On average, home buyers are willing to pay an additional $8,728 upfront on a home in order to save $1,000 a year in utility bills, according to NAHB’s recently released study, What Home Buyers Really Want (2019 Edition) (Figure 1). The study is based on a survey asking recent and prospective home buyers (people who bought homes in the previous three years or are planning to do so in the next three years) about what they want in a home and community.
It is important to note that while the average amount a home buyer is willing to pay is $8,728, the median is $5,000. The difference can be explained by the presence of some very green-motivated home buyers who are willing to pay more than $50,000 upfront to save $1,000 a year. It may also be the case that these particular home buyers have the means to make a bigger upfront payment. In fact, the study shows that home buyers who expect to pay more than $500,000 for their homes will pay an average of $10,560 more to achieve those savings, about 60 percent more than the $6,653 those buying the most modest homes (less than $150,000) are willing to pay.
An equivalent way to present this information is in terms of the rate of return a buyer requires on the up-front investment. If a buyer is willing to pay $5,000 up front to save $1,000 a year, this means the buyer requires an annual return of 20 percent.
For more valuable data on green features and what home buyers are willing to trade off, please visit BuilderBooks.com and download the latest edition of What Home Buyers Really Want.
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Appraising manufactured homes has its challenges. This new training course helps address them.
A new generation of high-quality, factory-built homes is providing a popular alternative in affordable housing to millions of Americans. And Freddie Mac is making financing certain manufactured homes possible through its CHOICEHomeSM program. The program will also make it easier for appraisers to value manufactured homes by allowing valuation professionals the use of site-built homes as comparable sales where there is no CHOICEHome sales available to compare.
Residential Realities Home price growth is slowing, housing inventories are tight, and a market correction is possible. And while appraisers working in the residential real estate sector say these trends can apply throughout the U.S., they note the reality is more nuanced: Each market essentially is local and has its own dynamics.
Better Together? The backbone of the valuation profession historically has been small, local shops run by hardworking entrepreneurs. Recently, the profession has moved in a different direction as a wave of consolidation has created larger industry players. Strong Vital Signs Health care is one of the hottest real estate sectors right now, but in terms of valuation, it’s also one of the most complex. Aging baby boomers and an increase in the number of insured individuals are among the drivers pushing demand for new health care facilities.
Also read our newest columns: On Point: Appraisal Institute President Stephen S. Wagner, MAI, SRA, AI-GRS, on how AI supports its nearly 80 chapters through events, education and administrative backing. Legal Matters: Mistakes happen, but which ones will get an appraiser sued? An analysis of past claims reveals the top risks. Front Lines: Warren B. Boizot III, SRA, on how the popularity of short-term vacation rentals is bringing new challenges for appraisers.Read all that and more in the
Wayne Miller, Chair of the Appraisal Standards Board, and John Brenan, Vice President Appraisal Issues at The Appraisal Foundation, will discuss how the adopted changes for the 2020-21 edition of USPAP balance appraiser flexibility while still protecting the public trust.Wayne and John will also answer your questions and comments.Send your questions to firstname.lastname@example.org.
WEBINARUSPAP Updates Explained May 22, 2019 1:00 PM ET Register
Comment Now!AQB Discussion Draft on PAREAThe AQB wants to hear from you! The comment deadline for the Discussion Draft on the Practical Applications of Real Estate Appraisal is June 2, 2019.To review the Draft, click here. Send your comments to: AQBcomments@appraisalfoundation.org.
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