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One Broker’s Take on the Selling Power of Green

Posted on Apr 20 2009 by Richard Defendorf

A real estate broker crunches Atlanta-area sales statistics to highlight their appeal for homebuyers

One way to measure the appeal of a home’s certified green construction is to put it on the market and see if, for all its proven green qualities, it sells at or near the asking price in timely fashion.

According to a report prepared by Carson Matthews, a certified EcoBroker who works in the Atlanta area, statistics provided by the First Multiple Listing Service (which focuses on listings inside Atlanta’s Interstate 285 “loop”) show green homes have been selling more quickly and closer to their listing price than homes that have no green certification.

Matthews’ points out that FMLS established a listing category for homes with green certification – including Energy Star-rated properties, those built through the EarthCraft House partnership, and those with a LEED for Homes rating – back in August 2008. His analysis focuses sales of properties priced above $300,000.

The gist of the analysis is that, from September through February 10, the average sales price of certified green homes was 95.4% of their asking price, while sales of non-certified homes averaged 90% of asking. From January through April 16, certified properties sold for 93% of asking, on average, while non-certified homes sold for 88.6% of asking.

It’s important to note that the average sales price of non-certified homes was relatively high. During the September-February period, for example, the average sales price of these properties was $640,145, 34% higher than the average for certified homes, which was $477,626. So, excluding the major factor of location, the green-certified homes had a pricing advantage. Also, there were fewer of them: They accounted for about 5% (22 out of 436) of sales during the September-February period, and about 8% (21 out of 240) from January through April 16.

Still, it's an interesting peek at the potential selling power of green. As multiple listing services in Atlanta and other markets continue to track sales of certified green properties, it’ll be worth watching how the market evolves.


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1.
Apr 20, 2009 10:08 PM ET

Carl, thanks for posting
by Carson Matthews

Carl, thanks for posting this. One of my favorite findings in that report is that the Green Certifiied Homes sell in 106 days on market compared to 186 days for non-certified homes. Between Sept and Feb, those numbers were 80 compared to 152. Those savings because of days on market can have a major impact on the builder's profit.

Carson Matthews
www.GreentotheScene.com


2.
Jun 9, 2010 8:42 PM ET

Atlanta Green Home Sales Reports
by Carson Matthews

The Atlanta Green Home Sales Reports can be seen at http://greentothescene.wordpress.com/atl-green-homes-sales/ . This page has links to the 2009 quarterly reports as well as 2010 reports as they are completed each quarter. Statistics continue to show solid advantages to building homes that are 3rd party certified. Thanks again for the post.

Carson Matthews
www.GreentotheScene.com


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