The Obstacle to Building and Selling Green in Houston will be a Series - this is the first of the series.
Typically speaking in the Real Estate Market right now in regards to Green I would say that the average line of thought, the average acceptance of a 'Green' or 'Greener' home not only in Houston but around the Nation is very high.
We have gone from a few years ago, the average consumer thinking that a 'Green' Home was Recycled and only beneficial to the Environment to Today - Understanding that not only is a 'Green' home better for the Environment, It is better for the Homeowner.
This is a Drastic change in thinking for Society when you think about it in real terms and how fast this thought has changed. Now, the acceptance of Greener Homes may be high, but do they sell?
Regardless of what publication we may read that 'Green' homes are not selling, then we hear that 'Green' homes sell faster and for more money. When we speak to consumers we hear 'Green' homes are not being built in my area and then 'What is a Green Home?'
This tells me, my personal opinion, that there is still a lot of confusion out there in the market. In all actuality it is probably too soon to know what statements are correct. In basic terms I personally believe that we have 3 different kinds of people:
- The extreme Green Buyer that will spend and do what ever it takes
- The what I call an Enviro Hater that won't buy anything termed 'Green' or 'EcoFriendly' just for the principle
- The Buyer that wants to do the right thing, not be wasteful and have a better quality of home and environment
The 3rd point being the largest of the population generally speaking. Then, there is the confusion. The confusion comes in to play because everyone has a different opinion of what 'Green' really means. Some think it means that the product costs more, some think of it as being Energy Efficient, others think made of recycled content ...
How effective really are the Checklists for Green Building if the purchaser has no idea what it means?
More than ever in the Real Estate Industry we are at a point where we have to sell Value whether it be for a service or a product. People want to know what makes you or your product different and worth it for me to buy it whether it is Green or not.
What this tells me is that where a couple years ago we thought we had 10-15 years before the term 'Green' disappeared in relation to 'Green Building' - we are probably on the verge of it happening right before our very eyes. Today, right now.
As a Real Estate Professional that specializes in helping people buy and sell Green Properties I see the need to use different terms to overcome this Confusion. Let's get rid of the Term 'Green'. Buh Bye, See ya Later.
Why? Because it is becoming Normal. It is expected now that Homes are more Energy Efficient now than what was built even last year. It is expected that Homes are moving in the right direction and using Healthier Building Products. And, what the heck is Green anyhow?
We need to, as Real Estate Industry Professionals, learn what it is that makes a product 'Green' and be able to explain it to people. In markets, such as Houston, where we are still trying to get over the hurdle towards Mass Green Building, do we need a new approach? A change in terminology and possibly even a change in the approach to what products we build with.
If it is a Green Home, Why? What makes it Green? Is it more Energy Efficient? What products separate it from the rest and does the Home Buyer even care?
All of these are obstacles to building a better and greener home in the Houston area. Over this series let's break it down and look at the real trends of where 'Green' building may be headed. Let's take a looksy at how to get the Green Building movement going in a faster pace towards a more Sustainable Houston.
The answer may very well be where they always have been. The answers may lie in our daily Housing Market and average Houstonian Statistics.
Part 2 of the Series - Who is the Average Homebuyer in Houston? Who lives in Houston anyhow?
Very informative post, although I don't agree with all the green stuff. Really if everyone cared enough we would go back to the stone age. Or at the very least give up A/C and electric all together. Put GREEN on something and the folks that buy it or buying out of guilt or just to feel good. Even your post pretty much says most don't have a clue. GREEN is another way to jack the price on people.
Sort a like cell phone cause cancer and other myths. How do we know that GREEN is not the very reason we are detroying the planet. Freon may be what is killing off all the germs in the air.
Hi Charles, Now, Now. Don't twist my words. Your comment is proof that there needs to be more education on green building.
I did not say that people don't have a clue. I said that people are confused. There is a difference.
Hi Steff...
I am still trying to learn all of this. You just keep posting them and I'll keep trying :)
TLW...ROAR!
Your post reminds me of years ago when organic food was first being promoted. I remember reading a newspaper article that said the definition of what constituted an "organic" product was nebulous and needed to be concrete...did it mean just no pesticides, grown from organic seed, grown in soil that had never been tainted, etc. etc.
So, it is with green homes I suppose. Seems like a lot of builders use it to mean "energy efficient". Looking forward to hearing more. :)
i think people will buy eco-friendly only if it cost no more upfront money. if you put two bulbs out and both cost exactly the same and are just as easy to use every time the eco-bulb wins that battle. the issue right now if you have green vs normal and normal is 50k less and equally as good. once we are to equal time and cost a great change will begin.
Very true. People have different definitions of being green.
Green homes are the rage here in rainy old Washington state... But then again Subarus, patchoulioil and Birkenstocks seem to sell like hotcakes, too. As far as truly green homes go, we've built out a number of off the grid SIP's solar homes... Although I don't think that Solar is the most cost effective way to go green, I do believe that there are a few people who are willing to fork over the big bucks to never have to pay an electric bill again. Plus, I guess it's cool to tell the other Hippies, er, I mean environmentalist (I kid, I kid!) that they are 100% self reliant:)
As for the Hippy/Environmentalist comment, I own a solar supplemented home, so I can say those kind of things. Wait,... what? I can't? Oh..... Oh, well.
Stephanie, the reality of green is people like the environment and protecting it and saving energy they just don't like or can't afford the added cost.
Sorry, wasn't trying to twist your words. Just wondering is 100 years from now we will all be seeing red because there isn't any green left.
Green is code for:
Saves time, saves energy and is cost efficient.
It is Best Practices. Once we realize that it is superior to the way we have been building (and why have we been building that way?) it will become the norm. Until that occurs, we need some code for the new standard.
Hey TLW, I can do that. :)
Hi Sonja, that's exactly what it is like. The term organic has been diluted as well. Builders need to consider how best to describe their product without making it confusing. As I heard at a conference last weekend "Confused people don't buy"
Hi Marcus, I somewhat agree but what constitutes equally the same and what is a particular homebuyer looking for? It's about being able to describe the differences... But people can still only afford so much like you say. It's interesting times for sure. :)
Hi Realty.com - So true!
Hi Levi, LOL. I'm a big fan of solar and have mixed feelings about it...but I would love to have 6 or 7 Kw on my rooftop! :) Awesome to hear about your house. I would love to hear more about it. Oh and hippy tree hugger comments don't bother me.
Hi Gary, I do think this is true for the most part.
Hi Charles - Thanks for sharing.
Hi @GreenShelter! I agree. Codes consistently move forward in making homes better. This is just the next phase of it.
We are having the same issues here in New Hampshire. However, we are probably less "green" aware than Houston. I can't wait to read part 2.
Energy Efficient is what people may pay for. Out in the hitherlands green means more taxes on the way with little solved in regards to energy needs of the country. We cannot all be California. Many here are glad to have roofs and floors. People worry about food, sickness, and the basics of life much more. Many of these people are actually green living in old homes, no a/c, no cars, several to a bedroom. Now that is saving!
Stephanie: cool post and good info... I equate "Green" to common sense... the word gets so over used, yet the idea is great. Being a little 'frugal' goes a long way, and I mean that sincerely. I've known people to waste just because that somehow defines them as above it all. I come from peasant stock, wonderful people that just simply didn't want to waste, and had nothing to prove...
thanks for the post... I'm happy you took this on...
Rene'
Stephanie- They just did a survey here in Florida for agents: what percentage of buyers have asked about green homes, etc. 80% of the agents said that they have NEVER even been asked to show green homes. That it is not even brought up. I have to admit- our buyers agent has never been asked about green homes and neither has any agent I have spoken with.
I think it is great that there is a choice. Mandates though, are another story. The more the green movement is pushed down people's throats the more they will rebel against it. The more we are taxed for it, the more the people will be hurt because the poor people can not afford going green. The more green homes are forced to be built the more the cost will be placed on the consumers. The more costs passed on the consumers, the less buying power the consumer has. The green movement and green homes are great for those who can afford those homes, but many people just likke Eric says, can not afford to be burdened with green mandates.
Hi Joan, I don't know about that. :) I think we are about like everyone else. Would love to hear what you are seeing in your area.
Hi Rene' - Thanks a bunch. I agree with the common sense statement. :)
Eric and Katerina- Before you judge what I'm saying here, stay tuned for the rest of the series. I may not be saying what you think I am.
And for the record, I decided to do EcoBroker because nearly every single one of my clients wanted green features. They did not term it as 'Green', I did not consider it 'Green' at the time.
If buyers comment that they want less carpet because they or their children have allergies or asthma, if they mention the fact that they are concerned about HVAC equipment being old and about to have to be replaced, high utility or water bills .. or if they are concerned about ongoing house maintenance that costs a lot of money or has not been done on the home - Then they are concerned about Green features.
Thus starting my series with 'Death to the term Green' But hang in there with me.
My problem with the term "green" has nothing to do with the environment, actually and everything to do with "entities" - be it people or companies, that just use the term for marketing purposes. You see the term EVERYWHERE and as you said it has become "normal."
IMHO, to truly be "green" you wouldn't be using up fresh resources, you'd be reusing what we already have.
I saw an episode of some show on HGTV one day where this "Environmentally conscious" couple wanted to sell their existing home - which they had recently renovated - in order to build a "green" home. They weren't leaving the area, they were going to build on a vacant lot not too far away, next door to their parents. WTH? How is that "green?"
Anyway - I love the environment, I love my planet - I do hate the "green" bandwagon because I think a lot of people just hop on for the sake of hopping on the bandwagon...
Stephanie - an excellent awareness raising post. I agree that there are many people who don't have a clue, a good number who don't care and perhaps never will unless mandated, and many who are environmentally aware and sensitive. It's an on-going process. After all we didn't get where we are with the issues we have overnight adn they won't be fixed quickly. Education is key, but for many there also has to be an incentive. But one has to wonder how much of is is really marketing.
Jeff
Hi Stephanie... excellent post and congratulations on the gold star! The term "Green" has been kidnapped by the marketing people everywhere (not just real estate related) and they have simultaneously diluted it's value and created uncertainty about what it actually means.
It is still a new concept around these parts. Not seeing alot of Green homes yet.
Let's get rid of the Term 'Green'
I agree.
Green has about as much meaning as 'organic' when it comes to buying food. Not yet as bad as 'all natural' but getting there.
Any house can be "green"; change the lightbulbs to CFCs and it has a "green feature" or finish the walls with a low VOC paint. Meaningless...
Programs such as LEED actually are able to communicate whether the design of the home is energy efficient and sustainable.
Got the EcoBroker designation last year and found it very informative. If for no other reason when energy cost spike up again, and they will, just energy efficiency will be at a premium. Plus, I would rather spend money on another rent house than pay extra utility cost. What gets me is when people have an "energy efficient" 5000SF home. We also need to think about how much materials we can waste on being impressive. FYI, that home was built in Oklahoma for a couple without children. Yeah I know it's America, but lots needs to be done to change the culture also. Now if I could just get some mortgage company here to do green mortgages I will be happy.
Good post Stephanie. We have a lot of green abuse ging on here. I have started a series of seminars with a Nahb builder and an energy auditor trying to educate people about what to look for in Lewes and Rehoboth Delaware It is such a buyer beware kind of market.
I am also going to write a new.sletter on identifying qualified professionals, how to do your due diligance and how to protect your self from fraud. Misrepresenting is happening on everything from cans of food to contractors. I will now get off my soapbox.
My work is in product sales and consulting for green building and I agree - let's get rid of green. I have been involved in this movement since the 70's and find it unfortunate that green is the term that stuck - I guess it has the most marketing appeal. Green building (before it was green) began with incorporating energy efficiency and resource conservation into our homes, and took on the aspects of a creating a healthy environment as it developed.
As someone else mentioned, it is all about common sense - education that whatever moves us toward better energy efficiency, resource conservation, and healthy environments is a move in the right direction and deepens our shade of green. My vote, if I had one, is for "sustainability" - a much better term to describe this movement. But that probably wouldn't sell as well - for sure it wouldn't leave room for the marketing hype.
Ron
Stephanie- OK, my dear friend, I will hang in there, just because it is you:)
Stephanie, this is well written post and I am just glad that folks like you and many others, including myself are still committed to building sustainable , and energy efficient projects. Why someone think it will drive us back to the stone age is just neanderthal thinking...Sorry, I could not help that!
The average Houstonian has too many other things on their plate, unfortunatley.
Katerina, I posted part 2 last night.
Hi Stephanie -- Great post and I wonder how much green will end up taking a back seat due to economic constraints of today.