Realtors and energy efficient homes.

[SoftwareEngineer]

Hi Folks,

I have a problem with realtors. Most look at a solar electric system as a weird eccentricity. I have a $36,000 installation with other improvements which keep my electric bill limited to the grid tie fee, which is about $16/month. I live in Arizona where most of my neighbors spend somewhere between $400 and $800 per month for electricity. So, my system is very successful and the savings is significant. However, realtors generally tell me the system has no value since the buyer my simply remove the system and throw it away. Does anyone know of a marketing or sales solution for this problem? MLS systems and Zillow do not have the right check boxes, data entries, or search capabilities. I have a nice realtor who I used to buy the house and I'd like to use her for the sale. Are there any educational resources I can point my realtor to so she can ramp up?

Regards,
Rob

[SunEagle]

Hi Folks,

I have a problem with realtors. Most look at a solar electric system as a weird eccentricity. I have a $36,000 installation with other improvements which keep my electric bill limited to the grid tie fee, which is about $16/month. I live in Arizona where most of my neighbors spend somewhere between $400 and $800 per month for electricity. So, my system is very successful and the savings is significant. However, realtors generally tell me the system has no value since the buyer my simply remove the system and throw it away. Does anyone know of a marketing or sales solution for this problem? MLS systems and Zillow do not have the right check boxes, data entries, or search capabilities. I have a nice realtor who I used to buy the house and I'd like to use her for the sale. Are there any educational resources I can point my realtor to so she can ramp up?

Regards,
Rob

Sad to say but there hasn't been much agreement that an existing solar pv system will raise the home value or make it a selling point. Surprising with a lot of people jumping into the home solar installation you would think there would by a lot of people wanting to purchase a house with a working system. It really comes down to who your market is and their desire to own a pv system for whatever the reason.

What I am surprised is that a realtor would not jump on the chance of promoting your very low electric bills due to the solar system. Lower utility bills was always one of the selling points when I lived up North concerning how much it cost to heat and light the home. It helped figure what your monthly expenses could be on top of the Mortgage.

I guess investing in a new kitchen has still has the best return on a home renovation.

[SoftwareEngineer]

Sad to say but there hasn't been much agreement that an existing solar pv system will raise the home value or make it a selling point. Surprising with a lot of people jumping into the home solar installation you would think there would by a lot of people wanting to purchase a house with a working system. It really comes down to who your market is and their desire to own a pv system for whatever the reason.

What I am surprised is that a realtor would not jump on the chance of promoting your very low electric bills due to the solar system. Lower utility bills was always one of the selling points when I lived up North concerning how much it cost to heat and light the home. It helped figure what your monthly expenses could be on top of the Mortgage.

I guess investing in a new kitchen has still has the best return on a home renovation.

Thanks for your reply. I'm beginning to think an alternative marketplace is needed. I have a nice house built in 2001 with a pool, etc. But, it has no bling or things that make the kitchen "pop." I don't think realtors and listing systems have the ability to efficiently and reliably connect energy conscious sellers with similar buyers. Traditional home buyers are still crazy and don't crunch their numbers. And, of course, that is why so many of them go flat busted broke.

[Sunking]

Well I got a clue what might be going on if in the Phoenix area. SNOW BIRDS.

Many of the residents on the upper income end where homes are actively trading are Snow Birds who only live in the area 4 to 6 months of the year. Otherwise the homes are vacant during the hot months. In addition AZ got creamed in the housing bubble. Still a large percentage of homes under water and the market is still flooded Short Sales. There is no added value for a buyer when they can get it for nothing in a depressed market.

So for some reason Realtor's see it as a obstacle to making a deal.

[SoftwareEngineer]

Well I got a clue what might be going on if in the Phoenix area. SNOW BIRDS.

Many of the residents on the upper income end where homes are actively trading are Snow Birds who only live in the area 4 to 6 months of the year. Otherwise the homes are vacant during the hot months. In addition AZ got creamed in the housing bubble. Still a large percentage of homes under water and the market is still flooded Short Sales. There is no added value for a buyer when they can get it for nothing in a depressed market.

So for some reason Realtor's see it as a obstacle to making a deal.

Thanks for your reply. Your points are very true. Where I live has virtually no snowbirds, but the are plenty in surrounding areas. In my neighborhood, I think over half of the homes have gone through a foreclosure. I'm lucky, because I bought near the bottom of the market, back in early 2010. It was built in 2001 and I am the fifth owner. My home is about ten minutes from the new Apple sapphire manufacturing facility, so I might get lucky.

[Rdjntx]

with it being that close to apple, and apple employees are by and large younger and more "green" than older folks, IMHO you will be better off to wait until they start moving in / up and selling. you should make sure that whatever realtor you use lists the solar install prominently in the add and highlights the 16 dollar a month electric bill. maybe enlist the help of a neighbor with a similar sized home and see if they will let you use a break down of their electric bill (without their personal info obviously) for comparison purposes in the information sheet on the house.

Realtors think they know it all when it comes to selling a home, and while they are supposed to be the experts, owners have an obligation to protect their interests and insist on some things regardless of what the realtor says. The only one going to look out for you is you.

Thanks for your reply. Your points are very true. Where I live has virtually no snowbirds, but the are plenty in surrounding areas. In my neighborhood, I think over half of the homes have gone through a foreclosure. I'm lucky, because I bought near the bottom of the market, back in early 2010. It was built in 2001 and I am the fifth owner. My home is about ten minutes from the new Apple sapphire manufacturing facility, so I might get lucky.

[SoftwareEngineer]

with it being that close to apple, and apple employees are by and large younger and more "green" than older folks, IMHO you will be better off to wait until they start moving in / up and selling. you should make sure that whatever realtor you use lists the solar install prominently in the add and highlights the 16 dollar a month electric bill. maybe enlist the help of a neighbor with a similar sized home and see if they will let you use a break down of their electric bill (without their personal info obviously) for comparison purposes in the information sheet on the house.

Realtors think they know it all when it comes to selling a home, and while they are supposed to be the experts, owners have an obligation to protect their interests and insist on some things regardless of what the realtor says. The only one going to look out for you is you.

Thanks for your comment. I think the Apple plant is my best bet. Surprisingly, neither Apple nor the manufacturing contractor, GT Technologies, have a way to connect me with the people who are locating in Mesa. Most of those folks are moved here with a full year of rent paid by the company. They started moving here last February, so they will have to get serious about buying a place very soon. I'm going to put my house on the market in October, so the timing should be good.

[ZoNiE]

I'd find another realtor who can use your $16 monthly bill to market the house. She may be nice, but this is business. They need to earn the 6%.

MY SRP bill was $400 last month. I want your system.

Apple doesn't own or run the plant you are talking about. I'd ask their HR people who handles their relocation and there usually is a cadre of realtors the relo company will use. You may also want to ask someone at Intel if you know anyone inside.

[SoftwareEngineer]

I'd find another realtor who can use your $16 monthly bill to market the house. She may be nice, but this is business. They need to earn the 6%.

MY SRP bill was $400 last month. I want your system.

Apple doesn't own or run the plant you are talking about. I'd ask their HR people who handles their relocation and there usually is a cadre of realtors the relo company will use. You may also want to ask someone at Intel if you know anyone inside.

Thanks for your response. The plant is a strange deal. Apple bought the real estate and is leasing it to GT Advanced to produce parts for Apple. However, there will be some Apple people permanently assigned to the plant. My savings is due to a lot of factors, including heat rejection film on windows, solar screens, and a flow-through evaporative cooling system that flows through the house and into the attic. I'm going to make a YouTube video about the cooling system. Right now, the inside of my house feels like a perfect day in San Diego. I also have the usual zoned HVAC, but it's only needed between 12 and 18 days/year. During winter, I blow warm air during the day and raise the core temp of the house. Last winter, I ran the furnace for about 15 minutes to make sure it still works. I've run standard AC on six days this summer.

[Rdjntx]

Apple doesn't own or run the plant you are talking about. I'd ask their HR people who handles their relocation and there usually is a cadre of realtors the relo company will use. You may also want to ask someone at Intel if you know anyone inside.

I would like to know your source for this statement. What I have read would SEEM to indicate otherwise.

[SoftwareEngineer]

This is an interesting article about the ramp-up at the plant.

http://www.macrumors.com/2014/08/04/apples-sapphire-volume-production/

This discusses that some Apple employees will be assigned to the plant. The article says only three are new hires, but my understanding is others are being transferred.

http://www.macrumors.com/2014/01/14/apple-hiring-arizona-sapphire/

This shows Apple negotiating for a tax deal. As a side note, the land was purchased from GM and the building constructed by First Solar using stimulus money designated for renewable energy. First Solar sunk the cash into something that could be sold later. It was legal, but stinky.

http://www.macrumors.com/2013/11/19/apple-gets-tax-break-approval-for-arizona-sapphire-glass-facility/

Most of the workers are hush-hush about everything and even outside vendors who deliver food won't tell you anything. However, just enough leaks out to know there will be more than a few Apple blue badges in the area. Again, it's an odd situation. The people at the local Apple stores will tell you Apple simply owns the property. Realtors tell you Apple employees will be coming off rental reimbursement after the first of the year. And "I don't know" is on third. I don't blame anyone for being confused.

[SoftwareEngineer]

This is an interesting article about the ramp-up at the plant.

http://www.macrumors.com/2014/08/04/apples-sapphire-volume-production/

This discusses that some Apple employees will be assigned to the plant. The article says only three are new hires, but my understanding is others are being transferred.

http://www.macrumors.com/2014/01/14/apple-hiring-arizona-sapphire/

This shows Apple negotiating for a tax deal. As a side note, the land was purchased from GM and the building constructed by First Solar using stimulus money designated for renewable energy. First Solar sunk the cash into something that could be sold later. It was legal, but stinky.

http://www.macrumors.com/2013/11/19/apple-gets-tax-break-approval-for-arizona-sapphire-glass-facility/

Most of the workers are hush-hush about everything and even outside vendors who deliver food won't tell you anything. However, just enough leaks out to know there will be more than a few Apple blue badges in the area. Again, it's an odd situation. The people at the local Apple stores will tell you Apple simply owns the property. Realtors tell you Apple employees will be coming off rental reimbursement after the first of the year. And "I don't know" is on third. I don't blame anyone for being confused.

In Parkwood Ranch, where I live, realtors walk around knocking on doors asking to sell houses. I've had eight different realtors knock on my door since last February - some multiple times. However, none seem to understand the solar system has any value. And, none seems to believe that home buyers care about total cost of ownership. Folks, we are in the slim minority of people who do practical math.

[EEMLoanGuy]

I told you before - no advertising unless you pay - next time I ban you

[SoftwareEngineer]

There are only a few realtors in the valley that know how to properly value and market solar. Preferably you want a realtor with their Green and Ecobroker designations. There are a few realtors in the valley that are working to create a "green MLS", but for now it's all about working with a realtor that is a known commodity in the "green" marketplace as they tend to work with buyers that value design elements like Solar PV.

Mod note - removed ad link All are extremely knowledgeable and as current and past leaders in the U.S. Green Building Council Arizona Chapter they are willing to share their knowledge with others.

Additionally, I'd suggest investing in a HERS report. The HERS report is a great addition to the listing documents as it will document energy savings and provide a net present value.

Facebook advertising can be a great way to get the added attention your property needs. You can create a free landing page that has a video and pertinent facts and you can create a lead form where people need to fill in their contact information to download a copy of the HERS report. The realtors and loan officers I know in the valley that are using FB are also having great success.

Thanks! I'll use that info.

[EEMLoanGuy]

Thanks! I'll use that info.

Sure thing. I have a vested interest in making sure that homes in the valley with solar PV sell for the highest dollar so feel free to reach out anytime.