October 2009

 There is a growing trend for home builders to build green home plans or at least implement green home design in their new home plans.  They are doing this because their is a growing demand for green homes.  So, what is a green home?  A Green Home is a home that is usually certified based on criteria set up by a third party program such as ENERGY STAR or the NAHB NATIONAL GREEN BUILDING PROGRAM.

Why would someone want a green home?  The answer to this question falls into two camps depending on what you want to save.  Some want to save the planet while others just want to save money.  During our current recessionary times I think most are focused on the latter while saving the planet is just a perk.

Currently I am marketing a green home for sale at 8604 SW 57th ST.  (embarrassing plug I know OPEN HOUSE SAT & SUN 12-5 PM).  This home is being certified by both of the aforementioned programs.  Some of the money saving features are low-E windows, Energy Star appliances, energy efficient HVAC, and energy efficient tankless hot water heaters. Some of the planet saving features are the use of indigenous materials and low VOC carpet.   It gives the best of both worlds. Save the planet and save money.  The save the planet push is important to many people and may and should endure but I think we can agree that all people are interested in saving money and that the desire to save money will definitely endure.  This is an idea that is definitely here to stay.  As an example the green home mentioned above was designed to cut utility bills by one half of what they would be on a non-green home.  At 3300 SF it is assumed the bills would be about $500.  If you save half of that you would be saving $250 a month.  The additional cost to make this home green is about $9,000 which financed in the purchase would equal about $50 a month.  So you are spending $50 a month to save $250 a month plus you are helping your environment and your health.  Not a bad deal at all. 

I believe this trend will endure and at some point will become the standard.  If you are buying a new home you should definitely consider buying a green home.  Else, you may find yourself spending money to update your home to green just to be able to sell it.

Right now the Oklahoma City real estate market is the Tale of Two Markets.

We have simultaneously a Buyer’s Market and a Seller’s Market.

How can this be you might ask?  Well let’s take a look at the dynamics.

First we have the clock ticking on the first time home buyer tax credit.  For those of you that don’t know, it is an $8,000.00 Tax Credit for first time home buyers that purchase before December 1, 2009.  There are many Buyers looking to take advantage of this who have procrastinated and will now find themselves competing for these first time home buyers houses that are typically around $100,000.  As we close in on the end of the Tax Credit this market is going to start looking like the chaos surrounding a blue light special at K-Mart.  This all adds up to a Seller’s Market for the Move Up Buyer who is selling to the first time home buyer.

The typical Move Up Buyer will be purchasing a home between $150,000 and $300,000.  In this price range you can definitely hear the crickets chirping through the silence.   What does this mean?  Deep Discounts.  Lower listing prices.  And Sellers that are willing to take offers considerably less than the already discounted listing price.  In short a Buyer’s Market.

So, if you are a Move Up Buyer, you are Selling in a Seller’s Market and Buying in a Buyer’s Market.  It doesn’t get any better than this.  And if you think you are missing out on the Tax Credit you just aren’t doing the math.  Tax Credit = Seller’s Market on First Time Home Buyer houses.  Seller’s Market=Premium Price on the Move Up Buyers Sale.  Thus a percentage of the Tax Credit is being passed through to you.

Do the math and then go find that Dream Home that is only attainable in this unique set of circumstances.