Housing Valuation Factors

In the process of rewriting a brochure focused on incorporating green attributes into the house buying process, I decided to mention solar path. All houses have a passive solar performance profile. What is most commonly seen on the Internet and in books is how to design and build a passive solar house. Architects and contractors who specialize in that area are eager to promote the virtues. However, the vast majority of people do not have a house designed and built on a site of their choosing. They buy new or they buy resale. Whatever they buy has a solar profile, but few buyers consider it as significant factor in their decision.

Here's a good video explaining the path of the sun and why it's important. http://youtu.be/OR8EQ0DWpPw

So where does valuation come into the picture? Houses with inherently poor solar paths, because of curving streets or hillside locations or whatever, are not now valued proportionately. There should be a carbon load/energy efficiency factor folded into their value. The Buyer should benefit from a valuation compensation to offset the higher energy costs and the impact on the planet associated with such a house. That doesn't happen in today's marketing system. Conversely, a house with an excellent solar path and good design, perhaps achieved by pure chance, should enjoy an increase in value because of lower energy costs, more comfortable interior environment and smaller carbon impact on the planet. That doesn't happen either. There may be some primal, subconscious preference for superior houses among some of the Buyers, but the granite counters and travertine floors are sure attractive, regardless of where the sun rises and sets.

Solar path analysis is nothing new, but with climate change and growing awareness of the uncertainty of the planet's future, it should loom as an important factor in housing decisions and hence valuation. Photo voltaic positioning is critically dependent on solar path. Prices are coming down, but will the house accommodate placement?

The real estate trade associations remain pleased with the present marketing system and process of buying and selling homes. They created it and lobby hard to maintain it. It's worked for decades and lots of firms and agents have made billions of dollars in commissions. Why mess with something that works so well? Sell the houses, all the houses with the smoothest, simplest, most risk free transactions possible. Adding additional complexity and further analysis increases risk, places additional knowledge requirements on the industry and tends to confuse the public and agents.

From an organizational perspective, it's an easy decision to keep wandering down the exiting path that detours gracefully around energy efficiency, climate change and the well being of future generations who may occupy a planet much different than the one we now know.