Before you comment on this post you may want to read it all the way through first. Chances are, you will either strongly agree or strongly disagree. But if you are in Real Estate you need to consider all of the different sides before you make your decision on exactly how you feel about all of this.
First, if you read Katerina's post regarding Cap and Trade - Or if you are reading any other article for that matter - I want you to do me a favor for the sake of this post. Completely take out the words Greenhouse Gases, Climate Change, Carbon Footprint and any other word that can be related to Environmental Topics.
What you have left is verbiage regarding creating jobs, energy efficiency and Building Code. As a Certified EcoBroker and CGP - I have closely followed proposed Legislation regarding these same exact topics regardless of where they have been proposed.
These topics are not new by any stretch. State and City Legislation have been battling these very topics heavily for a few years now. Everything from Energy Ratings, requiring homes to be X% more efficient by X year, raising the Building Code, etc.
Certain areas, for example, Texas (specifically Houston) that thrive on Affordable Housing have expressed their concern over strict guidelines because it raises the cost of construction. Some people can not afford to make these changes. For every $1,000 that you raise the cost of a home, it takes X number of buyers completely out of the equation in being able to afford the home.
It's all been talked about time and time again.
However, I am a little concerned about the people that are adamantly against making homes more affordable to LIVE in.
'To LIVE in' - This is the part of all of this that in my opinion is completely overlooked. While I'm not a Fan of much of the recent Legislation for the most part - This particular one I think deserves a little more consideration from the Consumer side of things. I don't think we should rule it out as completely negative yet. Here are just a few of my reasons:
- Homes really DO need to be more Energy Efficient. How about the First Time Homebuyer that is excited to move in to their First Home - They spend money on getting some new furniture, lawn equipment, etc. THEN, they get their first electric bill to find that it is Quadruple the cost of what it was in an Apartment. The cost of actually LIVING in a home just became a realization.
- With the cost to LIVE in a home at top of mind, how about the home that put $100,000 in to putting Granite Countertops, a pool in the yard, Hardwood Floors and made it look pretty - Then went and sold it at the Top of Market Value for the new homeowners to realize that the home Sucks Energy like crazy. Was the home REALLY worth it?
- Over the past 2 years many have realized that we need to consider how much home we need vs. how much home we want. With disclosures on Utility Costs required, do you think that people would reconsider buying that home they can't afford?
Now, the part of the Bill that discusses existing homes being brought up to Today's Energy Codes - I have a question to propose. Are there even enough items manufactured to bring every single home on the market up to Today's Energy Code?
The next thing to consider is the Cost of Building a home vs. who can afford it. Most people believe that only the people who CAN afford it will get an Energy Efficient home. Is that right? It is the people who CAN'T afford it that need Energy Efficient homes the most. Would a stricter Energy Code - Regardless of it being passed at a Federal or State Level - Would that really be a bad thing?
Quite honestly, I am offended when I see 'Affordable Homes' that I know will have an extremely high Utility Bill. I personally think it is an injustice to the people that need it.
Truly Energy Efficient Products - There need to be more of them. Supply and Demand. Who makes the products? People. Jobs.
The Real Estate Industry, and I have mentioned this before, we need to Grasp these changes and accept them. It will not make our lives and jobs more difficult. It will help our clients choose what home is really the best for them. It will help them choose a home that is the most affordable for them.
As an industry we need to look in to learning more about Energy Efficient Mortgages, Renovation Loans, Energy Efficiency Legislation (not just at a Federal Level), Energy Audits and Ratings. We need to Network more with the Folks that do this as their chosen Profession.
The cost to make a home 30% more energy efficient can be as little as about $300 - That $300 could have a 500% return in a lot of homes over a year or two. Many States offer programs to do this to existing homes for FREE.
Let's take a different look at all of this. Without the words Greenhouse Gases, Climate Change, Climate Initiative, Carbon Footprint. Oh, and sorry for not having any pictures. Just got a new laptop and have not transferred over any of my data.
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