Should You Choose Positive or Negative Mortgage Points?

While picking out a mortgage, you might be faced with the option of using positive or negative mortgage points, which can alter your interest rate and your closing costs.

But what are they? Which should you choose, if any?

Positive Mortgage Points

If you want to lower your interest rate, try paying an upfront fee at closing. This is known as buying positive points, where each point is equal to 1% of the mortgage.

One point typically knocks off about .25% of the interest rate. So if you have a $400,000 mortgage at a 6% rate, and you pay $4,000 upfront—1% of the mortgage, or one point – the interest rate will be reduced to 5.75%.

This means lower monthly payments. With a typical mortgage lasting 15-30 years, positive points can save you a good amount of money over the loan period.

You will also want to calculate how many months it will take you to recapture the pre-paid interest—otherwise known as “breaking even”. You will want to retain the mortgage for at least that long to make paying for those mortgage points upfront worthwhile.

Negative Mortgage Points

In contrast to positive points, applying negative points to a mortgage increases your interest rate but can reduce closing costs. For example, if you take one negative point, your lender might increase your interest rate by .25%—but give you 1% of the loan as a credit to help pay off closing costs.

The downside: even with reduced closing costs, you end up paying a higher monthly rate with negative mortgage points.

Weighing Your Options

Buying a positive point isn’t always a positive thing, and incurring a negative point isn’t always a negative thing. Depending on your financial needs and home-buying purpose, either one might work.

For example, positive points may be better for these situations:

• You plan to see out the entire mortgage (the house will be your “forever” home).
• You calculate exactly how long you need to keep the mortgage in order to break even—and will keep their mortgage at least until then.
• You have enough money to pay both the point cost and the closing fees—and have enough money in savings leftover.

Negative points may be better for buyers in these situations:

• Do not have enough money to pay the closing costs or would need to empty their savings to do so.
• Have large mortgages with high closing costs.
• Do not plan on seeing their mortgage through to the end (the house is just a starter home).

It’s always a smart idea to meet with your accountant or financial planner before taking on any additional costs for your new home.

If neither mortgage points option feels right for you—or does not meet your financial needs—ask your lender for another loan without any points.

Origin Article From: www.realtor.com | Written by: Craig Donofrio

Buying A House? 4 Reasons To Do It Now

Here are four great reasons to consider buying a home today, instead of waiting.

1. Prices Will Continue to Rise

The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects appreciation in home values over the next five years to be between 30.8% (most optimistic) and 9.4% (most pessimistic).

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Although the Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage are currently around 4.2%, Freddie Mac is projecting that rates will increase to 5.2% by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3. Either Way, You are Paying a Mortgage

As a research paper from the Joint Center for Housing Studies at Harvard Universityexplains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

4. It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But, what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe it is time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Original Article From: www.keepingcurrentmatters.com | Written by: "The KCM Crew"

Home Safety For Seniors Made Easy

As seniors grow older, they often find their homes need to be upgraded to suit their changing needs. This includes simple, easy-to-do, home safety improvements to reduce their risk of falling or getting injured, although some more substantial upgrades may also be required.

Luckily, these renovations can be done to any home, and there are even ways to get help paying for the more expensive home safety upgrades.

Simple Home Safety Precautions and Modifications

• If your loved one lives alone, consider purchasing and installing an emergency call or medical alert system.
• First-aid kits and emergency measures should be easily accessible and not placed on a high shelf.
• Seniors with arthritis or grip difficulty can benefit from replacing doorknobs with levers.
• Make sure all doors open and close easily. Regularly check for loose screws on doorknobs and hinges.
• Run cords and electrical wires along the walls using cable clips or under rugs to keep them from tripping up your loved one.
• Make sure rugs don’t slip by applying caulk or grip tape to their undersides.
• Install and mount a surge protector in a safe, easy-to-reach place to avoid having to crawl or stoop to access out-of-the-way power outlets.

Securing the Bathroom

Make sure there are no leaks from the sink or bathtub to create a slippery floor. Be sure to cover the bathroom floor and the bathtub floor with non-slip mats.

An accessible sink should be installed for those who have difficulty bending down or for seniors in wheelchairs. Similarly, the toilet should be at a suitable height for those who have difficulty getting up and down. Install handrails near the toilet for stability—don’t rely on shower rods or any other nearby fixtures not specifically meant for this purpose.

Install handrails in the shower and grab bars in the bathtub to make getting in and out of the tub easy.

Lighting Is Key to Fall Prevention

Falls are the number one cause of injuries to seniors, so be sure the house is well-lit. Install as many night lights and lamps as necessary. All pathways—and especially stairs—should be illuminated.

To cut down on energy usage, use LEDs in stairwells.

Sensor light switches can do away with the need to blindly scrape along the wall for a light switch from room to room at night. Hand-held remotes or voice-activated sensors for lights can help seniors moderate light levels from a comfy position in a chair or bed.

Outside the house, motion-activated lights can provide security and help seniors get in and out of the home at night.

Get Financial Help

Upgrades can be expensive, especially if you need thousands of dollars worth of work done.

Luckily, the government has some programs in place to ease the cost burden.The USDA’s Very Low Income Housing Repair program can offer up to $7,500 in grants and up to $20,000 in 1% interest loans for eligible seniors.

There may also be state-specific programs for your area, so check with your local Area Agency on Aging to see what may be available.

Original Article From: www.realtor.com | Written By: Craig Donofrio/ Wendy Dickstein

Fact Or Fiction: A Tax On Real Estate Sales

On January 1, 2013, the Net Investment tax went into effect. Despite numerous articles and columns reminding consumers that this tax does not apply to every real estate sale, rumors continue to keep flying all over the country, claiming that the Health Reform legislation Congress enacted includes a sales tax on all real estate sales. While there is a tax, it does not apply to everyone.
   

The Health Care and Education Reconciliation Act of 2010 was signed into law by President Obama on March 30, 2010. It is a comprehensive and extremely complex piece of legislation. One section (1402) is entitled "Unearned Income Medicare Contribution" and does impose a 3.8 percent tax on any profit on the sale of real estate – residential or investment.

But it is aimed at high-income consumers, who comprise a small majority of American citizens.
Let's look at the true facts of this new law.
First, it is not a sales tax, nor does it impose any transfer or recordation tax. It is often called a "medicare" tax because the moneys received will be allocated to the Medicare Trust Fund, which is part of the Social Security System.


Next, if your income (technically called "adjusted gross income) is less than $200,000, you are home free. The income thresholds are clearly spelled out in the law. If you are married and file a joint tax return with your spouse, the law will apply only if your income is over $250,000. (If you and your spouse opt to file a separate tax return, the threshold is reduced to $125,000. For all other taxpayers, you have to earn more than $200,000 in order to be under the new law.
The up-to-$500,000 exclusion of gain for married couples filing a joint tax return (or up-to-$250,000 for single taxpayers) has not been repealed. Nor has the right to deduct mortgage interest and real estate tax payment been eliminated.


How is the tax calculated? It is a complex formula that could be called "the accountant's protection act". As a taxpayer, you (or your financial advisor) must determine which is less: the gain you have made on the sale of your house or the amount that your income exceeds the appropriate threshold.
Complicated? Yes. Let's look at these examples. Your adjusted gross income is $150,000. You sell your house and made a profit of $400,000. There is no change in the way you determine your gain: you take your purchase price, add any major improvements you have made over the years, and subtract that number from the net sales price. Based on this formula, you and your spouse have owned and lived in the property for at least two out of the five years before it was sold. Accordingly, you are eligible to exclude all of your profit; you are not subject to the new 3.8 tax. Keep the money and enjoy.


Change the example so that your adjusted gross income is $300,000. Since you are eligible to take the profit exclusion of up-to-$500,000, once again you do not have to pay the Medicare tax; your entire gain is excluded, and thus there is no profit to tax.
But let's assume you strike it rich and have made a profit of $600,000. Your income is $300,000. You can only exclude $500,000 under current law, so you will have to pay capital gains tax on the remaining balance. The rate currently is 20 percent, so you will owe Uncle Sam $20,000 ($100,000 x 20%).
But since your income is over the threshold, you now have to pay the 3.8 percent tax. But on what amount?


As indicated earlier, the tax is based on lesser of your profit or the difference between the threshold and your income. Your profit is $100,000. The difference between your income and the threshold is $50,000 ($300,000 - $250,000). In our example, the lower number is $50,000, and you will have to pay an additional $1900 to the IRS (3.8% x $50,000).
According to statistics provided by the National Association of Realtors, the median average sales price for homes in the United States (as of July, 2014) was $213.400. Clearly, none of these homes could make a profit of even $250,000, so if you qualify for the exclusion of gain requirements, you will not be impacted by this new law. Those requirements are: you have to have owned and used the property as your principal residence for two out of the five years before it is sold.
Of course, in homes where a large profit will be made, some home owners may be hit with this tax. But the large profit that you make should offset the nominal tax that has to be paid.
Since the law applies to all forms of real estate, including vacation homes, you should consider consulting with your tax and financial advisors as to your exposure.


Original Article From: www.RealtyTimes.com | Written by: Benny L. Kass

Selling Your House? 5 Reasons To Do It Now!

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? Can buyers qualify for a mortgage?  These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are five of those reasons.

1. Demand is Strong

There is currently a pent-up demand of purchasers as many home buyers pushed off their search this past winter & early spring because of extreme weather. According to the National Association of Realtors (NAR), the number of buyers in the market, which feel off dramatically in December, January and February, has begun to increase again over the last few months. These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition Now

Housing supply is still under the historical number of 6 months’ supply. This means that, in many markets, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future. Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen.  Selling now will make the process quicker and simpler.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate in the low 4’s right now. Rates are projected to be over 5% by the end of next year.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market and pricing it so it sells. Perhaps, the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

Original article from www.KeepingCurrentMatters.com | Written by: The KCM Crew

9 Ways Becoming A Homeowner Can Change Your Life

Homeownership. It shifts so many things. If you're coming from an apartment, you may experience conveniences like direct-access garages and walls that aren't shared for the first time. If you've been renting a home, you will probably feel a new sense of security and peace of mind once the mortgage is in our name. Not to mention the itch to repaint, re-imagine, and redo at least a few dozen things.

Want to know just how becoming a homeowner can change your life? Read on.

1. Financial Security

"The largest measurable financial benefit to homeownership is price appreciation," said Investopedia. "Price appreciation helps build home equity." Added Real Estate ABC: "The principle you pay on the mortgage is like putting money in the bank, in the form of equity."

2. Peace of mind

If you worry every time your lease comes up for renewal, those days are gladly over. Unless you refinance or take cash out once you have enough equity, your house payment is your house payment.

3. Pride of ownership

The feeling you get when you come home to your place - the place you scrimped and saved for and the place that represents a lifelong dream - well, there's just no substitute.

4. Stake in your neighborhood

Pride of ownership extends to the homes and area around your house as well. Whether or not you move to a neighborhood with a homeowner's association, buying a house will undoubtedly make you more invested in what's going on around you. And that can mean increased property values if neighbors band together for common improvements.

5. Increased interest in HGTV. And DIY channel. And weekends at Home Depot.

Don't be surprised if you start quoting Drew and Jonathan Scott or using terms like "mitered corners" and "refaced cabinets." Which is good news, because the changes you make to your home won't just mean greater enjoyment while you live there, but also potentially greater profit when you go to sell.

"Home ownership means you have free rein in the aesthetics of the home. When renting, you do not have the advantage of changing your environment to please you," said Real Estate ABC. "You may be able to paint a room, but need to repaint back to the original color scheme when you move. Owning your own home means you can do whatever you please to make your environment both personalized and, in the process, add value to the home."

6. Your honey do list may increase

But so will your satisfaction.

7. Tax breaks

"The second largest financial benefit of owning a home is tax savings," said Investopedia. "The biggest of these is the ability to deduct the annual interest paid on a mortgage from income. Private mortgage insurance may also be a write off, on addition to fees paid at closing. If you have paid points, either discount or origination, you can deduct these as well."

8. Expert knowledge of interest rates, neighborhood home prices, and area sales trends

When you're in the process of buying and after you close escrow, you're more likely to be tuned into what's going on in the market and in your neighborhood. This can help you to make smart decisions about updates, upgrades, and refinancing, and can also make you a trusted resource among your friends who want to buy.

9. More financial responsibility in other parts of your life

With a home to take care of, you may be more clued in to other long-term investments and less wiling to spend frivolously.

Original article from www.realtytimes.com | written by: Jaymi Naciri

Pre-qualification and Pre-approval: Do You Really Need Both?

What kind of mortgage you can afford and what kind you can get are important things to know when you begin the home-buying process. You might have a ballpark price range for your next home, but you run the risk of setting your sights too high—or too low—without some additional legwork. Narrow down your range by getting pre-qualification and then pre-approval.

The Difference

Pre-qualification (sometimes abbreviated as ‘prequal’) is a basic overview of a borrower’s ability to get a loan. You provide all the information, without any kind of paperwork to back it up.

Pre-approval is more in-depth. The lender will look at your bank statements, credit score and other information to demonstrate your financial capability. Neither is a guarantee you’ll get the loan, but a pre-approval is more reliable and more favorably viewed by REALTORS® and potential sellers when you start home shopping.

So why get pre-qualified?

• It’s quick and can be done online or over the phone
• You’ll know if you can afford a mortgage
• It can give you a basic idea of what kind of mortgage you can get

A Good Idea, Not the Final Step

While pre-qualification is relatively easy, don’t rely entirely on that information. Mistakes can be made and discrepancies can and will be found during the pre-approval or the final approval process.

Being pre-approved is not a sure-fire way of obtaining a loan, either. For example, if you are pre-approved one month, but then you take out a loan for a new car next month, you can damage your ability to get a mortgage. You do not want to change careers, spend too much money or take out loans during the home-buying process. If you do, you can hurt your loan eligibility.

While being pre-qualified and pre-approved won’t guarantee you a loan, it’s recommended you do both. At the very least, get pre-approved. Many REALTORS® and sellers won’t consider you as a strong home-buying candidate without a pre-approval letter.

So when you’re looking for a new home to buy, it’s in your best interest to do the following:

• Get pre-qualified
• Get pre-approved
• Shop for a home based on your pre-approval amount
• Apply for the loan

If you follow these steps in order, it can save you a lot of time and aggravation during the mortgage loan and home buying process.

Original article from www.realtor.com | written by: Craig Donofrio

Must Know Financing Options For An REO Property

One day you find a house selling below market value and comes free of liens and back taxes. It needs a new roof, but you decide this real estate-owned property, or REO, is a decent investment.

But before you start buying shingles, know that financing REO properties can be different than financing a traditional home.

What’s an REO? 

An REO is a house that has been foreclosed on and was unable to sell at auction. When the lender reclaims the home and wipes out any money due on the mortgage, it offers the property for sale as an REO. The property is usually sold as-is, even if it needs repairs to be live-in ready.

Some people choose to buy an REO as a primary residence, while others might use an REO as an investment vehicle. They repair and update the property, then resell it at a higher price—or rent it out.

Interest-Only Loans

Someone who does not intend to live in an REO—but buys it as an investment—may want to use an interest-only loan. With this option, you only are only required to pay the loan interest each month, usually for a period of five to 10 years before you must begin paying off the principal. There are some pros and cons to using an interest-only loan with an REO.

Pros:

• Less initial monthly payments, allowing you to invest saved money into the property
• Flexibility to pay the interest on bad months and the principal plus the interest on good months, if needed depending on tenants

Cons:

• Without careful planning, you could be stuck with high payments and no savings
• Your principal won’t go down if you only pay the required installments over the interest-paying period

If you decide to resell the home, then the profit can be used to pay off the loan’s principal, of course.

Possible Difficulties

Those who choose to buy an REO may have a hard time finding financing, since lenders may be reluctant to provide mortgages for homes in very poor conditions—like those without electricity or a needing a kitchen. Keep in mind if your REO requires extensive repairs, the bank will likely require a larger down payment.

Your credit history and your intent can also affect mortgage rates. Some lenders may see REO investors—those who don’t live on the property—as a higher loan risk and adjust their rates accordingly.

Some lenders offer mortgages that include money for repairs. Two examples are Fannie Mae’s HomePath loan and an FHA 203(k) loan. Both are intended to help buyers with fixer-uppers.

Original Article From www.realtor.com | Written by: Craig Donofrio

Getting The Most Value Out Of Your Outdoor Spaces

If you’re thinking of sprucing up your yard, install what you love; but also pick upgrades that will increase your home’s value and, someday, attract buyers.

The new “2014 Residential Landscape Architecture Trends Survey” by the American Society of Landscape Architects clues you in on what outdoor features are trending up: 

1.  Outdoor lighting (98.3% of architects rated this as very popular): With today’s solar and LED lights, it’s a low-cost upgrade, too. 

2.  Terraces, patios, and decks (97.7%): Adding any of these features is like adding another room to your home for much of the year.

3.  Low-maintenance landscaping (95.4%): Landscaping done right can add 28% to the value of your home and cut its time on the market by 10%-15%.

4.  Fire pits and fireplaces (95.4%): Building your own fire pit is an easy, low-cost DIY project.

5.  Built-in seating (89.6%): Adding built-ins to your deck or patio increases the usability of your outdoor spaces, which is like adding square footage to your home.

Other popular items include

:

• Fencing (88.5%)
• 
  

• Native plants (84.5%)
• 
  

• Drip-water efficient irrigation (84.5%)
• 
  

• Pergolas (82.8%)
• 
  

• Water features (81.6%)
• 
  

Here are some less popular landscape items. So if you’re thinking of putting them in, make sure they’re something you’ll really enjoy:

• Geothermal-heated pools (27.2%)
• 
  

• Outdoor cooling systems (37.2%)
• 
  

• Movie/TV theaters (42.3%)
• 
  

• Shower/baths (46.8%)
• 
  

• Gazebos (48.5%)
• 
  

• Turf lawns (54%)

Read more: http://www.houselogic.com/blog/outdoors/outdoor-spaces/#ixzz36zDqJWME 

Original article taken from HouseLogic.com | written as a blog piece by: Lisa Kaplan Gordon | photo credit: houselogic.com

There's A Lot To Consider When Choosing A Home Inspector

Many times, in the course of reviewing transaction files, I will read that an agent has recommended to the buyer that he or she should have the home inspected by a licensed home inspector. While one has to appreciate the earnestness of such advice, it is nonetheless at least a trifle amusing. This is because there is no licensing of home inspectors here in California. California is one of 21 states that do not regulate home inspection services via some sort of licensing mechanism.

Of all people, real estate agents know that the mere possession of a license is no particular guarantee of service quality. Nonetheless, when there is no licensing of what, to many, would seem a fairly technical business, questions do arise as to how one goes about selecting a practitioner. One approach is to look for some sort of professional validation such ascertification.

Indeed, a number of professional liability (Errors and Omissions) insurance companies provide incentives to their real estate customers to use certified home inspectors (or, to do the equivalent, obtain a "certified home inspection"). But then the question arises, "Certified by whom?" In some cases the insurance company may name which certifying organizations are acceptable; but, in others, the choice is left to the agent or broker. The insurance company just wants to know the inspector is certified.

Just as possession of a license to do something is not guarantee of quality, neither is the fact that someone has been certified. There are dozens of organizations that provide certification in the home inspection field, just as there are dozens of organizations that provide certifications in various aspects of the real estate business. (One can only imagine how many real estate agents became "certified short sale specialists" during the past few years.)

Some certifying agencies are undoubtedly quite rigorous and good; others, not so much. (As far as home inspectors go, I am neither qualified nor brave enough to single out here which are the really good ones.)

So what is a real estate agent to do when it comes to choosing or referring a home inspector? (I include choosingbecause that is often what the client wants and requests.) Obviously, in a state where licensing is required, then a license is a must. Secondly, despite what has been said, an inspector should be sought out who has membership and training through one of the professional societies. (It really doesn't take a whole lot of effort to get an idea of which organizations seem substantial and which appear to be on the fly-by-night side.)

One of the most important things that an agent can do -- that most consumers are just not in a position to do -- is toask around amongst one's peers. And I don't mean that from the perspective that you want to avoid inspectors who have the reputation of being "deal killers." Sometimes that reputation just means that they are thorough, which, as a fiduciary, is just what you want. (Although, on the other hand, it is perfectly legitimate not to want someone who is a bad communicator or who leans toward negativity.)

There are many specific questions to be asked: "What are their reports like?" "Do they welcome buyers being present at the inspection?" "What is their level of experience?" "Do they carry professional liability (Errors and Omissions) insurance?"

A home inspection is one of the most important parts of a real estate transaction. Not only should agents recommend that buyers obtain one, they should make every effort to see to it that the inspector is really good at what he or she does. After all, you'd rather have the inspector tell you about a defect or problem, than to hear about it, after closing, from the buyer's lawyer.

Original Article written by Bob Hunt | Taken from RealtyTimes

Energy Efficiency Is Driving Green Housing

Energy efficiency is the most important development and driver in making housing green, according to a recent industry survey by McGraw Hill Construction (MHC).

The report, “Green Multifamily & Single Family Homes: Growth in a Recovering Market,” surveys builder and remodeler members of the National Association of Home Builders (NAHB) and reveals the evolution of green building for single family homes from boom to bust to recovery through comparisons with previous studies from 2006 to 2011.

The survey found that 62 percent of single-family builders and 54 percent of multifamily developers are doing more than 15 percent of their projects as “green.” For single-family, 19 percent of builders are doing more than 90 percent projects as green.

The survey indicates that increasing consumer interest is a reason for growth in this area. MHC defines a green homes as “one that is either built to a recognized green building standard or an energy- and water-efficient home that also addresses indoor air quality and/or resource efficiency.”

The main appeal to green building is energy efficiency, according to the survey. Seventy-five percent of single-family builders and 84 percent of multifamily builders said that improved energy efficiency was the biggest factor making their projects more green than two years ago.

Harvey Bernstein, McGraw Hill Construction’s vice president of industry insights and alliances explains, “Greater consumer interest in green homes has contributed to the ongoing growth, leading us to anticipate that by 2016, the green single family housing market alone will represent approximately 26 – 33 percent of the market, translating to an $80 billion to $101 billion opportunity based on current forecasts. The findings also suggest that lenders and appraisers may be starting to recognize the value of green homes, making it a factor that could help encourage the market to grow if there is more widespread awareness across the US.”

Other factors mentioned were improved indoor environmental quality, water conserving products/practices, and material conservation and recycling.

While builders report a higher interest in green, the survey showed that only 11 percent of single-family builders and remodelers are constructing homes that are greener in 2013 than in 2011.

Original article written by Diana Dietz | Taken from JustListed.com