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.

Green Building That Is Out Of The Box

As a builder, you want to build high-performance homes that will stand the test of time, be beautiful, and give your clients maximum function. It is important, however, to do your part in being more sustainable as well. That is why you want to consider taking existing homes and turn them into products to build a new home, which is good for the environment and can offer materials that you may not even be able to get anymore.

Rethinking Building A Green Home

Most people think of a green home as one that is energy and water efficient, but it can be so much more than that. Reusing materials, such as bricks, flooring, windows, and molding, can be a way to be sustainable and green as well. Deconstruction can be more expensive and time consuming than a classic home demolishment, but its benefits to the environment, homeowner, builder, and the community more than outweighs the extra cost. You may even be able to get a tax deduction for donating materials that were saved.

What is deconstruction and how is it different than demolishment? It is when a building is permanently dismantled in a way to salvage as much of the materials possible. From windows to bricks to wood flooring to moldings and more, most any material can be saved to allow it to be reused in another home or to serve another purpose. Demolishment does not concern itself with salvaging and takes the broken and unusable materials to the dump.

The best benefit to deconstruction and reusing materials is that many materials, such as those found in a 100-year old home, may not even be available anymore. Bricks from long closed down brickyards and old-growth wood cannot be purchased at your local home improvement store. They offer not only a functional purpose, but also a richness and beauty that cannot be found with new materials.

Builders Should Think Green

What if there is not an existing home to deconstruct? A builder should be thinking about green long before the site is even cleared. Whether they purchase reclaimed materials from a supplier or include more environmentally friendly materials found at the building supply, being green is not just a color for St. Patrick’s Day. It is a way of life that many clients are choosing to espouse not just in their everyday life, but in their building choices as well.

By finding a deconstructed material store or site in your community, you can not only build with materials that have stood the test of time, but also save the environment by decreasing the distance that they will be transported and the energy used in manufacturing new materials. This is an important consideration for many buyers, which is why you want to be sure that you consider adding this to your business practice.

If you are looking for a way to bring new clients to your building business, think green. It may be the key to taking your company to a new level with an entirely new demographic of clients. Consider deconstruction for your projects. You may find that it can make your homes even more beautiful, as well as green and environmentally friendly.

Smart Green Retrofits for Managing Energy Bills

When it comes to energy savings and green home improvements, instead of expecting huge returns, understand the latest bottom line – you can hold against skyrocketing energy costs by going in for some smart retrofits.

In general, energy prices have increased substantially in the last 10 years, especially in certain parts of the country. Even though there was a slight fall in natural gas prices since 2008 and there was stability in electricity prices for a while, there have been upward trends in prices of both since 2011.

According to the estimates of the Energy Information Administration of the US, there will be an average yearly increase of 2.3 per cent of the costs of residential energy right through 2035. If these projections are accurate and your average annual energy bill is $2,200 today, an increase of 2.3% works out to $50 more in the first year if your consumption pattern stays constant. In such a scenario, you’ll have a bill close to $4,000 by the time you get to 2035. Ouch, that’s going to pinch.

Dependable energy saving retrofits

When the sole reason for making retrofits is managing energy bills, look out for projects that offer the maximum returns for your investment.

As a rule of the thumb, try to fight the 2.3% yearly average by going in for green home improvements which reduce your energy usage by 5% or above and require a reasonable initial investment. Remember to find out whether your state government or utility offers tax credits and rebates for such improvements.

Some suggestions:

1. Insulate and seal ductwork running through spaces without heating. Though it may not appear glamorous, doing this in places like the attic and garage can improve heating system efficiency by 20% and you might manage a 5% overall bill reduction. A few hundred dollars of investment will be required for hiring an HVAC pro for the job and labor and material costs.

2. Get a programmable thermostat. If you don’t have one already, getting it and programming it correctly can help you save about 8% on your energy bills on an average.

3. Seal air leaks and add attic insulation. This is one of the soundest energy-saving improvements. By sealing and insulating your home, you can bring down energy bills by almost 10%. Regard upgrading attic insulation and sealing air leaks as a combination job for maximum benefits.

 

The bottom line

Don’t expect huge savings in your energy bills when you opt for green home improvements. It makes better sense to go in for green retrofits that are likely to offset increasing energy prices.