Green Real Estate. NSCC - RES 130 Online. Cate O dahl, Instructor

Transcription

1 Green Real Estate NSCC - RES 130 Online Cate O dahl, Instructor

2 Marketing the Green Spectrum from the Not-So-Green Home to High Performance Homes How to maximize traditional marketing strategies and new strategies to attract green home buyers

3 Green Buyer Demographics What is the color of the green consumer? Female Over 35 Married couples Income over $50,000 Highly educated Mixed racial These demographics were originally identified in the SmartMarket Report of 2005 and subsequent studies confirm the analysis

4 Profile of the Green Home Buyer - Education 40% 35% 30% 25% 20% 15% 10% 5% 0% 1% Green Home Buyer by Education Level 10% Did not High school complete graduate high school Source: M cgraw-hill Construction 32% Some collage 39% Collage graduate 18% Advanced degree 40% 35% 30% 25% 20% 15% 10% 5% 0% Green Home Buyer Changes in Education Levels from 2004 to % 12% High school graduate Source: M cgraw-hill Construction 41% 44% 29% Some collage 29% Collage graduate 19% % Advanced degree

5 More from the RCLCO Report Forest Greens Environmentally- Conscious Consumers Greenback Greens Consumers motivated by financial savings Healthy Greens Consumers motivated by health concerns

6 More from the RCLCO Report

7 Certified Homes in the Marketplace Click on the article to read the story

8 Certified Homes in the NWMLS

9 Certified Homes in the NWMLS New in 2013 GREEN BUILDING INFORMATION SUPPLEMENT Lists Green Features for brokers to identify in their listings

10 NWMLS GREEN BUILDING INFORMATION SUPPLEMENT DETAILS

11 NWMLS GREEN BUILDING INFORMATION SUPPLEMENT DETAILS

12 Client Priorities when looking for a new home Style/Aesthetics Storage Security Safety Resale Value Builder Reputation Reliability Quality of home Privacy Neighborhood Natural Healthy Flexibility Energy efficiency Easy operation Easy maintenance Durability Convenience

13 What Features are Important? Study after study* report that Energy Efficiency Low-e windows 90% furnaces Insulation beyond code Indoor Air Quality Cross ventilation Ceiling fans Low-toxic finishes Still are primary desired green features * October 2013 National Association of Realtors story

14 More from RCLCO Report

15 More from the RCLCO Report

16 Translating Features & Benefits into Client Priorities Understanding and interpreting client priorities Environmentally Friendly Better performance Utility cost savings Health benefits Higher quality materials Higher resale value

17 Translating Features & Benefits into Client Priorities Understanding and interpreting client priorities Energy Efficient Better performance Utility cost savings Health benefits Higher quality materials Higher resale value

18 Discussing Client Priorities Through a Green Lens Any buyer can be a green buyer when you know how to translate their priorities through a green lens Location, location, location Size Building Envelope Heating and Cooling Systems Ventilation Water Fixtures and Systems Appliances, Materials, and Finishes Landscaping Let s have a look at how to do the translation Trends: accessory dwelling units, aging in place, backyard cottages, cottage homes, co-housing, Universal Design

19 Location, location, location Green homes are found in all locations Waterside with views Rural straw bale home in Walla Walla, no hyperlink Urban Single Family Urban Multi-Family Click on the photos for links to more information

20 Size Many Green homes strive to have a smaller footprint, but Green homes are routinely found in all shapes and sizes

21 Building Envelope Advanced Framing Structural Insulated Panels

22 Heating and Cooling Systems In-Floor Radiant Heat Passive Solar High-Efficiency Systems

23 Ventilation Passive Fresh air vents Cross ventilation window design Active Mechanical HRVs / ERVs

24 Water Fixtures & Systems Indoor conservation Outdoor conservation Rainwater Collection simple rain barrel Rainwater Collection Cistern Universal Design bathroom Low-flow dual flush toilets

25 Appliances, Materials, & Finishes Select Energy Star Appliances Select materials & finishes Local Low embodied energy Low toxic Low VOC

26 Landscaping Drought-tolerant, low-maintenance

27 Green Trends Accessory dwelling units Aging in place Backyard cottages Cottage homes Co-housing Universal design

28 Valuing Green in the Marketplace Sustainable building benefits need to translate into the appraisal Click the photo hyperlink to watch the video Sequoia House Seattle, WA

29 Green Spec Home in Seattle Market Case Study Video: Extreme Green Case Study: Martha Rose Construction, Fish Singer Place

30 The Color of the Green Consumer Green competes in a crowded arena with other factors, how do you find the green consumer?

31 Personal Attitudes and Preferences of Green Homeowners Interested in continuous learning and new experiences 79% Active as comparative shoppers 76% Enthusiastic about travel 73% Interested in cooking 64% Socially and politically knowledgeable 58%

32 Other Indicators Car Choice Grocery Store Preferences LOHAS Lifestyles of Health & Sustainability The Cultural Creatives

33 Current trends Demographics Shifts Gen-Xers bought 55% of new homes purchased in % of people surveyed for NAHB SmartMarket Report declared they were extremely knowledgeable about green homes Empty Nesters wanting to downsize Economy impact on downsizing Available bank loans shifting for Energy Efficiency

34 Current trends

35 Future Trends 330,000 market rate homes with green features have been built in the last few years This represents $36 billion per year for this growing industry McGraw-Hill Construction predicts green buildings will represent percent of new commercial and institutional construction starts by 2013, from about percent today Owners are motivated by lowering lifecycle costs (76%), higher ROI (64%) and improved tenant satisfaction (60%). Tenants as well are motivated by lower operating costs (96%) and improved employee satisfaction (71%)

36 Future Trends in Sustainable Development What about the Residential Market? NAHB estimated that by 2010, green homes will make up about 10 percent or more of the national housing market depending on the right mix of incentives and consumer education In Seattle, King County, Certified Homes make up 30-35% of the market, including Energy Star for Homes, Built Green and LEED GreenWorks Realty report on Seattle/King County

37 Future Trends in Energy Efficiency Ratings

38 Green Marketing - Overview Ethics in the Real Estate Profession Battling Green Washing with: Green building certifications Green building educational training Green building product certification Valuing Green Video Built Green 101 Real Estate Professionals, Companion Worksheet

39 Ethics eth ics [eth-iks] plural noun 1. a system of moral principles 2. the rules of conduct recognized in respect to a particular class of human actions or a particular group, culture, etc. 3. moral principles, as of an individual 4. that branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions. Where do you find ethics?

40 National Association of Realtors Code of Ethics Article 2 shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license emphasis added

41 National Association of Realtors Code of Ethics Article 12 shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations The obligation to present a true picture in advertising, marketing, and representations allows Realtors to use and display only professional designations, certifications, and other credentials to which they are legitimately entitled.

42 Greenwashing Exaggerated claims of environmental performance for a product or service

43 Battling Greenwashing Battling Green Washing with: Green building certifications Green building educational training Green building product certification

44 Green Building in Current Marketplace Environmental Accomplishments click the logos for links to more information Credibility Training Product Labels

45 Green Building Certification Programs in Washington Built Green LEED for Homes NW Energy Star for Homes Passive House NAHB Green Building Program LEED Commercial Programs

46 Built Green Certification Programs 11 Local Programs available in Washington State New in 2014 one Unified Checklist All programs Use a checklist with green building action item elements Certify using a star-level rating system, ranging from 1- to 5-Stars All Built Green homes and properties are NOT the same and do NOT have the same features and benefits

47 The Value of Certification Green Building Valuation Initiative E-Cert Report

48 Valuing Green in the Marketplace What Agents can do to help a green home sell for all of its value Sequoia House Seattle, WA Session Two

49 Green Marketing - Messaging Current strategies to market real estate Real estate agent as green building resource Innovative approaches to listing and selling green properties Innovative approaches to attracting green clients Student marketing video: Extreme Green Case Study Martha Rose Construction Fish Singer Place

50 Real Estate Broker as Green Building Resource Source of the source Remember your role as Broker is different than a role as a green building marketer

51 Innovative Approaches - Listing & Selling Green Properties Dialogue Print media Online media Green networking Events

52 Innovative Approaches - Listing & Selling Green Properties Dialogue Talk to prospective first time home buyers about the PAIN portion of the buyer s equation When questioning clients use open probe questions to gather information, then closed probe questions to confirm When buyers are talking, take notes kid s names/needs, schedule issues, specific features/benefits Real estate agents/property manager s job is to relieve the client s burden Don t be so professional with them that you lose them, find the balance Emphasize emotion Sell the sizzle, sell the lifestyle What else?

53 Walk Score Click the image for a link to Walkscore.com to find out more about a new & essential real estate tool

54 Innovative Approaches - Listing & Selling Green Properties Print media List benefits, not just features Add Walk Scores to flyers Don t use acronyms without explaining

55 Innovative Approaches - Listing & Selling Green Properties Online media MLS listing Websites Don t force registration in order to get pricing information Don t put too much info on site so that viewers write off the home before they visit. Trade-off too little and they ll move on Add Walk Scores Social Networking Facebook Twitter These options are not free costs time

56 Websites Make sure your website is attractive with photos, conveys important information and is easily accessible

57 Innovative Approaches - Listing & Selling Green Properties Green networking Green Drinks NW EcoBuilding Guild What else?

58 Innovative Approaches - Listing & Selling Green Properties Events What events would be worthwhile considering demographics? Sponsor a cooking class Be a part of the Green Home Tour

59 Innovative Approaches to Attracting Green Clients Help clients with rebates and tax incentives DSIRE website list incentives and rebates by State Click on the image to go to the web site

60 Innovative Approaches to Attracting Green Clients Arrange for Green Home Tours Behind the walls tours Participate in Green Home Tour Events Annual Solar Tour Local events

61 Innovative Approaches to Attracting Green Clients - Video The following video was produced for our RES 132 Marketing Class in 2010 by Valerie Vozza

62 Valuing Green in the Marketplace What information can an agent list to highlight the increased value of green features in a home they are listing? Session Three: Frequently Asked Questions Sequoia House Seattle, WA