CHARLOTTESVILLE, Va., July 20. 2022 (GLOBE NEWSWIRE) — Pearl Certification has expanded its assessment study conducted earlier this year in Charlottesville, Virginia to include Boston, MA; Grand Rapids, Michigan; and Phoenix, AZ markets. The new research found that Pearl certification added an average of 4.7% to the value of a high-performing home.
Pearl Certification provides third-party verification of homes’ high-performing characteristics: the aspects of the home that make their energy efficiency, health, comfort and resilience exceed that of a typical home.
The latest valuation study, conducted and reviewed by independent appraisers, found that homes marketed with Pearl Certification sell for an average 5.5% sales premium in Grand Rapids, a 5% sales premium in Boston, a 3.24% Selling Premium in Phoenix and a 5.15% Selling Premium in Charlottesville. Independent researchers compared Pearl-certified homes in the four markets to similar uncertified homes using paired-data analysis, an industry-standard rating methodology.
“Homebuyers want high-performing homes — homes that cost less to operate, have healthy indoor air, are comfortable, and are built to withstand the stresses of the weather,” said Pearl President and Co-Founder Robin LeBaron. . “Unfortunately, many of the features that make a home perform well aren’t obvious to potential buyers because they don’t know how to rate the heating and cooling system or the insulation, and they can’t see the weather tightness. This is why it is so important for Pearl Certification to verify these high performing features and highlight their benefits to potential buyers.”
Train owners and real estate professionals
If an ad did not mention the Pearl certification of the house, it was excluded from the study because the certification of the house must be visible to buyers in order for it to influence the final sale price of the house. Failure to promote Pearl certification in the listing indicates a lack of knowledge among real estate agents about the added value of home certification.
“Pearl Certification is a valuable real estate tool, but only if used correctly,” said Pearl co-founder and CEO Cynthia Adams. “Realtors should identify the home’s Pearl certification in the listing in order to improve the selling price. Ideally, realtors should explain in the listing what benefits a potential buyer can derive from a well-performing home and how These features surpass those of a typical home.”
The house’s Pearl certification can be highlighted more effectively by including an image of the certificate in the first three images of the listing. This placement ensures that potential buyers can see the Pearl certification before clicking to read the listing in more detail. Pearl Certification strives to educate real estate professionals on these best practices and, therefore, help drive demand for well-performing homes.
The white paper also highlights the importance of mortgage lenders hiring real estate appraisers with expertise in appraising high-performance homes as imperative for the proper appraisal of Pearl Certified and other high-performance homes. Without proper knowledge of how to assign value to high-performance homes, appraisers may mistakenly fail to assign the estimated price increase that a home with these high-performance features deserves. The Appraisal Institute provides a register of qualified appraisers classified as specializing in “Sustainable Building Appraisal: Residential” who can provide this key service.
Pearl plans to continue researching Pearl-certified homes in other markets to demonstrate how home certification can positively impact the residential market nationwide.
“Home certification is critical to educating homeowners about the benefits of high-performance homes, as well as providing the industry professionals who serve them with the knowledge and tools they need to support this growing market,” said said LeBaron.
About Pearl Certification
Pearl Certification provides national, third-party certification of high-performance homes with the goal of bringing visibility to the valuable features that make them healthy, safe, comfortable, and energy and water efficient. Through its partnership with the National Association of REALTORS® Green REsource Council, Pearl Certification enables Green Designees, real estate professionals specializing in sustainable real estate, to certify homes – highlighting their energy-efficient features, differentiating their listings and improving sale prices. Pearl has certified over 88,000 homes in 41 states and Washington, DC pearlcertification.com
Marketing Manager, Real Estate
Image 1: Pearl certification increases the value of well-performing homes by an average of 4.7%
A new independent study found that Pearl Certification added an average of 4.7% to the value of a high-performing home in Charlottesville, Virginia; Boston, MA; Grand Rapids, Michigan; and Phoenix, AZ.
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Pearl certification increases the value of well-performing homes by an average of 4.7%