Lipstick-on-a-pig is killing real estate, families and our economy. Why?
Most investors buy homes to flip or rent. They buy cheap and fix cheap; Lipstick-On-A-Pig only, and they never spend money on energy improvements, which are more costly. The negative consequences are that everyone and the economy loses;
- Energy improvements are ignored – Renters and buyers are stuck with high energy costs.
- Contractors loose income – No energy improvements are made
- The tax base is not increased – No substantial improvements are made
- Local suppliers loose income – The contractors do not order materials
- Realtors earn less – Lower priced inefficient homes mean smaller commissions
- Lenders suffer – Lower selling prices have to be accepted
- The neighborhood is blighted – Renters have no pride of ownership
- Neighbors struggle to sell – Neighborhood values are lowered.
- Comparable values are kept low – Other neighborhood sales can’t be financed.
- The demand on energy remains high – Foreign oil imports have to be maintained.
- Coal burning electricity demand is maintained – Pollution is increased.
- Homeowners can’t save on energy costs – Homes end up in foreclosure again
And the cycle is repeated again and again, and no one ever wins!
Homes that are properly improved for energy efficiency after foreclosure means that everyone wins. Here’s why;
- Energy improvements are included – Buyers enjoy lower energy costs.
- Contractors earn income – Energy improvements are made
- The tax base is increased – Substantial home improvements are made
- Local suppliers earn income – The contractors order energy improvement materials
- Realtors earn more – Higher priced, energy efficient homes mean bigger commissions
- Lenders benefit – Higher prices are accepted
- The neighborhood is uplifted – Homeowners have pride of ownership
- Neighbors can sell – Neighborhood values are increased.
- Comparable values are raised – Other neighborhood sales can be financed.
- The demand on energy is reduced – Foreign oil imports reduction is supported.
- Coal burning electricity demand is lowered – Pollution is decreased.
- Buyers can save on energy costs – Homes don’t end up in foreclosure again
The cycle is broken, everyone wins and banks can sell off more inventory.
Smart banks don’t sell their inventory to Lipstick-On-A-Pig Investors. Smart banks sell to investors or buyers who commit to making real energy efficient improvements.