Hot Springs Market Updates



What is an Eco-friendly home?

“A ‘green’ home incorporates smart design, technology, construction and maintenance elements to significantly lessen the negative impact of the home on the environment and improve the health of the people who live inside. No matter your location or living situation, the opportunities for living a greener life at home are limited only by your imagination.” (Green Home Guide, US Green Building Council)

 

A recent CNBC study indicated that the ‘green’ homes market is expected to rise from 2 billion to 20 billion over the next 10 years.[1]  Driving the ‘green’ concept is two-fold:  escalating fuel prices and, that homeowners simply want to ‘do the right thing’ for the environment.  Older homes can be retrofitted with energy-saving appliances, windows, solar heating and insulation while new construction can be built entirely ‘green’ from the foundation to the roof.

 

If you want to purchase a ‘green’ home or wish to upgrade your own home to sell with a ‘green’ designation, consider some of the following information which consumers need to keep in mind when buying or retrofitting ‘green’.

 

Appliances:  Purchase only Energy Star® appliances.  Energy Star® qualified appliances incorporate advanced technologies that use 10–50% less energy and water than standard models. The money you save on your utility bills can more than make up for the cost of a more expensive but more efficient ENERGY STAR model.”  http://www.energystar.gov/

 

Green Home Building Materials:  Look for homes which use salvage materials such as cast-off wood planks for flooring. Recycling tile or previously used crown molding garners the same ‘green’ stamp of approval.  Bamboo flooring has become increasing popular the past few years because it is a rapidly renewable resource unlike hardwoods; such trees which can take years to mature in nature.   Paints and sealants which are non-toxic should also be a major consideration in making ‘green’ choices.

Windows and Doors:  Look for homes which use Energy Star® windows and exterior doors.  Both should be sealed tightly with non-toxic products to prevent leaks. 

Energy Efficiency:  When searching for a ‘green’ home, look for energy-efficient lighting, water heaters, cooling and heating systems.  Again, the Energy Star® designation applies to these appliances as well. 

Water Efficiency:  Look for homes with water-conserving irrigation systems.  Installation of a water sensor on the gutter or roof of the home should be an integral part of the irrigation system.  Landscapes with drought-resistant plants are evident of a ‘green-scape’.  Look for homes with landscapes that are covered with mulch or ‘hardscape’, such as stone or lava rocks to help keep the ground moist even in the driest of seasons as well as to prevent ‘heat spots’ from forming close to the house.  Large canopy trees and/or vine-covered screens shading the driveway and the exterior of the home help to keep air and heating costs down.  Zoned sprinkler systems, which water landscapes on a preset timer, are yet another ‘green’ home feature.  Other water-saving designs include faucets with aerator attachments, toilets with reduce water usage and any water-necessary appliances such as a dishwasher or a washing machine should also be designated as Energy Star®.

Indoor Daylight: ‘Green’ homes boast that daylight should illuminate at least 75 percent of a home’s interior.  This can be accomplished through energy efficient skylights and windows. 

Building Design:   Look for ‘green’ homes with light-colored roofs that deflect light and heat away from the home.  The home site should be oriented to take advantage of plentiful sunlight to reduce electricity light usage inside the home. ‘Green’ designated homes should be situated on the lot to capture breezes and allow for cooling and fresh air circulation without the use of an air conditioner.  Dual-glaze windows reduce heat gain in summer and heat loss during cold winter months.  It is important to remember that large homes use much more energy to heat and cool so choosing a smaller-sized home is a wise ‘green’ choice. 

Location:   Anytime a homeowner can use an alternate means of transportation such as mass transit, bicycle or walking to a location, this of course, reduces the use of gasoline and emissions.  Look for a home location which decreases automobile usage to and from daily work and play.  A ‘green’ home should be within walking distance of parks, schools, and stores.

 


Evaluating a Home's Energy Rating

 

 

When evaluating a home's energy-efficient features, it's very wise to hire a Professional "Energy Rater".  An energy rating is the most credible means of determining the current performance of the house.  You can find energy raters in your area at http://www.natresnet.org/.  For a reasonable price, an energy rater can provide substantive information about how a home performs with respect to energy use. 

 

The energy rating testing can then be used to emphasize the energy performance of the home, when it comes time to sell the home. If the energy rating indicates that the home qualifies for Energy Star, this is a great selling point.

 

However, if the energy rating indicates that the home does NOT qualify for certification, it is helpful to know this in advance for several reasons.  First, you would not want to advertise that the home is an Energy Star home if it’s not. Secondly, the energy rating may offer the homeowner a few opportunities to improve the score with retrofits or adjustments prior to the sale. Thirdly, if the homeowner chooses not to make any improvements, the energy rating report may be given to the buyer to help secure an energy-efficient mortgage or other green financing. 

 

With respect to "healthier features," some energy raters are also capable of assessing a home's indoor air quality. By definition, when an energy rater performs a blower door test, he/she determines the number of air changes per hour. Some professionals have even developed specialties in evaluating indoor air quality and other health-related features of a home.

 

 

 

Ways to retrofit a non-’green’ home to go-'green'![2]

 

Switch to compact fluorescent light bulbs

Program your thermostat

 

Plug air leaks

 

Tune up your heating and cooling (HVAC) system

 

Choose ENERGY STAR® appliances

 

Reduce water use

 

Switch to ‘green’ power See the US Department of Energy

 

Explore solar

 

Use low-VOC products

 

Plant trees to provide shade and wind protection for your house

 

Use native plantings

 

 

Check with your local utility company to see if they offer an energy-saving program. Often they will send out someone to check your home for leaks and send a free caulking and stripping kit.  Hot Springs residents can check out the Entergy (utility) site for residential, appliance and lighting calculators.

 

Some counties offer free assessments of your landscape and will print out an evaluation with suggestions on ways to improve water usage.  An example of such a Master Gardener program is here .

 

 

 

 

 

 

 

The Value of Efficiency
The table below illustrates the benefits of an energy-efficient home and mortgage. As illustrated, energy-efficient homes have lower energy bills. When purchasing via an energy-efficient mortgage or other green financing option, buyers often qualify for higher purchase prices. Please study the chart below.

(From Fannie Mae's Energy-Efficient Mortgage brochure.)

 

Typical Home

Home with Energy-Efficient Features

Purchase Price

$200,000

$203,000

Borrower Contribution

$6,000

$6,090

Loan Amount

$160,000

$162,400

Interest

5.85%

5.85%

Monthly PITI

$1,673

$1,698

Average Electric Bill

$186

$93

Total Expenses

$1,859

$1,791

Qualifying Income

$49,000

$48,584

Note: This example assumes that a new energy-efficient home will cost a bit more than a standard new home. However, increasingly, builders are able to build energy-efficient homes without charging an additional cost. In that case, the benefits of purchasing a home using an energy-efficient mortgage would be even greater.

This example demonstrates how green financing can create real benefits, not only for those who can afford the properties, but for first-time homeowners and others who may truly need a little help to qualify for the house they want.

 

Hot Springs Real Estate - The Kennedy Team


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Please join our city’s curbside recycling program, called the “Earth Angel” program.  For more information, click here or call 501.321.6911.  The curbside service is offered to residents inside the city limits only.  If you live outside the city limits, call 501.622.3658 for drop-off locations.


 

 

 

   
    
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This information has been collected from sources that are believed to be reliable, but is provided 'AS IS.' No representations or warranties as to accuracy, reliability or completeness of this information are made or implied, and all warranties are specifically disclaimed. Jeff Kennedy, Paulia Kennedy, and Debi Jones are licensed REALTOR®s in the State of Arkansas.

  

 

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