Why Energy Efficient Homes are the Norm Today

Builders conduct quite a few studies before launching a residential project because the stakes are usually high. They do feasibility studies and analyze the market. And only the most viable projects are approved. Still, all that pro forma work merely reduces the risk; it doesn't eliminate it.

Until recently, builders only needed to focus on codes for guidance on ensuring energy efficiency of their homes. However, in many markets across the country, houses with third party energy efficiency certifications are attracting more buyers. In fact, some prominent builders now only offer homes with energy efficient certifications. This has made it necessary for builders to incorporate some form of energy efficiency into their projects.

In today's housing market, the number of buyers who factor in the cost of ownership is steadily increasing. Since energy efficiency is crucial for reducing utility bills, more people are looking for homes boasting of Energy Star certifications.

What if you don't already offer energy certifications on your homes? That is no cause for major concern now because you can choose from several certification options. The National Green Building Standard is a voluntary certification developed by the International Code Council and the NAHB in 2009. This has been approved by ANSI.

Over the last 5 years, about 30,000 new houses received NGBS certification, and almost 2,000 homes are waiting for approval.

Since the certification is non-prescriptive, there is no way builders can take short cuts. That also explains why NGBS is the only green certification approved by ANSI.

There are several other competing standards and each one has its proponents and benefits.

Depending on the kind of competition you face in your local market, you need to know more about each of these certifications and choose the one that allows you to differentiate your products from your competition.

This year will be remarkable for builders in many ways. The housing sector is expected to register exponential growth in 2014. This year, buyers of all segments are expected to enter the market. In 2013, the real estate market received a major boost from investors who purchased a large number of properties. This helped dry up the existing inventory and also drove the prices up.

In 2014, the market will see the participation of more entry level buyers. And then we will also get to know more about the specific buying preferences of people aged 18 to 32. Since many of these buyers have waited several years to enter the market, they will have a decent understanding of the products. They will also be more interested in learning about ways to make their home more energy efficient and comfortable.

There is enough evidence to prove that buyers are showing greater willingness to pay slightly higher prices for homes that possess energy-efficient certifications.

In fact, energy efficiency has become the norm today, and builders can no longer ignore it. The year 2014 will be a great year for builders who have exciting projects on offer. But the risks associated with the trade are also becoming bigger. Not offering homes with energy-efficient certifications is the biggest mistake that builders can commit now.