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Let Victoria sellers choose to market "Green" or not!

By
Real Estate Agent with One Percent Realty Vancouver Island

Went to the Victoria Fall Home Expo today.  The event seemed well attended though it didn't feel crowded.  While there were a lot of typical exhibitors there I noticed a couple of things.  

First, there weren't any real estate companies there.  There was one builder, G.E. Miller, who does excellent work, and one FSBO company that shall remain nameless.  But that was it.  It could be a sign of the times or it could be that these events are simply not fruitful for real estate agents.  I don't know, I've never done one myself, if anyone reading this has any input I'd appreciate it.

The other thing was the obvious emphasis on "green" building trends.  From hugely efficient heat pumps, (neat), to mops of the future being touted as green because they use less refills than a swiffer, (not so neat).  Everything was green.  Hotubs were being pitched as green somehow, window replacements for energy savings, (in this climate doesn't make sense on that level), efficient flooring products and on and on.  

One of the exhibitors was City Green Solutions.  This type of company has been popping up recently specializing in energy efficiency assessments.  This is due in large part to legislation that has been passed but not proclaimed that will require all properties that are being offered for sale have an energy audit conducted on them in order to establish their energuide number.  100 being perfectly efficient and 0 being not so much.  This audit currently costs around $400.00  It is essentially an air escape test.  In order to become an energy efficiency assessor you must undergo 2 rigorous training sessions of 2 days each and conduct some assessments in the field with an experienced assessor until you are deemed capable of doing it yourself.  Draw your own conclusions.  

I am opposed to this.  Not the tests themselves, but to the idea that they are going to be mandatory.  I suppose an argument can be made for new construction, but for existing stock this should be left to the homeowner to decide whether they want to market this particular aspect of their property or not.  In the 10 years I've been selling homes I can count on one hand the number of people who factored in energy efficiency in any meaningful way into their buying decision tree.  I'm not saying its not important or that it's not something that more people may be interested in as we go forward.  What I'm saying is that this is an area where the government should not be sticking their noses in.  If someone wants to market their property as energy efficient, and someone else wants to market their property being in a great neighbourhood, let them. I can just imagine the bureaucracy of energy efficiency we have coming our way.

Victoria has actually been the site of a pilot project the past year or so for this program.  The real estate board supports it. (Of course they do, I suppose they have to find somewhere else to spend our money instead of just sticking into our reserves, but that's another article.)  My question to the committee and to the ministry running the project, more than once, was how can I quantify the difference between say a 59 and a 75?  What is the dollar figure?  Just saying 75 is better than 59 is stupid.  Is it a linear scale, geometric, some sort of undisclosed algorithm?  No one called me back. My sellers have all declined to participate.

I wonder why?

  

Posted by

David Langlois - One Percent Realty Vancouver Island.- (250) 858-5575 direct 
www.victoriacityrealestate.com  David@sellwithonepercent.com.com  www.sellwithonepercent.com -

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Trish Sarfert
Coldwell Banker Realty - Pensacola, FL
Serving military & civilian relocations!

David, I don't know about what local programs you may have, but nationally there is no legislation making energy audits mandatory, although there have been unsubstaintiated rumors.  There is a proposal to have it done for new construction in the future, possibly to go with the pending new updates of the International Building Code which will have higher energy efficiency standards, but there is nothing mandatory at this point.  As Realtors, we (in Florida, at least) are required to hand out the Energy Efficiency brochure to all buyers.  I think buyers should be aware of the potential energy costs of different homes, as this will affect their ability to make their mortgage payments if the energy costs are too high. 

As for the training to become a rater, it is actually much more intense than 2 two day sessions- the classes in Florida are 2 one week-long sessions, and you have to have a good background in HVAC, and construction background is helpful as well.  There are different types of ratings as well, although all do incorporate the blower door test.  You can visit the RESNET website if you would like to learn more.

Oct 23, 2010 04:16 PM
Kathy Clulow
Uxbridge, ON
Trusted For Experience - Respected For Results

David - perhaps our illustrious leaders will be able to claim they created more jobs ..... Trish likely did not notice the BC After Victoria and that you are Canadian.

Oct 23, 2010 04:27 PM
David Langlois
One Percent Realty Vancouver Island - Victoria, BC

Hi Kathy - sure, more jobs at the expense of home owners...

Hi Trish, as Kathy said, I'm in BC.  The legislation I'm talking about is a provincial act that has been passed but not fully proclaimed - meaning has yet to be implemented.  New home builders are opposed as it adds onerous costs to building that we know consumers simply will not pay - a recent worldwide award winning green platinum LEED etc etc etc development carried with it approximately a 15% surcharge on market value to pay for the green features.  Result - lots of awards, project dead, developer broke.

In terms of making buyers aware of energy costs, I like to get them the actual costs for the actual home they are looking at buying.  And if a heating bill is going to tip a buyer over in terms of being able to make the mortgage payments, there's no way they're getting approved through our lending process up here, so it's not really an issue.  Though obviously the lending practices are different south of the border. :)

Oct 23, 2010 05:42 PM
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

David,

I agree with you. This is nonsense, and there is far too much government intereference anyways.

Brian

Oct 24, 2010 06:06 AM