People often make the biggest purchase of their lives based just on what they see. However when it comes to real estate there are many factors that you don’t readily see that are far more important than the granite counter tops, stainless steel appliances or marble floors.
Most everyone knows that the most important factor in real estate is location and even though people forgot that criteria during the last boom, we are seeing now that LOCATION is still king. The location of a property as it relates to place of employment, availability of services, schools,
public transportation,
walkability and other factors is most important.
As US society moves forward and energy costs continue rising, locations that offer the opportunity to have alternatives to the automobile are going to be more valuable - this already happening in many major cities around the world. According to the American Automobile Association the cost of owning and operating an average midsize sedan is about $10,000/year. If you were able to eliminate one car, you can save about $300,000 over the lifespan of a 30-year mortgage.
Another factor that most people don’t see but it is becoming more important is energy efficiency. Nowadays there are homes that are much more energy efficient than others and may cost half as much to operate. The next wave of condominiums is going to include energy efficient buildings that are
Energy Star Rated and
LEED Certified or other third party verification.
It is important to know if homes have energy efficient features like well insulated attics, walls, impact or insulated windows,
Energy Star appliances, high efficiency AC, water heaters, etc. The difference in operating costs can be significant - my home is over 50% more energy efficient than a conventional home and I save on an average of about $300/mo.
To put in perspective, assuming energy costs remained at today’s level, during the lifetime of my 30-year mortgage I will save about $108,000. If I use that money to pay down my mortgage, I can save another $92,000 in interest payments for a total of $200,000. Imagine savings on transportation and energy alone can save a homeowner about $500,000 over the lifespan of their mortgage.
There are many other components that you don’t see, but they add to your comfort and savings. For example the type of shower valves make a big difference in taking a shower so you’re neither scolded nor frozen. How often have you been taking a shower and someone turns a faucet in the kitchen or flushes a toilet in another bathroom and the water temperature changes drastically?
Pressure balanced valves prevent those radical changes in temperature by maintaining the proportions of cold and hot water stable even if the flow drops. However many developers opt for the cheaper conventional valves that cost $50-75 rather than install the more expensive pressure balance valves that cost about $300-350. When you compare the cost of the valves against the overall cost of the house it is minor expense to enjoy a pleasant shower and avoid being scolded.
The same applies to air conditioning – you may notice that the house is cool, but an AC with an SEER of 18 -20 is much better than SEER13-16. The same applies to exhaust fans in bathrooms…you may have a real cheap unit that makes a lot of noise, but does not remove the humidity resulting in fogged mirrors and wet wall that attract mold and mildew. Or have high efficiency and quiet exhaust fans that remove the humidity and is hardly heard.
These are just a few examples of house components that most buyers do not see, but make a big difference in the quality of life and operating cost of the house. There are many more and a knowledgeable real estate agent knows to ask those questions and help you make the best purchase, not based on what you see, but on what you really get. As an Architect and Realtor I can help sophisticated buyers look beyond what is obvious to assist them in finding what is the best fit for them. Call Carlos Ruiz at 305 510-0647 or
ruiz.c@ewm.com for more information.
