The market for eco-friendly properties is growing throughout the country. Americans spent $116 billion on eco-friendly homes in 2020 and this figure is projected to grow every year.
You might be surprised to hear that Kentucky is home to a robust green home market. There is no denying the fact that Kentucky is becoming more concerned with sustainability than ever before. The state actually became the 18th in the country to pass an advanced recycling law.
However, many eco-friendly homebuyers are not sure what to look for. What is the process for buying a green home in Kentucky? More importantly, how much do sustainable homes cost?
Keep reading to learn more.
What You Need to Know When Buying a Green Home in Kentucky
Buying a new home can come with many surprises, good and bad. You might find even more surprises when purchasing an eco-friendly home, because there are more factors to take into consideration. You might look at a supposedly eco-friendly home that is not at all energy efficient, so you don’t want to invest in it.
The surprises that you want to avoid are financial surprises. These are hardly ever pleasant. A home purchase itself can cost you an arm and a leg, so the prospect of having to pay for a realtor is often daunting for anyone that is about to purchase a new property. You might have to pay even more if you buy an eco-friendly home, even though it will usually save money in the long-term due to lower energy costs.
The only weapon you can use against this anxiety is information — find out what is the norm when paying realtors in Louisville and Kentucky and you will learn how to avoid overpaying without losing quality. You also need to know what questions to ask when buying a green home, since they are a niche market.
How Much Will You Need to Spend on an Eco-Friendly Home in Kentucky?
The cost of buying an eco-friendly home is going to vary depending on where you live. Nationally, the average cost is around $274,000. However, it can range from $193,700 to $369,800, depending on the market and type of home.
In Kentucky, you should expect to pay less for an eco-friendly home. Houses in general cost less in that state, so green homes should as well. However, you will need to speak to a qualified Realtor to learn more.
Get a Realtor When Buying a Sustainable Home
Why do you need a realtor? People don’t usually pay for help when buying cars, boats and jewelry. However, when making a serious investment like a home, it is important to be sure that the purchase is coordinated in a way that is legal and fair.
The necessity of hiring realtors comes from the fact that it would be nearly impossible to find or sell a home without them. Realtors contact both homeowners and possible buyers, learn everything about the strong and weak sights of the property, organize showings and deal with marketing. It makes sense that their work is well-played if we think about it.
But how much do they make? According to the most recent survey, an average realtor in Kentucky takes a commission of 5.80%, while the national average in the USA is 5.49%. If we take into consideration that the price of an average house in the area is about $190,000, it is easy to calculate an average commission is about $11,100.
You will usually have to pay more for green homes (unless you purchase a tiny house), because they tend to be more expensive. It sounds like a significant amount of money, but there are two factors we must acknowledge:
- First, realtors do not get to keep all of the money you pay. You normally pay commission to the company where your agent works, and the company consequently pays them a salary. That company then divides the commission into equal monthly payments. A part is often paid as a bonus, but the rest goes to other business expenses such as paying for the office and all facilities and marketing. Otherwise, realtors would get lots of money one month and none at all another month, which does not sound convenient at all.
- Second, the price may depend on the level of experience your agent has, the area, and, of course, the cost of the house you are buying.
The commission already includes a lot of services you might not be aware of, such as photography, advertising, showings, and so on. Realtors usually organize a marketing strategy, hire a photographer, print out important documents, buy champagne and snacks for visitors and offer other important services. So, you are paying for much more than actually selling a house.
What kind of real estate agents are there?
1. The seller’s agents
These realtors are also often called listing agents. Their primary responsibility is to represent the person who is selling a home. They are the ones handling advertising and organizing showings. The seller’s agent is who you need to hire if you are a homeowner looking for a buyer.
Of course, this kind of professional must have great communication skills and know-how to speak about your property in a way that is appealing to each potential buyer. Also, you must trust their expertise, as the marketing strategy they build for you is very important.
2. The buyer’s agents
These realtors help you buy an eco-friendly home and represent your interests in homeowners’ faces. They should learn about your wants and financial capability and then search to find the best home for you.
As your future home depends on this person, you need to feel comfortable around them and be able to trust their expertise. A good realtor will communicate both the advantages and disadvantages of the house you are considering and can also negotiate the price.
How can you save money when working with realtors?
The cost of buying an eco-friendly home is usually higher than most other properties. Therefore, you want to save money by working with a realtor. How can they save money? Here are some benefits:
- Negotiation, negotiation, negotiation. This cannot be stressed enough – real estate professionals built the whole industry on negotiation between sellers and buyers, agents and clients. The subtle art of negotiation lies in the ability to find the balance between overpaying and asking someone for charity.
- The second way is to find a realtor with a price that is comfortable for you. As in all other businesses, there is a top market, a low market, and the golden middle in real estate. The most expensive agents may not be worth the money and unable to offer more than a known company name, whereas the cheapest options are most likely to turn out to be inexperienced or lack basic skills. Opt for the ones in the middle, and you will likely get quality service for reasonable prices.
- Do your research. Before hiring any professional, it is essential to find out what are the average prices for their services in the area. You might also want to go online and look for feedback from the people who have already worked with the agent you are considering. This can help avoid overpaying as well as hiring a bad specialist.
Is it a good time to buy a green home in Kentucky?
You have to do your due diligence when buying an eco-friendly home. There are a lot of variables to take into consideration and the costs are usually higher than buying regular properties.
There are always factors for and against buying. If the market is hot for sellers, you’ll likely pay more than in a low time. The prices are growing, so they may get even higher in a few years. Second, the area now offers a wide variety of Victorian, gothic, or modern architecture homes so that you will find a perfect nest regardless of your tastes and requirements. Kentucky is a great place to live, and now is a great time for this kind of investment, as predictions for 2022-23 are pretty optimistic.
In conclusion, the three keys to finding a great new home for a reasonable price are communication, negotiation, and information. No matter if you are a homeowner, a tenant, or a potential buyer, an agent can either help you or completely ruin the experience, so remember that quality of service can be more important than the price you pay. Find a great realtor to work with within Kentucky and become one of the lucky residents.