New Home Investment

Category: Sales & Marketing

Issue/Problem: How to optimize your purchasing power when buying an energy efficient new home.

Analysis:                    
Buying a home requires consideration of both the desire for a safe, cozy and convenient atmosphere for your family and the need to ensure you have optimized your investment dollar. Decision examples might include:

• Is it the right size for our family vs. can we afford it comfortably?
• Is it a safe neighbourhood and close enough to schools vs. is it in an area that will increase or at least retain its value for when we are ready to move on?

Sales Principles:         

• Two important economic factors offer a win-win-win investment opportunity for you at this time. Interest rates are comparatively low and quite stable and energy prices are at an all time high and undoubtedly on the rise.
• There is now an ENERGY STAR label for qualified new homes, the same label you have come to trust as the symbol of top energy performance in appliances, furnaces, air conditioners etc. An ENERGY STAR qualified home has heating and cooling bills that are 25% -30% less than homes constructed to standard building code levels.
• On a typical 2000 sq.ft. home, the added value of ENERGY STAR is between $6,000 and $8,000. An ENERGY STAR qualified home of this size will have gas and electrical bills that are at least $700 per year lower than conventional new homes. (This is not a guess. We work with a professional, independent energy rating company that verifies these numbers.)
• That’s a $700 annual year after year return on an investment of $7,000. That’s an amazing after tax Return on Investment (ROI) of 10%.

• How does this investment in your home compare to leaving the $7,000 in a savings account at 1-2% or even a mutual fund at 3-5%?
• In fact, since current mortgage rates are less than 5%, you can borrow the money at 5% (put it on your mortgage) and immediately earn 10%.

Conclusion:    

• You WIN because your home is more affordable now and in the future as energy prices rise.

• You WIN because you have increased the value of your home at no additional monthly cost. Your ENERGY STAR home will have more value in the resale market.

• You WIN because the same features that ensured lower heating and cooling bills also make your home quieter, cozier in the winter, cooler in the summer, healthier for you and your family with lower maintenance needs. This saves you valuable time and money. These benefits are well documented by the government agencies and utilities that endorse the ENERGY STAR program and they come to you at no additional cost.

• Investing in energy efficient options available in new houses offers a better and safer ROI (return on investment) than virtually any other financial investment available.