Showing posts with label Green Real Estate. Show all posts
Showing posts with label Green Real Estate. Show all posts

Monday, April 28, 2008

Earth Day Post


I have been avoiding this post like the plague. Are there any other emails I can check? Classes to create slides for? Inventory charts? Houses! I need to sell houses! Anything to avoid this subject after all the headache it caused me last time.

I was going to make my Earth Day post on home watering systems to tie in with the Permaculture post, but that will have to wait. The California Association of Realtors put out a call to action against a green housing initiative on Earth Day itself.

“C.A.R. is OPPOSING AB 2678 (Núñez) which among other things, requires that ALL homes and commercial property in California have an energy audit at point-of-sale and that mandatory energy efficiency investments be made. While C.A.R. appreciates the goal of AB 2678 C.A.R strongly opposes the point-of-sale requirements in AB2678 because they fail to achieve the bill’s objectives and, such mandates will further weaken the housing market. If enacted, AB 2678 could add thousands of dollars to the cost of purchasing a home, including up to $400 just to have a home audited.”

Again, I disagree with the political position of the PAC in charge of real estate in California. Again, I feel frustrated that there is no point in voicing such an opinion. I have found nothing online about this bill except what C.A.R.has printed against it, so I find it hard to make an informed decision. Even with only hearing the reasons against it, I am hesitant to become an Orwellian sheep in the matter.

Energy audits are what Ecobrokers are encouraged to try to talk their clients into voluntarily. I have yet to run into one that comes close to $400. We all have classes and discussions as real estate agents on how to talk our clients into spending money to make their house more marketable. Many of these upgrades are simply making your home more energy efficient, like double pane windows, etc. Making such assessments and improvements mandatory would not only make our job easier, it would go a long way to making this world a better place.

Spending money at a point-of-sale may sound unfavorable prima facie, but it is much easier to spend money at that time rather than while someone is already established in a building. Changes need to be made, and such changes will ultimately save money for our clients when they pay less monthly for energy bills.

In the end, I am sure that C.A.R. will get what it wants, so I will continue to encourage you to get energy audits and improvements on your own. In the meantime, I am finding it difficult to juxtapose my profession with my conscience.

Sunday, September 23, 2007

Green Frustrations

I hereby offer my apologies for my absence. (Max!) Blogging has been interrupted with contracts and home sales. Although most of the country is in a housing slump, the South SF Bay Area is still going strong.

It is a relief to receive emails from people requesting more writing on the subject of green real estate. Lately it feels that green real estate expertise is an unwanted commodity. I was at an office meeting last Tuesday where Bay Area real estate leaders proclaimed an anti-environmentalist agenda. Home buyers are much more interested in a home’s school district than whether or not it is oriented well for passive solar heating.

Reading my RSS feeds had to take a backseat while I studied up on the meanings behind public school API scores. My mother is known within the office as an expert on which schools are desirable. You tell her an address, and she will tell you what school district it is in. While I still have to look the address up, I feel confident in knowing on which homes buyers are still outbidding each other.

Still, within these school districts it is possible to search for home features that encourage energy efficiency, good indoor air quality and water conservation. I try to point out such features and be an environmental educator as I go. I am sure other educators will share in my frustration in not knowing whether I am getting through to anyone. People do not want to be preached to when buying a home. They want someone to listen to their needs. So my ideals should always take a back seat to my client’s ideals. In this market, public school test scores are the ideal.

Last Tuesday at our weekly office meeting, Mark Burns, president of the Silicon Valley Association of Realtors (SILVAR) came with Adam Montgomery, the Association’s Government Affairs Officer to speak to our office about the Association’s political action committee, and to ask us to donate more money to the cause. They were bragging that on a local level the Association of realtors is one of the largest PACs and whomever they back has always had enough money to win.

While speaking of whom they were backing, Mark Burns also entertained the group by talking down candidates and measures in need of defeating. The act was much in the vein of Rush Limbaugh entertainment, causing the group to laugh and shake their heads. To disagree with such statements would make one seem foolish and deserving of ridicule from all the jocks in one’s high school graduating class.

He then went on to describe with disdain an example of New Urbanism being backed by a candidate that simply must be defeated. His reasoning was entertaining, but familiar. I know of numerous studies that have proven that more lanes of traffic actually do not ease but increase congestion, but I kept quiet. The candidates had already been chosen by committee and were not up for debate.

Later he mentioned the need to block initiatives in Cupertino trying to make building and remodeling more Green. We are already Green enough and such laws would make development worthless. I was overwhelmed by the groans of agreement within the room.

I used to think that becoming a Green-focused Realtor might be redundant. SILVAR has already attained a Green business certification. The debate over the existence of global warming has ended, and the movement is well underway. If everyone has heard of a straw bale home, surely everyone knows the need for more sustainable housing.

However, the general attitudes of those in the real estate industry are far behind public opinion, especially in the Bay Area. What seems like a logical next step in action to me is impractical and inconvenient to those whom are in a position to take action.

No, being a Green Realtor is not cliché yet. All the same, your emails of encouragement are a huge help to remind me to not just give up and join the rest of the crowd. Now, if only one of you Green-minded readers would just buy a house from me! Putting your money where your mouth is sends much more of a statement than any writing or petitioning.

No study proving the value of new urbanism will change the mind of Mark Burns. Customers demanding to only spend money on environmentally conscious homes will change the mind of Mark Burns. The people in power are only following what will most easily turn a profit for them. The power to make the world a better place is in your hands.

Thursday, July 5, 2007

Green Building IS Worth It.

I came across a fellow blogger at Lime.com that asked if his green building was worth the effort over conventional building if he is only going to be moving away soon anyway. Of course I had to respond:

I would say it is worth it! And most Realtors would agree with the value of building green. Here is some green market data I gleaned while getting my certification from EcoBroker.
  1. When you build the studio, have a certified Energy Star inspector come out and rate it. Have them rate your home too, while they are there. More than 2000 builders have constructed over 200,000 Energy Star qualified new homes, locking in financial savings for homeowners that exceed $60 million annually. The nations 10 largest homebuilders are now Energy Star partners, and 23 of the top 25 builders offer Energy Star qualified homes. It is something that gets marketed when you sell your home. Even if your home does not qualify, the rating it is given can enable the buyer of your home to qualify for a larger loan to make it more energy efficient before they move in. Government programs have incentives for such things.
  2. Do a quick search for an organization that specializes in green residential buildings in your area. I know Built Green operates near you in Colorado, and Build it Green is my local one in the SF bay area. They might be able to help you with your project, and any certification they offer can be marketed like the Energy Star marketing mentioned above.
  3. Analysis indicates home value increases by about $20 for every $1 reduction in annual utility bills ("More Evidence of Rational Market Values for Home Energy Efficiency" from the Appraisal Journal).
  4. 94% of 300 American consumers surveyed by the Cahners Residential Group in 2001, cited their most sought-after green upgrade as energy savings, followed by water-saving appliances and recycled building materials. In addition, roughly nine in ten (91%) said energy efficient features in a new home are extremely or very important.
  5. In a 2002 nationwide study of more than 400 home buyers conducted by American LIVES, more than half the respondents said they are willing to pay more for formaldehyde-free insulation, environmentally friendly paints, solvent-free andhesives, and other materials that do not release chemicals into the air.
  6. In 2003, with the help of energy efficient technologies, Americans saved over $8 billion on their energy bills while preventing greenhouse gas emissions equivalent to the emissions from 18 million vehicles. These benefits have helped develop a national market for energy efficient products, with more than one billion Energy Star products sold and billions of square feet of building space improved.
  7. The most important environmental issues for consumers are: saving energy, using recycled content building products, improving air quality, and saving old-growth threes.
When you sell your home, my advice would be to market your home's green qualities. Certainly your studio built with green in mind from the ground up is very marketable! There are people willing to pay a premium, and even move from farther away in an effort to find a green home. Make sure your agent markets your home in:

Dwell Green
EcoBroker
Green Real Estate
Green Homes For Sale
Listed Green
and Sustainable Sources

Never price your home higher for any upgrade. Price your home competitively with your neighbors. The lower you price your home, the more people will see it, and bid the price up. This is especially true if they are competing for a green building. You can always reject an offer if no one competes like you expected, and raise the price. However, starting too high and lowering the price as you follow the market down is much more difficult to fix, and makes your home a dud weather you built with straw bale or baby seal fur!

Have fun with your renovation, and rest assured: It is definitely worth it to build it green.

Sunday, June 24, 2007

Portrayal of Wasteful Realtors in Movies

My daughter learned to ride her bike without training wheels, and promptly broke her arm. Just in time for summer when she wants to spend her time in vigorous activity and swimming! To compensate for her frustrations, we have taken her to the movie theater frequently. Twice now, there have been Realtors portrayed as bad characters.

The first one was in Nancy Drew. I almost died laughing when the Realtor identified herself as "Barbara". The way she says "Barbara of Barbara Barbara Realty" is almost exactly how we say "www.barbaragrealtor.com". I was looking for a movie picture of the character to put here. I thought I had finally found one, when I double checked, and it was a real Realtor. Overdressed just like the character.

The second one was last night in Evan Almighty and this time it was not simply the overdressed opulence being portrayed. This Realtor was excited to sell ridiculously over sized houses on land that used to be a pristine wilderness. The theme of the movie was green, and I thought fit perfectly with a point I want to make here.

Portrayal of Realtors as the bad guys is not entirely unfounded. These characters are funny because they hit a chord of truth. They are only interested in the hero of the story when they are buying or selling a house. If the hero is not buying or selling a house, the character is trying to talk them into buying or selling a house. The hero doing something financially unsound is cause for celebration with champagne for the Realtor.

Already I have been to meetings for Realtors counseling us to be pushy. On one level it makes sense because the industry is set up to only reward the Realtor for sales. I have been told many horror stories of Realtors investing a ton of money, time, and energy on someone who uses all their hard work only to turn around and give their friend's cousin the commission. Experienced agents learn not to invest their emotions in anyone until they are certain that person is committed to bring them money in the end.

Both Realtors portray the attitude of "consume, consume consume" instead of "location, location, location". We laugh as the characters encourage the purchase of something the heroes don't need. Then they try to sell more of it. Run out of room? Tear down all the trees and make more so they can sell some more!

There is definitely a housing shortage in the Silicon Valley. All the orchards and farmland have gone for great big boxes with no yards. Everyone loves to blame the builders for these monstrosities, but they wouldn't build if it were not constantly being bought. There is a demand for housing near all these jobs, and that demand needs to be met. Realtors have clients in need of a home, and they want a big home. Tear down and build so we can sell them!

The rental market here is ridiculous. The cost of maintaining an apartment complex is more expensive than any rent income by tens of thousands of dollars each year. The only money to be made as a landlord is to purchase a complex, and sell it years latter at such a higher cost it makes up for all the losses while they owned it. So how do we as Realtors advise someone to make money in rental properties? Consume, consume, consume!

This can all be done sensibly though. The National Association of Realtors is the largest political action committee in the United States. The purpose of a PAC is to influence laws and lawmakers. Right now we influence real estate laws to be like that of a multi level marketing scheme. Simple changes in the structure we espouse, would mean less money for the top of the pyramid, but a healthier relationship with our clients. Realtors should be independent contractors, or salaried employees of the broker. Not an unbalanced combination of the two with legal ramifications for being too independent or too organized.

City ordinances disallow places to live to be combined with places to work. There is no such thing as an apartment above the bakery shop. The lady handing you your cruller had to commute from Los Banos.

It is also illegal to rent out a room in your house. Granny units are highly regulated. An apartment above a garage is unheard of here. Wouldn't it be nice if an elderly couple could charge rent that a school teacher could afford? This would prevent them from commuting to work to supplement their pension.

Most importantly, we need to demand smaller houses. I am not saying you need to give up the "American Dream", although for some people a small ecological footprint is the dream. If the space in our homes were used as efficiently as possible to maximize the use of the resources available, many homes could have the look and feel of the huge monstrosities on the inside without the imposition of real estate on the outside. We do not need to reinvent the wheel here. Other countries have glamorized living small for centuries.

These are all sweeping general policy ideas that have very little to do with your personal efforts of making the home you have more green. I do not ask you to start any crusades for these causes unless you want to. I do ask that you keep these ideas in the back of your mind as you make purchasing decisions that influence public policy. When dreaming about your dream home, look for smaller inspirations. If housing polices are being examined in your area, speak up for allowing home businesses, granny units, and blended zoning.

When you run into a Realtor that fits those movie stereotypes, give them some understanding for their circumstances. Try to keep in mind that we are not all like that. Some of us are even actively trying to fight such behavior.

Saturday, June 16, 2007

Green Staging

My mother is the Queen of staging a home for sale. Over the years, she has built up quite a collection of staging supplies. Several years ago, I was impressed to watch her make an arrangement with her favorite furniture store. The furniture store lent her furniture for staging in her spec home. In exchange, this gave them extra storage and visibility. People would go through a fancy open house, and see the price and where to obtain the furniture that caught their eye.

This weekend, I am holding an open house in Morgan Hill. Here is a picture in case you are trying to look at that link after the home is sold. The house is vacant and beautifully staged. As large as her collection is, she still had to go out and buy more stuff for staging.

All this got me to thinking of how to stage in a sustainable way. A benefit of all my reading and researching green homes is that by default, I also learn a lot about household products that were produced sustainably and promote green living. As my mother has need to replenish and replace her collection, we can aim for using these green products.

Here is where I need your input. How would you know if you were walking through an open house if the stuff around you was environmentally conscious? Are people looking for green homes already familiar with green products? Would little note cards explaining how they are sustainable, and where they can be obtained (similar to the furniture my mother used) be useful information to you? Or would it be just too much marketing for too many things, and make you feel like you are in the IKEA scene in Fight Club? I need your feedback! Please leave a comment below.

Saturday, June 9, 2007

Goals

Why I Am Setting These Goals

As of this posting, I am brand spanking new! The Department of Real Estate web page has me listed as licensed, so I assume they have finished my paperwork, but I have not yet received my license in the mail. When I do, I intend to join the National Association of Realtors even though the PAC grates against my sense of social responsibility. My idea is to work with the established real estate system instead of against it in my attempts to create social change.

Besides, my focus is not big industry or PACs or government. My focus for change is a much larger group that is much less organized; people like me. People who:
  • Recognise the scientific evidence that the world cannot sustain the status quo.

  • Would like to help without living in a hut, eating twigs.

  • Prefer to make green changes when it saves them money.

  • Prefer to make green changes when it is convenient.

  • Prefer to make green changes when it would mean raising their standard of living, not lowering it.
I have amassed quite a library on sustainable living, and I know my way around the online communities for the subject. I love to spend my spare time just thinking, reading and experimenting with these ideas. I could certainly simply share my findings here, but I would rather direct you to other blogs and websites that already do this. I would prefer to offer people in the south bay a service. I want to be the go-to girl for getting green ideas implimented in your home. I do not indend to charge for this service. I know real estate books focus on get rich quick schemes, and that just turns me off. I find more satisfaction in volunteerism. I only ask that you consider the "G" Team if you ever need to buy or sell your home.

What My Goals Are

With this in mind, I have some goals to set on how I can go about integrating my knowledge into services for the south bay area.

  • Become EcoBroker Certified. This will keep me up to date on green home certification programs such as Energy Star Qualified Homes. This will also assist me in working through issues that may arrise in real estate transactions such as mold, radon, and indoor air quality so that I can provide real solutions that center around energy efficency and sustainable design.

  • Attend local green group meetings and classes. This will keep me abreast of how local laws and regulations effect our local and global communities. This will also enable me to network with other green professionals to call on when their specific area of expertise would be useful in your home. As new products and techniques become available, this is where I will hear about them first.
  • Learn paperless transaction techniques. My most memorable childhood recollection of my mother's real estate business was the mountains of paperwork she carried and stored. This has lessened considerably since the advent of the internet, but I have heard of transactions going totally paperless. I would like to look into this more.
  • Organize and grow my collections of books, articles, and magazines. I know where it all is and how to access it when I need it, but an organized bookshelf at the office would enable people visiting to browse, borrow, and refer to them just as easily as I do. My online sources should also be organized and available on the website or here in this blog.
The next step is to articulate how these goals will be implemented into services to offer my community. I have some ideas brewing, but they will be saved for future blog posts. ;-)