Solar Installation Los Angeles- Energy Efficient Homes are Selling Faster and at Higher Prices in Los Angeles

Research projects in California show that energy efficiency and sustainability certifications for homes may result in faster sales at higher prices. Home energy efficiency and sustainability have become major policy priorities for the Obama administration. Although some of the benefits of solar panel installation are clear, there are still several questions that homeowners ask: do Residential solar panels Los Angeles add to the resale value of the home? Does it make it easier and faster to sell your home?

In a study performed on new and existing homes sold from May 2010 through April 2011, the Earth Advantage Institute found that the newly constructed homes with certifications for sustainability and energy efficiency sold for 8% more than the average noncertified homes while existing homes with certifications sold for 30% more. This data was provided by the Portland regional Multiple Listing Service. Certified homes were defined as those carrying Energy Star. LEED (Leadership in Energy and Environmental Design) for Homes, or Earth Advantage home certifications.

Officials note that using average sale prices for homes without comparing the homes directly with one another may not be conclusive. For example, some of the newly constructed certified homes may be more expensive to begin, and existing certified homes may be larger and more likely to be in higher-cost neighborhoods where energy-efficiency adoption rates are also higher. A study conducted by the institute of Seattle and Portland shows that the Homes marketed with energy-efficiency certifications sell faster than those without. The study found that in Portland, certified homes spent 18 less days on the market than noncertified homes.

The National Bureau of Economic Research took a different approach in a recent study on homes in San Diego and Sacramento: After solar panel installation Los Angeles, how much do you get back in market resale terms, in addition to the monthly savings? Researchers examined home sales in both metropolitan areas between 2003 and 2010 and found that solar panel installations for homes in the $500,000 range cost homeowners about $35,967. With federal and state credits this net average cost lowered to about $20,892. This investment yielded an increase in the appraised value by $20,194-a 97% recovery. Although the rate is under 100%, it is still higher than most home improvements such as kitchen and bathroom remodeling.

Although newly constructed homes come with energy and sustainability certifications, banks don't always recognize their value when providing mortgage money. Bank underwrites don't always include the reduced monthly utility costs in the household income/ household expense ratios that affect the maximum mortgage amounts available to potential home buyers. Appraisers often don't have the training to recognize and give credit to houses that have money-saving solar installations, geothermal heating and cooling, water conservation features and other green improvements. The appraisal institute says that it was done its part to sponsor "green" appraisal courses for 2,300 appraisers during the last two years. It says it strongly supports efforts to better incorporate energy efficiency and environmental factors into home evaluations and mortgage underwriting.

For references please visit: http://articles.latimes.com/2011/aug/28/business/la-fi-harney-20110828