Are you looking for a new home? Perhaps you want to renovate your present home, or maybe you want to move to a home that is larger or smaller. If so, you are no doubt aware that green has become a significant issue in the housing industry. Green housing is a very broad topic, and includes everything from replacing regular light bulbs with compact fluorescents, to installing energy-saving appliances or natural fiber carpets, to reworking your landscaping to conserve water. As a homeowner, you could also call your home “green” if you have recently upgraded your heating and air system, installed new windows, or taken steps to improve your air quality.

Green is also in vogue in reference to community-wide efforts such as hike and bike trails, recycling activities, parks, and other green spaces. It may also include programs to retrofit neighborhoods or blocks for greater energy efficiency.

In years past, many green features have received attention and enjoyed popularity with consumers. Most have merit as part of an overall strategy to reduce utility bills and increase the use of environmentally friendly and renewable resources. Some, like using natural fiber carpets or low-VOC paints, are associated primarily with air quality. However, according to local real estate professionals, when it comes to green housing, today’s focus, whether at the individual or community levels, is almost exclusively on energy conservation, although the importance of saving water may come in a close second.

Why Energy Conservation?
What is the reason for this relatively narrow focus? Kim Armstrong, a REALTOR® with Keller Williams Realty, has a special NAR (National Association of REALTORS®) Green Designation earned by agents who want expertise in the buying and selling of green homes. She said that while some homebuyers express interest in environmentally sound housing concepts such as water conservation or air quality, we still need to increase public awareness about the importance of most green issues. On the other hand, she said, rising energy costs are a concern that just about everyone can relate to, which makes it a huge green issue.

Roger Voisinet is a REALTOR® with an EcoBroker® designation who works for RE/MAX Realty Specialists. He pointed out that another reason for the recent focus on energy conservation is that it is quantifiable. Although homebuyers may appreciate the environmental benefits of natural fibers or bamboo flooring, these concerns may not be sufficient to motivate them to purchase a particular house, especially when their funds are tight. However, they may be very excited about buying if they are assured that they will save a certain amount of money every month on their electric or gas bills. Similarly, homeowners contemplating renovations may be more inclined to invest in projects where they can see a return in the form of monthly savings. Current tax credits available for a variety of energy-saving projects also act as a powerful incentive, encouraging homeowners to choose these kinds of renovations.

Community-Wide Green
If you are living in or looking for a brand new home, you can almost count on it being energy-efficient. In most new homes, builders utilize techniques that result in long-term energy savings that far exceed those associated with older homes. Often they receive training and certification from organizations such as EarthCraft that require that they adhere to strict guidelines verified by special inspections to prove the new home meets exacting energy conservation standards. Families who live in these homes have a greater level of comfort and much lower utility bills compared to people who live in more conventionally built homes.

While building energy-efficient homes makes sense from the standpoint of individual consumers, in and of itself this activity may not have a significant community-wide environmental impact. Charlie Carter is a builder with Redlands Design & Construction and Chair of the Blue Ridge Home Builders Association’s Green Building Committee. He also teaches green building techniques at Piedmont Virginia Community College (PVCC). He referenced studies that show that even if every new home that goes up between now and 2050 is built to strict energy-saving standards, there would be virtually no dent in overall carbon emissions, an important measure of an activity’s environmental impact.

Existing homes and commercial buildings, on the other hand, are responsible for as much as 40% of our country’s carbon emissions. Most of these structures were designed when utility costs were lower and building standards less demanding, which means they are far less energy-efficient than new homes. Therefore, one key to reducing the environmental impact of our older housing stock is to renovate as many as possible of our existing structures. While this activity will contribute to the community’s well-being, it will also allow individual homeowners to enjoy greater comfort and reduced utility bills.

Fortunately, our community was recently chosen to receive a $500,000 grant to support an initiative called LEAP (Local Energy Alliance Program). LEAP is a deliberate regional program of energy and water efficiency for Charlottesville, Albemarle County, and U.Va. Bill Dunnington of the Virginia Energy Project was one of many individuals in our community who helped to write the proposal to fund LEAP. He described the ambitious goal of this project, which is to achieve 20%-40% efficiency in 30% to 50% of the businesses and homes in our area in 5-7 years by retrofitting buildings and installing renewable technologies. LEAP also aims at revitalizing the construction industry and creating green jobs. Our area was one of 16 municipalities to submit a proposal for this program and the only one which received a cash grant. For more information, see www.seealliance.org and www.va-leap.org.

Greening Your Home
If you want to enjoy a greener home, a good place to start is with an energy audit. While you can do an informal audit yourself, there are several reasons to hire a professional. A specially trained professional has tools, expertise, and experience and is able to do a thorough evaluation of your situation. Your auditor’s service will include a report that makes specific recommendations about which upgrades will have the biggest impact on your energy bill. Not only will this report assist you to make cost-effective decisions, but it may be required in order to take advantage of some of the many tax credit and rebate programs that will help offset the cost of your energy-saving renovations.

An important part of any professional audit is the blower door test, which helps find all your leaks. The blower door is a big fan that mounts in an existing doorframe. It pulls air out of the house, lowering the pressure inside. Outside air will then force its way back into your house through all of your leaks. Some of the obvious sources of leaks are windows, doors, attic access stairs, and can lights.

However, you may be surprised at some of the other leaky areas. REALTOR® Kim Armstrong recently had a blower door test done on her home, and learned she had more air coming in through light switches and outlets than was flowing in around her sliding glass door. The solution was caulk and a specially designed and inexpensive piece of Styrofoam available at Lowes that fits under the light switch and outlet plates.

Your auditor may also make recommendations about sealing ductwork, replacing windows, replacing your weather stripping or attic insulation, and upgrading your heating and air system. Lighting and appliances may also receive comment, since in most homes these two sources account for as much as half of your monthly utility bill. In some cases, tax credits of 30% of the cost up to $1,500 are available for projects completed before the end of 2010. Check with your accountant for details.

To find a professional auditor, start with a visit to the LEAP Web site at www.va-leap.org. More information is also available at www.energystar.gov.

Renewable Energy Sources for a Greener Home
Sealing leaks and installing more efficient appliances is a good start. However, if you choose to undertake renovations that make use of alternative energy sources, there is additional help available in the form of even more generous federal tax credits. These are as much as 30% of the cost of the upgrade with no upper limit and are available through 2016, so long as your improvement is placed in service before December 31 of that year. Qualifying projects include installation of geothermal heat pumps, solar panels, solar water heaters, small wind energy systems, and fuel cells.

State-level incentives may also be available. Grant money for residential solar and wind programs was available last November until funds were exhausted. These were federal funds administered by the Virginia Department of Mines, Minerals and Energy (DMME). A second round of funds may be available in the near future. Visit www.dmme.virginia.gov for more information.

Resale Value of Green Homes
Will your green home command a higher price at resale? One study found that every dollar reduction in annual fuel bills increased a home’s price $10 to $25, compared to a similar home without these energy upgrades. This means an upgraded heating and air system that resulted in a $300 reduction in annual fuel bills could increase your home’s sale price by as much as $3,000 to $7,500. More information and examples are available at www.energycheckup.com. Similarly a 2008 study (www.greenhouserealestate.net) in Seattle found that not only did green homes sell for more money (37% per square foot more), but their stay on the market was a lot shorter than the competition.

Special mortgage programs that reward energy efficiency are another indication of the value of green in the home marketplace. Lenders understand that buyers who have lower monthly utility bills can afford more home and as a result, they can qualify for a larger mortgage. From a seller’s standpoint, if your home qualifies as energy-efficient, not only do you reap the benefits before you sell, but when your home goes on the market, it will be affordable to more buyers.

Clearly green, at least in the form of energy savings, is popular and with rising fuel prices will likely become more so. As more people go green (and we can expect the LEAP initiative to accelerate this trend), it will be more and more difficult for homes that have not been renovated to compete successfully on the real estate market. This means owners who don’t upgrade will have to settle for lower prices when they finally do put their home on the market.

Perhaps of greater importance for those who have no immediate plans to sell is that they will also have to experience higher monthly bills and the discomfort that comes with a less-than-energy-efficient house. Roger Voisinet pointed out that while energy efficiency may be the answer to what people want, their question may have more to do with how to make their drafty family room a pleasanter place to spend time. If you are in this situation and weighing the financial aspects of upgrades, consider these less tangible benefits, especially if you plan to stay in your home awhile.

Celeste Smucker is a writer, editor and author of Sold on Me, Daily Inspiration for Real Estate Agents. She lives near Charlottesville.