A Home Buyer, a Realtor, and a Builder Met at a Coffee Shop

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Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000
https://activerain.com/droplet/5hMq

I promise this is not a whimsical joke created just to attract attention. Especially since ActiveRain culture isn't meant for jokes!

 

No, indeed this is one of those moments when we ponder, "What if?" What if a realtor, a builder and a prospective home buyer met one day.  Each describing what they expected to see in a home, and each came up with something completely different?

 

That's exactly what has been going on for years! 

 

Connecting the dots between what buyers want in their homes and what home builders think they want has always been a matter of opinion. 

 

 

Builders think buyers only care about design and function and not about a particular green certification.  Except that to buyers health and comfort,  home certifications are now more important than ever. 

 

Home buyers expect more from builders as they see and hear companies "going green" on the radio, in television advertising, and in print.  It's everywhere!  They've learned about products and services on their own.

 

One smart builder works to create a great culture of providing what consumers want and boosting employees to make decisions before going to higher management.  Now that's progress and ingenious.  Collectively meeting to solve problems and getting it done is good business.  Providing a building with healthy options speaks to consumers by explaining the benefits.  This builder builds homes that include EPA's Indoor AirPlus package for better indoor air quality.  That sells a consumer!

 

According to this study of 2000 respondents, as reported by Professional Builder magazine builders think that buyers won't pay more for green features, when in fact they will.  Communication has to include clear features and benefits or else buyers are lost in the weeds! 

 

Home buyers don't understand the terminology so builders shouldn't use complicated building product information.  When marketing high performance homes call them something else, ie healthy and comfortable.  Don't label a home as energy efficient if you don't describe the features.  The public needs to see the benefits of a home, not just a list of building products.  

 

If you're looking for a knowledgeable realtor in the Scottsdale area who understands and has experience with these types of homes, please contact me! 

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HomeSmart Elite Group                                  

8388 E Hartford Dr., Suite 100

Scottsdale, AZ 85255                                                         

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Topic:
Real Estate Market Trends
Location:
Arizona Maricopa County Scottsdale
Groups:
Posts to Localism
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Local Expert
Bananatude
Hyper-Local
Tags:
builders
scottsdale homes
phoenix homes
healthy homes
high performance homes
energy star homes
indoor airplus
zero energy ready homes

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Rainer
210,798
Greg Mona
Faira Homes Corp - Scottsdale, AZ
Real Estate in the 21st Century!

Hi Jan Green! So nice to see a great local agent featured here on the Rain! Your post is so relevant to today's market. There are certainly disconnects as you pointed out. I believe the market is headed in the right direction and the gap between what buyers want and what new home builders will actually build will narrow in time.

Apr 02, 2019 10:51 AM #32
Rainer
468,735
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

I'm not an advocate for green especially when the claimed reduction in energy costs and prevention of global warming can't be quantifiable. The home buyers today are just as misinformed as their peers and as their parents were when they bought their homes. Unless a buyer is building his own spec home, there selection to purchase new homes is limited to whatever the developer builds. 

The construction cost is about relative but the land costs is the driving force that makes homes more or less affordable, don't you agree?

Apr 02, 2019 11:08 PM #33
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Sheri Sperry - MCNE® I've been to those events before and you're right, very beneficial.  I may just do that for my LEED Certified listing!  Thank you for commenting!

Apr 03, 2019 04:25 PM #34
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

I appreciate your comments John Henry .  The phenomenal advancements have made energy efficiency mainstream in many states due to reducing costs and builder incentives.  Here in AZ, we've been able to achieve #1 per capita for production built, energy efficient homes thanks to those enhancements.  And with each building code every 3 years, buildings are getting tighter and tighter.   Not every builder adheres to those standards, but the push is there and consumers know the products now.   Once you get into Icynene or Demilec costs go up obviously.  

There are several reasons people do it.  For health reasons as you mention; they're tired of rising electric bills; they want a quieter, more comfortable home; or they truly care about their carbon footprint.  Either way, I'm all for it if done properly! 

Apr 03, 2019 04:57 PM #35
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Very cool Debra Leisek !  Love the interest rate incentive.  That's smart and helps the state at the same time.  Carbon footprint beware in Alaska! 

Apr 03, 2019 04:58 PM #36
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

You're right Michael J. Perry !  There is something for everyone these days, but builders need to pay attention to what builders want. 

Apr 03, 2019 04:58 PM #37
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Agreed Dorie Dillard CRS GRI ABR and thank you for commenting.  You live in a very progressive City for energy efficiency as well.  

Apr 03, 2019 04:59 PM #38
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Very true Nick Vandekar, 610-203-4543 !  The new "next gen" homes are a good example of buyer trends.  

Apr 03, 2019 05:00 PM #39
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thanks for commenting Elizabeth Weintraub Sacramento Realtor Top 1% !  Solar is a whole 'nother topic.  2 of my listings have sole panels right now.  One of them has a monthly average bill of $42!  That is amazing to write about.  Which reminds me - I owe them a blog!

Apr 03, 2019 05:02 PM #40
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Endre Barath, Jr. !  Appreciate your comments!

Apr 03, 2019 05:03 PM #41
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you for commenting Georgie Hunter R(S) 58089 !  I bet folks in your area don't want chemicals in their homes either! 

Apr 03, 2019 05:04 PM #42
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Stephen Turner  actually not all builders build green homes.  Production builders are more known for building Energy Star.  For a state by state comparison, visit: https://aceee.org/state-policy/scorecard

It would be great if builders gave them options.  Some here give options for insulation, ERV's, and solar to name a few .  According to a NAR survey, agents don't understand energy efficiency as much as the general public.  And a different study shows that 84% of consumers are either slightly and are concerned about their energy costs.  So if an agent could translate which features save energy, they'll go a long way in explaining how things work to home buyers. 

Thank you for commenting. 

Apr 03, 2019 05:09 PM #43
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Spot on M.C. Dwyer !  Another reason to familiarize yourself with these features as old housing stock gets remodeled eventually and these types of features will be added.

Apr 03, 2019 05:28 PM #44
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Greg Mona !  Appreciate the read.  You're right.  Builders are getting better about offering what buyers want.  It's the marketing techniques that need to shift.  One example is Next Gen housing.  You sort of catch what that means, but a full sentence afterward will help : )

Apr 03, 2019 05:29 PM #45
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Kimo Jarrett , my peer vendors might argue the point that these features do pay for themselves and reduce emissions. 

I bought a 1979 home with average utility bills of $250 with a couple living here previous to me.  They worked all day and were gone, coming home to cook dinner, etc.  I work from home and am in and out throughout the day.  I added about $13,000  in energy saving measures above my remodel and they've all paid for themselves in 3 years. My average utility bill is $71.  Not only will the next buyer appreciate the improvements, it will add more value on an appraisal. 

Our homes outnumber commercial buildings and are the biggest contributor to greenhouse gases.  Reducing energy bills in our homes does reduce carbon footprints and it's demonstratable by a HERS rater and certification.  I teach this in my classes. 

We have a few builders that offer spray foam insulation over blown in cellulose, ERV's and solar panels.  But the rest is thanks to them being a production builder.  You're right about custom builders and choosing your own options.  

Check out the survey results that NAR distributes.  Interesting stuff.  

Apr 03, 2019 05:36 PM #46
Rainmaker
572,839
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Your knowledge of going green is very impressive. Congrats on the Feature! (You deserve it).

Apr 09, 2019 01:16 PM #49
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Pat Starnes-Front Gate Realty !  It's been a passion for the last 12 years of my 16 in business.  There's so much information but be careful to get the right information for your clients!

Apr 09, 2019 03:01 PM #50
Ambassador
3,152,966
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Love this post and totally agree that builders could do a far better job communicating key green features and the benefits, not only to the buyers themselves but, in their resale value as well. It truly pays to have an agent who can break it down for them, Jan. Your buyers are lucky to have you to do that for them!

Congrats on the feature too!

Apr 22, 2019 05:17 PM #51
Rainmaker
964,412
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Debe Maxwell, CRS !  The picture is of a new-build in Tucson taken about 9 years ago.  That small custom builder was great at advertising the benefits of his thermal cooling sytem in the slab.  Agents need to think of features from the buyer's perspective.  Thank you for commenting!

Apr 22, 2019 09:38 PM #52
Rainmaker
1,214,476
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

As you commented that my post was timely for you ... yours is timely for ME, Jan Green.  I'm presently working with a builder that actually is incorporating some green features into their homes.  Only thing ... they aren't marketing these features in their home marketing.  Unbelievable!  Time and time again after viewing the homes prospective clients remark on those very features ... and how much they LOVE that the homes were built with them included.  Buyers care and are making home choices based upon those features.  Builders need to take note ...

Gene

May 24, 2019 01:19 PM #53
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Jan Green

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