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Why Build ENERGY STAR Qualified New Homes?

Because building ENERGY STAR qualified new homes offers builders: Increased Profits Increased Customer Satisfaction Recognition for Environmental Leadership Increased Profits To understand how ENERGY STAR qualified new homes can increase your profits, you first must understand the true cost of owning a home. Unless a buyer pays cash for a home, there will be two major costs each month – the mortgage payment and the utility bills. Because of the energy efficiency features, ENERGY STAR qualified new home’s utility bills can be significantly lower than those of a typical home, which makes it cheaper to own and maintain. (See Figure 1.)

Figure 1. ENERGY STAR Qualified New Home 

Monthly Annual Utility Savings $45 $540 Additional Mortgage Costs² $20 $240 Net Savings $25$ 300 Savings will increase as utility costs go up. Mortgage costs for ~$3,000 of improvements remain fixed! This extra savings can… Make it easier for you to sell options

Once you’ve demonstrated to home buyers how an ENERGY STAR qualified new home can create a revenue stream that is nonexistent in standard housing, you can show them how those savings can be used to purchase options, while still keeping their monthly costs below that of a standard home. For example, the buyer of the ENERGY STAR qualified new home in Figure 1 can use that $300 annual savings to purchase $3,000 in options. This would raise the monthly mortgage payment on the ENERGY STAR qualified new home, but this is more than offset by the monthly utility bill savings. This means that the buyer of the ENERGY STAR qualified new home now owns a higher value home, yet is paying the same amount monthly as the buyer of a standard home.

These extra options not only help the bottom line, they also make your homes more attractive to potential buyers. To assist builders with utilizing the ENERGY STAR brand in marketing efforts we provide sales and marketing materials in our Tools & Resources section.

Increase your profit margin

Energy efficient homes offer buyers more value and as a builder, you should be able to make more money selling them. By selling the true costs of owning an ENERGY STAR qualified new home, you can increase the list price of the home to capture the extra value without hurting your ability to sell the home. You need only demonstrate to potential buyers how the ENERGY STAR qualified new home will cost them less to own than a standard home with a lower list price.

Allow you to sell more homes through ENERGY STAR financing

Buying an ENERGY STAR qualified new home gives homebuyers access to preferred financing that maximizes their purchasing power. ENERGY STAR and energy-efficient mortgages allow buyers to capitalize on the projected cash savings from lower utility bills by increasing their PITI, thus increasing their qualifying amount by the projected utility savings. Therefore, your buyers are able to purchase more options, and/or more home, at their present income level. Use our New Homes Partner Locator to find lenders in your area who offer ENERGY STAR Mortgages, or find out how you can get your lending partners involved.

Increased Customer Satisfaction 

Building ENERGY STAR qualified new homes allows you to improve the performance of the homes at little or no additional cost. You can offer home buyers superior comfort and indoor air quality, quieter interiors, the opportunity for higher resale value, and a more environmentally friendly home – all for a lower cost than a standard home. 

Many builders claim to build energy efficient home, but the ENERGY STAR label on your homes assures buyers they really are getting what they are paying. This is because ENERGY STAR qualified new homes are third-party verified by home energy professionals. And since the third party verification of ENERGY STAR qualified new homes occurs during construction, it eliminates many of the problems that can lead to costly callbacks and reduced customer confidence. 

And since many benefits of an ENERGY STAR qualified new home are not visible, such as increased comfort and quality, improved indoor air quality, etc, we’ve provided a simple guide to appreciating the differences (32KB) to help you convey thus benefits to your buyers. Use this resource, and many others provided by ENERGY STAR and its successful partners, to gain an advantage over your competition. 

Recognition for Environmental Leadership

Affiliating yourself with a nationally recognized brand will lend credibility to your energy-efficient and environmental claims. All active builder partners are listed on our Web listing New Homes Partner Locator in accordance with our web listing and Web linking policies.

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