Lenders Need to Be Cautious Regarding Green Properties

Lenders considering making mortgages on so-called "green" houses might want to think twice before committing to loans on properties with solar panels and other "eco-bling," a leading architect in the field said at the National Association of Real Estate Editors' annual journalism conference in Austin, Tex. A building scientist with a life-long commitment to green building, Peter Pfeiffer of Barley & Pfeiffer Architects said he takes "a very pragmatic approach" to the field. "Tankless water heaters were crap 25 years ago and they're still crap," he said. "They require much more maintenance than the typical home owner wants to do." Ditto for active solar panels, which may add $20,000 to the cost of the house but save the occupant less than $50 a month. Such a system would need to be replaced before the owner recoups his investment, Pfeiffer said. The architect said sustainable green building is more about building smarter than it is building products. "Green by design is better than green by gadget," he said, noting that window and porch overhangs and the way the house is oriented on the building site are far better techniques than installing recycled stoned glass countertops and or solar panels. "R-value means little if the house leaks or the roof is a dark color," Pfeiffer told the realty reporters.