Homes Promoted as Pearl Certified Sell for Premium in Multiple Markets

CHARLOTTESVILLE, Va., July 20, 2022 (GLOBE NEWSWIRE) -- Pearl Certification expanded its appraisal study conducted earlier this year in Charlottesville, VA to include the Boston, MA; Grand Rapids, MI; and Phoenix, AZ markets. The new research found that Pearl Certification added 4.7% on average to the value of a high-performing home. 

Pearl Certification provides third-party verification of homes' high-performing features: the aspects of the home that make their energy efficiency, health, comfort, and resilience exceed that of a typical home.

The latest appraisal study, conducted and reviewed by independent appraisers, found that homes marketed with a Pearl Certification sell for a 5.5% mean sales premium in Grand Rapids, a 5% sales premium in Boston, a 3.24% sales premium in Phoenix, and a 5.15% sales premium in Charlottesville. Independent researchers compared Pearl Certified homes within the four markets to similar, non-certified homes using paired-data analysis, a standard appraisal industry methodology.

"Homebuyers want high-performing homes — homes that cost less to operate, have healthy indoor air, are comfortable and built to withstand weather-related stresses," said Pearl's President and Co-founder Robin LeBaron. "Unfortunately, many of the features that make a home high-performing aren't apparent to prospective buyers because they don't know how to evaluate the heating and cooling system or the insulation, and they can't see the air sealing. That's why it's so important for Pearl Certification to verify those high-performing features and highlight their benefits to prospective buyers."

Educating homeowners and real estate professionals

If a listing failed to mention the home's Pearl Certification, then it was excluded from the study because the home certification must be visible to buyers in order for it to influence the home's final sales price. Failure to promote the Pearl Certification in the listing indicates a lack of knowledge among real estate agents about the value that home certification adds.

"Pearl Certification is a valuable real estate tool, but only if it is used properly," said Pearl Co-founder and CEO Cynthia Adams. "Real estate agents need to identify the home's Pearl Certification in the listing in order for it to improve the sales price. Ideally, real estate agents should explain in the listing what benefits a potential buyer can enjoy from a high-performing home and how those features surpass those of a typical home."

The home's Pearl Certification can be highlighted most effectively by including an image of the certificate within the first three images of the listing. This placement ensures that potential buyers can see the Pearl Certification before clicking to read the listing in more detail. Pearl Certification endeavors to educate real estate professionals about these best practices, and consequently help drive demand for high-performing homes.

Expertise matters

The white paper also emphasizes the importance of mortgage lenders hiring real estate appraisers with expertise in assessing high-performing homes as imperative to the proper valuation of Pearl Certified and other high-performing homes. Without proper knowledge of how to assign value to high-performing homes, appraisers may mistakenly not attribute the increased estimated price a home with these high-performing features deserves. The Appraisal Institute provides a registry of qualified appraisers categorized as specializing in "Valuation of Sustainable Buildings: Residential" that can provide this key service.

Pearl plans to continue its research on Pearl Certified homes in additional markets to demonstrate how home certification can positively impact the residential market on a national scale.

"Home certification is key to driving awareness of the benefits of high-performing homes among homeowners, as well as providing the industry professionals that serve them with the knowledge and tools they need to support this growing market," said LeBaron.

About Pearl Certification

Pearl Certification provides national third-party certification of high-performing homes in effort to bring visibility to the valuable features that make them healthy, safe, comfortable, and energy- and water-efficient. Through its partnership with the National Association of REALTORS® Green REsource Council, Pearl Certification enables Green Designees, real estate professionals specializing in sustainable real estate, to certify homes — highlighting their energy-efficient features, differentiating their listings, and improving sales prices. Pearl has certified over 88,000 homes in 41 states and Washington, D.C.

Media Contact

Caprice Johnson
Marketing Manager, Real Estate
Pearl Certification


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Image 1: Pearl Certification Increases the Value of High-Performing Homes by 4.7% on Average

New independent research found that Pearl Certification added 4.7% on average to the value of a high-performing home in Charlottesville, VA; Boston, MA; Grand Rapids, MI; and Phoenix, AZ.

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Pearl Certification Increases the Value of High-Performing Homes by 4.7% on Average