Guest blog entry by Gary Ashton, REALTOR®, The Ashton Real Estate Group of RE/MAX Advantage
Green is the color of the year, and it promises to loom even larger for the foreseeable future. As a real estate agent, if you’re not up on green technologies, and the advantages of solar panels, water-saving plumbing fixtures, tankless water heaters, xeriscaping, grey water systems, backyard composting stations and integrated home recycle centers, it’s time to become educated.
The public is demanding it more and more. The real estate market is changing. It’s no longer enough, in the eyes of many buyers, for a home to be attractive. A 2016 article in The Guardian noted that research confirms that approximately 90 percent of home buyers (in Australia) would appreciate more information from service providers about the energy efficiency of homes under consideration and that such a home would be more attractive to rent or to buy. About half of those surveyed said they would be willing to pay more for energy-efficient housing. It was also noted that Australia lags behind the UK and the United States in sustainability efforts and green technology.
What Constitutes Green?
There is mounting evidence, in all three countries that green features serve to increase property values, but there is less agreement on just what features are included and how much of a value boost is provided.
One area of consensus is that “green” extends beyond the bounds of energy efficiency. While contemporary green building standards stem from initiatives that were begun decades ago, a shift in emphasis has taken place that will lead into the future. The scope of concern has been broadened, both for commercial and residential development, to include the “health of buildings” as well as their operational efficiency and cost.
Many resources exist for real estate agents who are interested in learning more about green standards, verifications and certification programs. The Home Energy Information Guide represents a comprehensive effort, making a wealth of information available and outlining ways to discuss and disseminate that information for the benefit of buyers and sellers alike.
As the report notes, seven of 10 households maintain that energy is of prime importance, but a mere 35 percent say they are satisfied “with their current home’s performance.” That’s a wide gap and one that should be addressed.
Robert Mellon, COO of the Green Building Council of Australia, noted that “comfort and benefit” will become the benchmark for green technology, whether it pertains to solar heating or LED lighting. He notes that what is considered green today was only “aspirational” a decade ago, adding that, “We’d like to think in five or 10 years’ time the thing that we call green will be what people are demanding as standard.”
Telling the Public the Benefits
In the U.S., the National Green Building Standard (NGBD) offers independent certification that goes well beyond energy efficiency, mandating that homes achieve high marks in five other key areas. Performance is evaluated in terms of:
- Site Design
- Resource Management
- Water Efficiency
- Indoor Environmental Quality
- Building Operation and Maintenance
- Energy Efficiency
Energy Labels and Green Certifications
There are numerous other standards, including LEED, ENERGY STAR, independent certifications and local utility guarantees. Because Americans spend up to 90 percent of their time indoors, there is an increased awareness that both physical and mental health can be improved if homes, offices, schools and factories are designed to promote wellness.
In much the same way, real estate agents can have a positive effect on home environmental quality by learning about green certifications and verified energy information. Many MLS listings include those disclosures already. Perhaps soon, all will. However, according to Mahesh Ramanujam, COO of the U.S. Green Building Council, “If exercise makes us healthy as individuals, then green building is the exercise of our time for the legacy we leave for future generations.”
He insists that we can all improve the quality of our indoor space, and we can do it “at little or no cost.”
Why then would we hesitate?
