The concept of green, particularly when it comes to housing, has many definitions. A more descriptive term and one that’s used by the U.S. Environmental Protection Agency is “high-performance.”
Calling a house high-performance sets it apart from conventionally built homes. You might say you want a green home, but you really want one that’s high-performance.
Energy-efficient doesn’t mean green
A homeowner wanting to list a property as green might not understand why it doesn’t meet the definition even though it has energy-saving appliances, for example.
Real estate agents can explain to clients that green features, such as LED lighting and solar panels, don’t necessarily make a house green or high-performance. To be a high-performance building, it needs to meet minimum requirements in these six categories: 1 Site 2 Water Efficiency 3 Energy Efficiency 4 Indoor Air Quality 5 Material 6 Operations & Maintenance
You can ask for an appraiser with green expertise
Real estate agents can recommend that clients request that their lenders use an appraiser who has a green valuation education.
Agents or borrowers can’t ask for an appraiser by name, but the Appraisal Institute, for example, has the registry Valuation of Sustainable Buildings: Residential with names of designated members who have green expertise.
You can request use of the Residential Green and Energy-Efficient Addendum Clients also can ask lenders to provide appraisers with the Residential Green and Energy-Efficient Addendum. This addendum, created by the Appraisal Institute and available on its website, was the first form of its kind intended for appraisers’ use.
It’s an optional addendum to Fannie Mae Form 1004, the appraisal profession’s most widely used form for mortgage lending purposes, that allows appraisers to identify and describe a home’s green features, including solar panels and energy-saving appliances.
Green is the new black.....but make sure that is truly falls into the category you want in your new home.
According to a NAR 2016 trend survey, they want to live in the suburbs.
WHO ARE MILLENNIALS?
More millennials (defined as buyers and sellers age 35 and younger) are purchasing homes outside of urban areas.
Despite the common refrain of millennial debt, these buyers don't have the biggest student debt balances.
Once again — for the third year in a row — millennials comprised the largest number of recent homebuyers.
Here’s the approximate breakdown of respondents
(due to rounding, numbers add up to more than 100 percent):
“Overall, the majority of buyers in all generations continue to purchase a single-family home in a suburban area, and the younger the buyer, the older the home they purchased,” reported NAR in a press release.
“The median age of a millennial homebuyer is 30 years old, which typically is the time in life where one settles down to marry and raise a family,” said Lawrence Yun, NAR’s chief economist, in a statement. “Even if an urban setting is where they’d like to buy their first home, the need for more space at an affordable price is for the most part pushing their search further out.
“Furthermore, limited inventory in millennials’ price range, minimal entry-level condo construction and affordability pressures make buying in the city extremely difficult for most young households,” he said.
Millennials were certainly making compromises in the homebuying process, according to Jessica Lautz, NAR’s managing director of surveys. These compromises tended to be on the size of house, or the house itself not being perfect. Millennials were also more likely to buy foreclosures than other buyers, she said.
Millennials were willing to see a “diamond in the rough,” fix it up themselves and customize it for their own needs, said Lautz.
“Other notables are that millennials, more than any others, think that buying a home is a good financial investment,” she added.
Rising rents were a major contributing factor for millennials who made the step to buy. While they still had student debt — 44 percent of millennials have student debt of a median size of $25,000 — 23 percent were using a financial gift from a friend or relative to help with a down payment, as well as using their own savings.
This generation was also not thinking of their home purchase as a temporary step.
“Millennials are expecting to live in their homes for 10 years; they are not thinking of it as a starter home. They are thinking of staying settled for a long time,” said Lautz.
One reason for this could be a residual psychological factor left from watching parents go through housing woes in the recession.
Finding a home and using an agentConsumers are still starting their home searches online, according to NAR — that’s the most common first step for almost every generation, except for buyers between 70 and 90 years old, who contacted a real estate agent as their first step.
Buyers typically looked at 10 homes before finding the one they ended up buying, and most of them were “very satisfied” with their experience — 59 percent, up from 56 percent one year ago.
Most respondents surveyed used a real estate agent to purchase their homes — including 89 percent of millennial buyers and 87 percent of Gen X buyers.
Buyers from all generations said they wanted an agent’s help to find the right home to purchase first and foremost — secondary considerations included terms of sale and help with negotiating price. Millennial buyers most prized help understanding the purchase process (71 percent of them said this was a reason they wanted to hire an agent).
And millennials wanted slightly different qualities in their agents. Boomers and the silent generation said that the agent’s reputation was paramount when choosing an agent; millennial buyers prioritized an agent’s trustworthiness and honesty.
“Among the biggest factors influencing neighborhood choice, millennials were most influenced by the quality of the neighborhood (63 percent) and convenience to jobs (60 percent); convenience to schools was most desired by Gen X buyers, and proximity to friends and family by the Silent Generation,” reported NAR in its release.
In NAR’s statement, Yun also added that the burden of student debt isn’t exclusively limiting millennial purchasers. “Whether it’s from financing their own education or borrowed for their children, it’s somewhat surprising to see a higher median amount of student debt among Gen X ($28,000) and younger boomer buyers ($29,100) compared to millennials ($25,000),” he said.
“One of the many reasons housing supply has been subdued in recent years may be because a segment of homeowners have decided to delay trading up or moving down in order to pay down their debt, including from student loans.”
**Article Source: INMAN NEWS Inman.com
In today's housing market there are a lot of choices out there for your purchase. One thing to consider is whether you want to buy an older home and make renovations (sometimes just a few & sometimes an overhaul) or whether you prefer a newer home or even a freshly built house. Here are just a few of the pros and cons for each. Still can't decide? Get in touch with me and I will assist in any way I can!
For only the third month in 2015, November home sales were lower than sales one year ago, although the drop was just 1.4%. Over the last eight years, November sales have fallen an average of 12% from the previous month, but this year the drop was nearly double that amount at 22.6%.