If you're a fix-and-flip investor who has been thinking about incorporating more environmentally friendly materials into your flip renovations, you might be interested to know that a recent National Association of Home Builders (NAHB) survey reveals that home buyers prefer green over non-green amenities when they are given a choice--and half of them say they are willing to pay thousands more for a green home if they are shown how those amenities will save on utility costs.
The NAHB's 2019 edition of “What Home Buyers Really Want,” is based on a nationwide survey of 4,000 recent home buyers (or those who plan to buy a home within the next three years).
Do Home Buyers Care About Environmentally Friendly Amenities?
74% Want features and finishes made of durable materials that will last longer (even if they cost more)
65% Prefer low-maintenance landscaping with minimal watering and upkeep
63% Want their home to make efficient use of the sun's energy for heating and cooling
63% Prefer HVAC that is designed to be energy efficient
35% Prefer conventional landscaping with lots of lawn, trees, shrubs
26% Prefer features and finishes that cost less, but will need to be replaced sooner
Which Green Features do Home Buyers Find Most Desirable?
89% Energy Star-rated windows
86% Energy Star-rated appliances
77% Energy efficient lighting
77% Triple-pane insulated glass windows
73% Insulation above minimum code requirement
63% Water-conserving toilets
61% Tankless water heating
59% Solar water heating and electricity
It is important to keep in mind that home buyers will need to be made aware of the potential energy savings these amenities can provide--especially if these features increase the home's purchase price. This is where finding the right real estate agent to market and sell your eco-friendly house flip is imperative. A knowledgeable agent who can highlight the benefits of environmentally friendly amenities will help potential buyers who are interested in "going green" see your eco-friendly features in the best possible light.
What Do Realtors Say Home Buyers Want?
The National Association of Realtors (NAR) conducted a survey of Realtors and they report that eco-friendly homes are in higher demand now more than ever.
81% said home buyers are interested in reduced utility costs
70% found promoting energy efficiency in home listings is valuable
67% said clients desire efficient use of lighting
64% reported their clients are concerned with indoor air quality
While you are estimating your fix-and-flip project's ARV, and as you decide which materials you think buyers will get excited about, try viewing your options through a "green" lens. If potential buyers are looking for the value green features can add, and it will benefit your business' bottom line, consider incorporating the use of environmentally friendly materials into your fix-and-flip business plan.
If you are ready to explore financing options for your next flip project, start your fix-and-flip financing journey with Anchor Loans here opens in a new window. We can fund your next fix-and-flip investment in as few as 5 to 10 days.