VIENNA, Va., Nov. 9, 2017 /PRNewswire/ -- Getting a home certified by Pearl Certification can increase its value by thousands of dollars, a new study has found.
The study, performed by a team of appraisers, looked at a set of 27 Pearl-certified homes in Virginia and Maryland and compared them with 35 sales for similar homes that had not been certified.
"The study found that the average price premium for a Pearl-certified home was more than 5% when the certification had adequate market exposure," said author Sandra Adomatis, a nationally-recognized expert at valuing properties with solar installations and energy efficient features. "Our findings are consistent with the results of other studies from across the U.S., which have almost all shown a premium on the sale of homes with green and energy efficiency certifications."
In the Central Virginia market, where Pearl launched its certification program in 2016, the average price premium for Pearl-certified homes was 5%. Premiums in areas of Northern Virginia where Pearl Partner real estate agents had marketed the Pearl certification effectively ranged from 2.2% to 4.2%. Homes that had Pearl Certification, but were not marketed as Pearl-certified, showed lower, and in some case negative, premiums.
"The study shows that buyers want and will pay more for energy efficient, high-performing homes," said Pearl President and COO Robin LeBaron.
"Buyers will pay a premium when the home's full value is visible to them through a credible, third-party certification," LeBaron said. "But if the buyers don't know the home is third-party certified, they aren't going to pay more for it."
Pearl's certifications provide buyers with information about the home's high-performing features, such as insulation, high-efficiency heating and cooling equipment, ENERGY STAR® appliances, and smart devices. Pearl also provides an extensive set of marketing tools to help buyers understand why these features matter.
"Buyer education is central to Pearl's mission," said Pearl CEO Cynthia Adams. "We provide our Pearl Partner real estate agents with flyers highlighting the home features, placards that can be hung around the home, and social media posts."
"When agents use these education materials, their buyers really understand why a Pearl-certified home can be a great investment," Adams said.
SOURCE Pearl Certification