Real Estate Investing

So I received a press release yesterday about the weeHouse. Though not a particular fan of press releases (chalk it up to my newspaper background), this I had to share. Alchemy Architects is offering the weeHouse and its appearance is pretty amazing. I’d move into one tomorrow, but my husband is a different story.

Anyway, the web site states that building costs per square foot is about 20 percent less than a traditional custom home. Of course, pricing depends on things like building size and how much customization the buyer requests on the existing prefab model, but the web site is saying $125 to $200 per square foot.

Though hesitant to associate the esteemed name of architecture great Frank Lloyd Wright to these “good, cheap and fast” weeHouses, that’s really what these designs resemble. They are like building blocks laid next to each other or stocked atop each other, with cool features like floor-to-ceiling windows. These homes have a very retro, art deco feel that make you just want to slap some Eames chairs on the front porch and call it done.

I like weeHouses for three reasons:

1) They look cool, and what’s not to love about that boxy Frank Lloyd Wright style?

2) They are eco-friendly. Of course, the houses can be customized to any buyer’s green wishes, but the company tries to use low-emitting paint and other green-certified materials at least. Of course, the very nature of prefab housing is eco-friendly because the product is built in one location instead of trucking laborers and materials all over the place. As for Alchemy Architects, they try to operate a paperless company as much as possible, also good for the environment. All relevant info is posted on their web site.

3) These houses are smaller and more streamlined, yet still appear functional. This from Alchemy Architects’ web site:

We hope to offset the suburban trend towards overbuilding by instilling value in modern yet efficient living.

Former Federal Reserve Chairman Alan Greenspan just said in an interview Sunday with George Stephanopoulos that the housing market would take a while to become buoyant again, but that it would happen when builders stopped overbuilding. For this reason and because of growing concern over the earth’s condition, prefab is the massive wave of the future. And weeHouse is one example of just how exciting that can be. As more people learn the new truth about prefab housing and break out of their long-held preconceived notions, prefab is bound to catch on tremendously.

You may have heard a lot about LEED certification without understanding what it really means. LEED, or Leadership in Energy and Environmental Development, is essentially a rating system set up by the U.S. Green Building Council to gauge the “green”-ness of buildings. The LEED rating system has tiered levels, based on points accumulated for different building features. It offers basic certification, then the gradually higher silver, gold and platinum levels. Consumer Reports offers a more in-depth explanation on its web site:

“These levels correspond to the number of points earned in eight categories: Innovation and design, location and linkages to the larger community, sustainable sites, water conservation, energy efficiency, materials and resources, indoor air quality, and consumer education.”

LEED certification is highly sought after by commercial, government and industrial buildings. Basic LEED techniques, like low-emitting paint and Low E (energy-efficient) windows, are actually being implemented on a regular basis by many new homebuilders nowadays. This trend is part of a growing awareness that a few simple steps, sometimes at no extra construction cost, can go a long way toward helping the environment.

Eco-friendly building design and construction is expected to make up at least 20 percent of all new construction by 2009. There has been extensive coverage of how much money homeowners can save on monthly utilities costs if they build an eco-friendly home. But how much is the one-time capital cost? The answer may surprise you.

According to a 2003 study of 33 LEED-certified office and school buildings in California, the average premium cost per project was less than two percent per square foot. The level of LEED certification greatly affects the premium construction cost per square foot, because higher levels involve more complex features like solar energy panels.

The California study, summarized on Buildings.com, breaks down the average premium cost per LEED certification level. The eight buildings at the lowest LEED-certification level had an average cost premium of less than 1 percent. The 18 silver buildings averaged a 2.1-percent cost premium, while the six gold buildings had an average premium of 1.8 percent. The single platinum building was at 6.5 percent.

“More and more buildings can be built at the LEED-certified level for little or no cost premium,” says Greg Kats, author of the California study. “You can easily get at least half-way to certified at a zero-cost premium.”

Kats warns homebuilders to beware of “glued-on green.” That is the decision to tack on eco-friendly options like low-emitting paint or recycled carpet in the middle of the project. Eco-friendly building works best when it is planned out well from the beginning, Kats says.

Homebuilders should also beware of “greenwash.” These are products put out by companies who don’t really practice green principles on a daily basis, but merely want to make a buck off a product whose eco-friendliness is questionable at best. These types of companies market green products to ride the current trend, but don’t necessarily have the earth as a top priority.

Ultimately, with a little research and planning, basic eco-friendly features like Low E windows, recycled carpet and extra insulation can be integrated into your new home with nominal, if any, extra cost. Why not, considering your helping the earth and saving money on a monthly basis in the long run.