FAQ


What does green mean?

This is ongoing debate.  Green can be interpreted in many ways such as energy efficiency, made from recycled materials or other environmentally friendly characteristics. There are several organizations attempting to clarify and streamline the definition of green but so far there has been no universal consensus.

Om Realty Group's philosophy is to go green where it makes sense. This could be changing light bulbs to compact fluorescents, updating HVAC systems or choosing to buy a home that is certified as a green or energy efficient.

What types of certifications are out there in today's market?

There are several certifications that green developers can receive. The United States Green Building Council (USGBC) created LEED as a rating system for buildings. This system is making its way into the residential market but has been primarily used in commercial real estate.

The EPA has Energy Star rated homes. This is more than just Energy Star appliances. What they have created is a system of builder's guidelines to create a ‘tight envelope' in the home. This means preventing heating and cooling energy leaks. This is discussed more in Green Education 101.

Green Globes is a system from Canada that is getting a lot of press. It has some advantages over LEED, but in the same sense has parts that are still being clarified.

The city of Chicago has introduced its very own Green Home Certification. This program is a combination of other systems' attributes and provides a regionally relevant certification. Going green has a lot to do with size, orientation, building make up (brick or frame) and weather, as a result, it makes sense for cities to adopt systems that integrate these variables into their building codes.

Most importantly, consumers drive the market.  All of these systems are challenged with hundereds of variables, code restrictions and the slow pace of change in the industry.  We recommend consumer education so that people can choose which aspects are most important them. Eventually one system will stand out from the rest.

Om Realty Group and Om Development's philosophy is to draw on important aspects from each system. Om Development uses Energy Star as the baseline of their building practices. We believe that this creates the best environment for reducing the carbon footprint of the home. As an example, we built a green home on 4227 S. St. Lawrence.  The entire year's energy consumption is around $650.00 - which is thousands of dollars in energy savings. 

The home offers the owner other advantages such as 1) The homeowner saves on energy while reducing the country's overall energy consumption 2) Tax credits 3) Less strain on home appliances and more

Om Development also employs other programs to reduce water consumption, improve indoor air quality, use eco friendly finish materials, and reduce overall toxins that are normally found in the home.

Om Development and Om Realty Group have teamed up to help each buyer, seller, and investor clarify the differences between programs and distinguish which system is best for them.

How much more does green cost?

The truth is that a building will only sell for market value. So that means that the developer maybe able to get a small premium for the building, but only if the market perceives that as added value. The goal of many developers doing green is to simply be better than their competition so they can sell faster.

We feel this is since the supply of green homes is so low, and the demand is rising at such a significant level that this becomes simple economics. Green supply is low, and developers hope as the trend continues and grows that greater value will be given to green homes as the demand grows.

How does supply and demand affect real estate?

Supply and demand is the simple principle that if there is too much supply and not enough demand than prices will fall. This is the big worry of the bubble. We simply have too much inventory.

When demand is up and supply is low we get competition for property and prices go up, such as in a multi offer situation.

Green supply is low and demand is increasing to the point where developers can't produce it fast enough. What do you think this will do to the value of these cutting edge homes? That is the speculation that much of real estate investing is based on.