Are ‘Green’ homes a better investment??

In a previous post I talked about how a Meritage ‘Green’ home could save homeowners as much as $100,000 over a 30 year period.  I also talked about how the homebuilding industry is changing the way they build in order to satisfy growing consumer demand for higher performance. 

So for this week’s update I decided I would share a brief competitive analysis that I put together that compares the Days-On-Market & Price/Sq.Ft. of homes that were SOLD in the Phoenix-Metropolitan area in 2010. 

To be perfectly honest, the original idea behind putting together this analysis was really only to prove to myself (“the sales guinea pig” for our company’s Green Initiative) whether or not this ..High Performance Homebuilding.. stuff was going to stick.  I wanted to make sure Meritage Home’s industry-leading ambition was in alignment with how consumers define the word “value” in terms of residential real estate.  In short . . . I didn’t want to jump on the bandwagon unless I was convinced homebuyers would do the same.

This competitive analysis most certainly answered that question for me.  When comparing homes that were sold WITH an efficiency feature versus homes sold WITHOUT the same efficiency feature . . . in every instance; the home with the efficiency feature sold faster & for more money per square foot!  So, is a ‘Green’ home a better investment??  Absolutely.  …evidenced by the fact that we are in a housing market where buyers have more choices than ever YET they are willing to pay a premium for a home that offers a higher level of performance.

With all of that being said, below is the abbreviated version of what I came up with.  I encourage skepticism from readers who may work in the industry & have access to the ARMLS flexmls database here in Arizona . . . if you have some time, pull a few statistical reports from the MLS for yourself to see the gap in resale performance between the homes-with and the home-without!

What is REALLY interesting about all of this information is that when I tried to find comparable sales that included ALL of the coded efficiency features below, not one comparable sale came up.  …well, scratch that . . . what I meant to say was not one comparable sale came up other than the homes we sold here at Lyon’s Gate by Meritage Homes.

Enjoy and please share this with others!!

Brandon Cleveland
Meritage Homes at Lyon’s Gate
(Gilbert, Arizona 85295)

Click for current pricing & floorplans
Click for pictures of the onsite education center
Click for Going ‘Green’ in Gilbert (blog)

RE: Green Homes, What’s a ‘Solar/Thermal’ system?

Without a doubt, of ALL the energy saving features we include in our homes, the ‘solar/thermal’ system attracts the MOST attention from homebuyers walking through our onsite education center.

Of course the second-most talked about feature would be the included dual-flush toilets . . . although that is probably my fault as I’ll often mention them to help break the ice with new visitors.  After all, nothing says “come in and make yourself at home” like talking toilets with a complete stranger.  But I digress…

As I was saying, the solar/thermal system is getting a lot of attention here . . . but what is it exactly??  In the case of our ‘Green’ homes here in Gilbert Arizona, the solar/thermal system refers to a product called “ECHO” by PVT Solar.  “…the most complete solar energy solution” on the market today.

Why is the ECHO system so special?  Because it utilizes more of the sun’s energy than a stand-alone PV (photovoltaic) system.  The ECHO system produces Solar Electricity, Solar Thermal Water Heating and even Solar Thermal Air Conditioning!

An interesting fact about PV solar panels is that when the panels get especially hot (like during an Arizona summer for example) their ability to generate electricity begins to diminish.  …this can be very discouraging because, as consumers, we assume the more the sun shines; the more energy we can produce with solar-electricity. 

So how does ECHO address this important issue?  With the ECHO system, heat is actually drawn from the panels to not only help them operate more efficiently, but it will actually capture & use that heat to help warm the home’s hot water supply . . . year around!

The best part about the ECHO solar/thermal system is that it is actually included in every home we build here at Lyon’s Gate.  …which means anyone who purchases a Meritage Home at Lyon’s Gate may be eligible for the (cash back) solar tax credits of up to $6,700!

Brandon Cleveland
Meritage Homes at Lyon’s Gate
(Gilbert, Arizona 85295)

Click for current pricing & floorplans
Click for pictures of the onsite education center
Click for Going ‘Green’ in Gilbert (blog)

‘Green’ New Home For Sale …80% more efficient than code-built home!

Click for full listing detail

This home . . . priced under $200,000 . . . in beautiful Gilbert Arizona is equipped with over $50,000 of advanced building technologies that are designed to save BIG money on energy costs!

Salt River Project (the electric utility) estimates the averaged
energy cost* for this home to be:

$39 in the winter months!
$82 in the summer months!!

 

 

 

 

 About Lyon’s Gate by Meritage Homes

Lyon’s Gate; located in the southeast Phoenix suburb of Gilbert, Arizona is a true testament to Meritage Homes’ commitment to the future of homebuilding with respect to Energy Efficiency, Water Conservation, Sustainability and Green Building Practices. The homes in this community will incorporate advanced building science practices like:

• Included ECHO Solar Electric/Thermal System
• Included Meritage Home Performance Wall System
• Included Spray Foam Insulation
• Included Super-high Performance Windows
• Included Energy Efficiency Lighting
• Included Weather Sensing Irrigation
• Included High Performance Plumbing Fixtures
• Included 14 Seer Air Conditioning Unit

All of these features included in homes from approximately 1640 sq. ft. to 3062 sq. ft. and starting in the 170’s! This community is one of a kind and can save homeowners up to 80% on their home’s energy use.

Lyon’s Gate is situated just off the 202, getting around Phoenix, Tempe, and Mesa is quick and easy. Conveniently nearby are a variety of mountain parks, Arizona State University’s Polytechnic Campus, and the Phoenix-Mesa Williams Gateway Airport. Plus, you’ll find a wide variety of local shops and eateries at the San Tan Village shopping corridor just around the corner.

Brandon Cleveland
Meritage Homes at Lyon’s Gate
(Gilbert, Arizona 85295)

Click for current pricing & floorplans
Click for pictures of the onsite education center
Click for Going ‘Green’ in Gilbert (blog)

*Refers to SRP’s “Powerwise Homes” estimate for basic energy costs:  Lighting, Heating, Cooling & Water Heating.  Actual energy costs may be higher or lower than those illustrated.  Estimates assume temperature settings of 78 degrees (Summer) & 80 degrees (Winter).  Ask the sales associate for a SRP Powerwise brochure for full detail and disclaimers.

Could a ‘green’ home really cost LESS than a ‘used’ home??

Sitting here in my new home sales office day in and day out, I meet a lot of folks who are comparing new AND used homes for purchase.  …and while I understand the birds-eye appeal of all the ‘bargain’ used homes in this current market; I often wonder how much consideration is being given to life in a used home beyond the attractive price tag. 

I know many homebuyers and industry professionals are already aware of the potential pitfalls associated with a ‘bargain’ used home purchase so I’m not going to talk about that in this post.  Likewise I figure most folks, at some point, have heard of all the benefits of buying ‘new’ vs ‘used’ . . . warranties, more choices etc, so I don’t want to talk about that either. 

But what about life after the home purchase?  How many homebuyers really understand the substantial cost-of-ownership savings a Meritage ‘Green’ Home is capable of providing over the average used home on the market today??  Let’s consider the following side-by-side comparison:

THIS is the sort of comparison a typical homebuyer is making when they come through my doors.  They want the NEW home of course . . . whoever wants something that is ‘used’ when they could have something that is ‘new’?   They are just trying to wrap their head around the idea of spending an extra $170 per month when there is a less expensive option on the table. 

But what about life after the home purchase?  The fruit of a Meritage ‘Green’ Home at Lyon’s Gate is in the ongoing cost of ownership . . . things like maintenance & repair costs as well as monthly utility expenses.  Most ‘experts’ say that typical maintenance/repair costs average out to anywhere from 2% – 4% of the purchase price annually.  …whether or not a homeowner budgets & saves for those ongoing expenses, the cost is real and should be accounted for one way or another.   The basic energy costs (lighting, heating, electrical, cooling) is another ongoing expense that isn’t going anywhere and absolutely needs to be taken into consideration.  As mentioned in a previous blog post the local electric utility in this area, Salt River Project, has experienced a 5% average rate increase over the past 20 years . . . which means the longer a homeowner lives in a Meritage ‘Green’ home, the more they’ll save.

A bargain-priced ‘used’ home may look like a good deal, but looks can be deceiving.  Think about life after the home purchase…  As illustrated above, a Meritage ‘Green’ home can be less expensive to own thanks to the advanced energy-efficient features included in every home we build!

…could a ‘green’ home really cost LESS than a ‘used’ home?  Absolutely.

Brandon Cleveland
Meritage Homes at Lyon’s Gate
(Gilbert, Arizona 85295)

Click for current pricing & floorplans
Click for pictures of the onsite education center
Click for Going ‘Green’ in Gilbert (blog)

 

What are the BENEFITS of a ‘High Performance’ home??

I recently attended a sales workshop on the subject of selling “high performance” homes; presented by the EEBA (Energy & Environmental Building Association).  The workshop was very enlightening, in that the presenter was able to help me understand the meaning of the term “high performance home” from a consumer’s vantage point! 

The fact is the ways in which we utilize our homes has changed dramatically over the years; so it stands to reason that the design and construction of our homes should follow suit and adjust to meet the changing needs of today’s homebuyer.  The instructor provided ‘air conditioning’ as an example of changing demand in housing performance.

He said that back in 1960 less than 12% of all homes in America had air conditioning units (which could also explain why population growth here in the desert didn’t begin to boom until after . . . the 1960’s!).  While there are many factors that contribute to this statistic (higher costs, smaller percentage of the population lived in warm climates etc) it is still an excellent example of how the housing industry has adapted to changing consumer demand.

So what is a ‘high performance’ home & what benefits will it provide the homeowner??  In the 1960’s, a high performance home meant having an air conditioner.  The air conditioner provided the homeowner with more control of their climate and, ultimately, more comfort while enjoying their home (the benefit).  Now-a-days we spend an average of 90% of our time indoors so a high performance home many times just means MORE of the same stuff . . . more control, more comfort etc.  According to the EEBA, a high performance home in today’s market will provide five primary benefits:

 

1.       Healthier

2.       More Efficient

3.       More Comfortable

4.       Safer

5.       More Durable

 

So HOW does all of this tie together with the solar-powered “green” homes I’m selling here in Gilbert, Arizona? The EEBA instructor talked at length about the harmonious relationship between “high performance” housing and “green” housing in that the features of either one will undoubtedly provide benefits to the other.  Here is an example of what I’m talking about: 

At Lyon’s Gate by Meritage Homes, we are including open cell spray foam insulation in every home we build . . . and while ‘spray foam’ is an integral part of Meritage Homes “Extreme Energy Efficiency” program;  it provides many “high performance” benefits to a homeowner as well.   

Healthier & More Efficient -  A typical home loses 20%-50% of its air conditioning through air leaks in the home; Spray Foam Insulation seals the home to keep the air conditioning in, dirt and pollution out . . . which provides the benefit of a healthier living environment and it reduces waste; making the home more efficient to operate. 

More comfortable - Another performance benefit of Spray Foam is its sound-insulative qualities that will provide a potentially quieter living environment over traditional insulation materials, which results in a more comfortable home.

Safer - One of the leading sources of fire propagation is fire embers from external fires entering the home through the attic vents.  The spray foam insulation provides a sealed attic, which prevent access to dust, pollution, bugs, and potential fire sources, making a spray foam insulated home safer.

More durable - In traditional vented attics, all HVAC equipment like air handlers, furnaces, ducts, & dampers are stored in areas where they are exposed to extreme temperatures which can stress and prematurely wear down HVAC systems.  On the flip side, a spray foam sealed attic keeps attic temperatures within 5-10 degrees of the home’s temperature, helping to reduce mechanical wear in the home which makes the home . . . more durable!

Brandon Cleveland
Meritage Homes at Lyon’s Gate
(Gilbert, Arizona 85295)

Click for current pricing & floorplans
Click for pictures of the onsite education center
Click for Going ‘Green’ in Gilbert (blog)

‘green’ homes capable of saving $100,000 over the life of the home??

Before I grand opened Lyon’s Gate, a solar powered new home project by Meritage Homes, I did a lot of research into consumer demand for ‘green’ homes.  …what does a “green homebuyer” look like?  My initial assumption was that ‘green’ homes were a niche product that would only appeal to a small percentage of all prospective homebuyers. 

Six months into this unique housing project, the reality has been that my average homebuyer looks just like every other homebuyer that I’ve sold new homes to over the past 10 years.  Why? …because saving money knows no stereotype!  Sure a ‘green’ home provides many health and environmental benefits to its owner, but the only ‘green’ benefit that is powerful enough to get a prospective homebuyer to take action in this market, is the $AVINGS!

For example: 
According to Salt River Project (SRP), the local electric utility here in Gilbert, the estimated energy cost of our 1640 sf ‘green’ home is $720 per year. 

By comparison, a typical 1640 sf ‘used’ home in this area will cost an average of $2,235 per year.  That is a $1,515 per year savings in basic energy costs . . . and if you increase that figure by 5% per year* to account for increases in electric utility rates, you come up with an estimated energy savings of $100,655 over 30 years of homeownership.  …That is enough to make anyone want to go ‘green’ with their next home!

To put the above savings in perspective, on a $200,000 (30 yr fixed) mortgage, if you go from a 6% rate to a 4% rate, you would save a total of $87,937 in interest over the life of the loan!

Brandon Cleveland
Meritage Homes at Lyon’s Gate
(Gilbert, Arizona 85295)

Click for current pricing & floorplans
Click for pictures of the onsite education center
Click for Going ‘Green’ in Gilbert (blog)

*SRP has averaged a 5% rate increase per year over past 20 years

Solar-Powered New Homes provide buyers with a true, quality of life advantage!

On June 26th 2010, Meritage Homes (NYSE: MTH) made history with the much anticipated grand opening of “Lyon’s Gate” in Gilbert, Arizona!

“…the first of its kind” – C.R. Herro, Meritage VP of Environmental Affairs

Lyon’s Gate truly is the first of its kind. The first production homebuilding community in the country to offer over $50,000 in advanced green building technologies at no additional cost to the homebuyer: It is widely considered the pilot project for the entire homebuilding industry . . . the future of new home construction.

Brandon Cleveland here, sales associate for Meritage Homes at Lyon’s Gate.  It has been 5 months since we grand opened this historic new neighborhood and when one considers the housing market we are in, the initial results & buyer feedback about our ‘green’ homes have been absolutely spectacular! 

COME SEE WHAT ALL OF THE FUSS IS ABOUT!  ….I’d like to invite readers out to see our onsite, green learning center (pictured below) for a closer look!

Brandon Cleveland
Meritage Homes at Lyon’s Gate
(Gilbert, Arizona 85295)

Click for current pricing & floorplans
Click for pictures of the onsite education center
Click for Going ‘Green’ in Gilbert (blog)