Why Lenders Should Fund Green Homes

Green building practices are becoming the norm, but that is hardly surprising. Green buildings are healthier and more energy efficient. Since the quality of air present in these buildings is better, people living or working here fall ill less often. They also seem to possess a better attitude towards life and work.

In addition, green building techniques lead to reduced energy bills. Commercial establishments that have adopted green building standards witness an overall reduction in expenses. This leads to higher profits.

Adopting green building standards is relatively easy because most green building products do not cost much more than traditional products.

Companies are constantly looking for newer ways to manage their property more effectively. Consequently, they are adopting green building standards in a big way.

Health benefits of green building

Green building improves indoor air quality. Studies have also revealed that children living in green homes are less susceptible to allergy attacks and asthma. Better still, buildings that have adopted green technologies tend to command higher prices. Although benefits are quite clear, developers are still struggling to undertake green improvements. This is probably because many green products that we use today are relatively newer products and hence there is no reliable usage data. It is not exactly clear whether they possess the qualities they are said to have.

Getting financing is another big problem that developers face. Banks simply don't understand how green building creates more valuable homes. As a result, they fail to properly assess the value of these buildings. Since more and more builders will adopt green building standards in the coming years, builders need to educate themselves about the benefits of this new building standard. Appraisers also need to understand how green features increase the value of a property.

Many people believe that creating awareness is essential to change lending policies about green building.

Why lenders should embrace green homes

More and more builders will start adopting green building strategies in the immediate future. This will increase the need for funding. Lenders need to realize that besides the owner of the property and the environment, green building is profitable for them as well.

Green construction amounts to several billion dollars now. Currently over 100 million homes require energy improvement. As a result, there is huge demand for green remodeling.  Lenders who heed the call will reward themselves with a great business opportunity.

Lenders who go green can 'future-proof' their lending practices while at the same time contributing towards conserving our precious resources.

The fact that green buildings are selling faster is pretty evident. They also command higher prices. As far as the lender is concerned, green homes are safer investments because of improved collateral. They also require less cost to operate. Green homes tend to sell for a 7.5 percent price premium.

Green homes consume less energy. They are also healthier because of the improved air quality. Although they cost more than traditional homes, many buyers don't mind paying a price premium when benefits are clearly evident.

Green homes are here to stay. It is high time the lenders changed their policies and embraced these eco-friendly building practices.

 

Need lead product solutions? iLeads delivers results that fits your needs! We are a lead solutions provider with lead generation covering Insurance, Lending, Real Estate, Direct Marketing, as well as Lead and Data Analytics. Contact iLeads today!