For today’s home sellers, the real estate market has become surprisingly competitive. With homebuyers cancelling deals at record rates and sellers vastly outnumbering buyers, finding ways to stand out are crucial for actually selling a property.
While there are many tactics sellers may use to try to make their home more appealing to prospective buyers, one area that shouldn’t be overlooked is the power of smart energy solutions.
As Jeff Rodgers, Chief Marketing Officer of Indra Energy, a company that facilitates access to renewable electricity and gas, explains, a smarter approach to sustainability can make a difference in attracting potential homebuyers.
The Appeal of Energy Efficiency
As Rodgers notes, energy efficient features have long been attractive to prospective homebuyers because of the long-term cost savings they can provide — and in today’s competitive real estate market, these solutions can be a deciding factor in a buyer’s decision. “A wide variety of energy efficiency upgrades have been found to help homes sell faster, and sometimes, at a higher price than other comparable homes,” he explains.
“Upgrades like double-pane windows, which make it easier for a home to stay at a consistent indoor temperature, represent immediate monthly energy savings for new homeowners. When people can see that they are going to save money thanks to the energy-efficiency your home already offers, they’re naturally going to be more interested. They may view a higher initial price as a worthwhile trade-off for the long-term energy savings they’ll be able to enjoy.”
In fact, an analysis by Zillow found that homes with double-pane windows often sold at a 1% higher price than comparable homes, and 6.9 days faster. Even energy efficiency features that didn’t have a big impact on home price, such as a programmable thermostat or a smart sprinkler system, still helped homes sell several days faster.
The Value of Going Green
While there are undeniable financial advantages for homebuyers who purchase a home with smart energy solutions, there are also many buyers who are inherently drawn to a home purchase that promises to reduce their impact on the environment. “For many people, going green is a value — something that they prioritize on a moral level, even when they don’t see a direct financial benefit,” Rodgers says.
“Of course, an energy-efficient home can offer many advantages beyond lower utility bills and a smaller environmental footprint. For example, a more energy-efficient ventilation system can also improve indoor air quality and comfort. The high-quality materials and workmanship that often go into these upgrades also mean fewer repair or maintenance worries in the future. But for an increasing number of buyers, simply being more eco-friendly in how they live is the biggest draw.”
The desire for a green, eco-friendly property falls in line with younger generations’ desires to prioritize sustainability in their lifestyle in general. Reports indicate that 72% of Gen Z have changed behaviors to reduce their impact on the environment, even when it means paying a higher price for sustainable products. This has begun to influence brand messaging and priorities, and is also making eco-friendliness more of a factor in home purchases, as well.
Implementing Energy Solutions
Whether from a desire to lower ongoing expenses or the goal of helping the planet, the fact remains that targeted energy solutions can have a big impact in today’s real estate market. But where should sellers begin?
With 72% of real estate professionals in a REALTOR survey reporting that their buyers list a home’s ongoing utility bills and operating costs as a top priority, it’s no surprise that money-saving energy efficiency upgrades have become an area of emphasis.
The survey found that the age and quality of windows, doors and siding, as well as utility bills, tend to be the biggest concern for homebuyers. Targeted improvements in these areas can help alleviate buyer worries and make a property more attractive.
As Rodgers notes, there’s not necessarily a one-size-fits-all approach to implementing energy-efficient solutions. “Each homebuyer is unique, so they’ll naturally end up prioritizing different conservation and energy-efficiency measures,” he says.
“Ultimately, you should do as much as you can and what your budget allows so you can appeal to the widest range of buyers. For example, installing solar panels right before you sell your house probably isn’t a financially wise option, but you can switch to a utility provider like us that purchases energy from Renewable Energy Credits.”
Unsurprisingly, marketing any and all energy efficiency upgrades as part of a listing should be a key part of the listing strategy. As with making the upgrades in the first place, sellers should first highlight the features that hold the most appeal for buyers overall, but in today’s market, it is likely worth noting all eco-friendly features within the listing.
Making the Sale
Many of the initiatives homeowners take to improve their home’s energy efficiency and overall sustainability profile may seem small, but as Rodgers illustrates, these changes can have a big impact on potential buyers.
Each step to help differentiate a property, especially with environmentally-conscious buyers, as well as those looking for long-term savings, can make a meaningful difference in its time on the market and sales experience in general.
