including the situations in the oil producing countries of the Middle East. Because of these factors more and more people are looking into buying eco friendly or green real estate.
In the past if you wanted a green home you were probably looking at paying an additional 10 to 25 % on the purchase price. Presently you may only pay an additional 3 to 5%. The good news is that these additional costs can be covered in the long term by savings on electricity and other utilities. For example an eco friendly boiler can save you in the region of $500-600 annually.
Many traditional homes have lost value with the current economic situation. However green homes have held their prices and in fact many have increased in value. An eco friendly home will on average appraise for 10 to 15 % more.
This makes the purchase of a green home attractive to home buyers around the country and the demand for them is increasing. Currently around 10% of new homes constructed are now eco friendly.
So what makes a home green or eco friendly? Well there are many things that fall under this category. The impact on the environment, the use of materials that have been recycled are non polluting, energy efficient design, insulation, fluorescent lights, Energy Star appliances, lo flo water reducing toilets, etc. Whit that being stated there are no set requirements for a green home therefore buyers should be aware that some homes may be stated as being eco friendly just to increase the price.
If you are looking to buy a green home check out the local codes to see if they include eco related features. If you know what is required then you will be able to understand what you are paying for in green upgrades. Also talk with local experts on the subject. Certain real estate companies and mortgage brokers specialize in these types of properties and can be a wealth of knowledge.
Energy efficient mortgages are available for those looking to finance a green property. These federally recognized loans are in place to help finance the increased cost of going green. The savings in utilities can help when faced with an increase in monthly payment – you pay when you save. Your debt to borrowing ratio can be increased and so you can get a larger loan amount. These types of mortgages are available through certain lenders such as Freddie Mac, and the Veterans Administration. An energy audit specialist is necessary to document the energy saving potential of the home.
For help with figuring out the financial aspects of buying your new home visit Mortgage Calculator a tool which will help you determine the mortgage that meets your needs.