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Is Green Really Gold Or Just Another Marketing Scheme?

By
Services for Real Estate Pros with Park Creek

Green is the latest craze in all aspects of product development. There is even a bleach product now that claims to be Green. What is Green about bleach. Like with most things, you can achieve any goal if you skew your perceptions just right.

Green Building is no different and is the latest in the new home marketing push. Unlike the bleach expamle, I fully recognize the opportunity to build a cleaner, more energy effecient, more environmentally friend home or development. From the overall development, to the finishing touches on the home, building Green is said to provide the added marketable touch needed to stand out above the rest in today's competitive market.

Truth be told, in most jurisdictions, development codes, building codes, and environmental regulations have been put in place in short as an effort to produce a better product with less impact on the environment. I believe it's safe to say that in some areas, this is taken to a whole new level of governmental controls, but for the most part, from storm water and erosion control to better weather proofing and energy efficiencies, these are all things we are required to do, that in effect provide us with additional marketing opportunities.

The questions I pose to you as real estate professionals are: Are buyers really looking for this in the market place? Is providing an Energy Star home, or Green Certified home, something people are looking for, or does it just provide an added line item on the listing? Granted anything that sets you apart from the crowd, as long as it does so in a positive way, should be a good thing in a competitive market. The one thing you can't afford is to market yourself into a niche, because in today's world, you need to keep your buyer options as wide spread as possible.

In our future endeavors we fully anticipate taking advantage of the codes and regulations we have to abide by anyway, but what added benefit do you anticipate that will bring?

Suzanne Champion
N.J. Realty - Westerville Ohio - Columbus, OH

There's a lot more to building green than just meeting the building regulations we have today. 

There are indeed builders who go the extra mile, and YES it is important to some buyers.  As energy costs rise and more people start to CARE about the impact we have on the planet, the interest in green will grow.  It's not just about marketing. 

You can even have Zero Energy homes that produce as much energy as they spend.  Who wouldn't like that?  Plus, green building is also about indoor air quality and conserving building resources, reducing waste.  Who would argue that these things aren't good values?

Aug 20, 2008 02:32 AM
Suzanne Champion
N.J. Realty - Westerville Ohio - Columbus, OH

Let's add that it's true enough that MANY products pretend to be green just to grab that marketing dollar.  Just as in anything we buy, we need to be able to recognize what's the real thing and what's just posing.  A smart consumer gets educated, and enlists the help of professionals who are aware of the pitfalls of not being willing to check behind marketing claims.

Aug 20, 2008 02:37 AM
Jerri McCombs, Broker/Owner
Dogwood Real Estate Services - Hendersonville, NC
Hendersonville Living

I am very interested in Green and have been working with it much longer than the most recent FAD. But I am personally happy to see that people are finally paying attention. When I first started looking into solar panels and rain catchment systems about 15 years ago people were looking at me as though I had lost my mind. Today those same people are asking me- what was it I was doing way back...

What ever it takes to get people to look at what they are costing the planet is good to me. As a buyers agent I have not been asked even once to find a green home, or even an energy efficient home yet. I do continue to point out all of those great things in homes I show.

I am still a believer and have hope. I am in the process of getting certification as an Eco Realtor here in Western North Carolina. I have hopes that the public will start asking those all important questions soon and I will be ready.

But I certainly agree that we cannot back ourselves in the corner and create a niche market that is not there or is not ready. And with all of the market issues of today, we need all of the niches we can get.

Aug 20, 2008 02:43 AM
John Morrison
Buyer's Choice Realty - Ipswich, MA
Exclusive Buyernulls Agent, CBR - Boston Area Real Estate

Good comments so far. It is relatively easy to go green, even in older homes. The level of greenness (greenity?) is where the marketing comes in - energy efficiency is good for everyone and is definitely not just another fad.

Aug 20, 2008 02:53 AM
Charlene Sandoval
Keller williams West sound - Gig Harbor, WA
Relocation and Real Estate Gig Harbor Washington

Green Mortgages Equal Larger Loans and Efficient Homes

Tired of heat and energy prices skyrocketing out of your budget? Now you can do something about it...and your mortgage can help!

Energy-efficient improvements, such as installing double-paned windows and additional ceiling insulation, can save you money every month, not to mention pay for themselves in the long run. But how do you come up with the cash to pay for those projects up front or to buy a slightly more expensive house that already has them? One way is with a "green mortgage."

What is a Green Mortgage?

Green mortgages actually come in a couple of different formats. Officially these loans are classified as either Energy Efficient Mortgages (EEMs) or Energy Improvement Mortgages (EIMs).

An Energy Efficient Mortgage essentially allows you to purchase a home that is already energy efficient - even if the price of that home is larger than you would normally qualify for under your debt-to-income ratio. Energy Improvement Mortgages, on the other hand, allow you to take out a larger loan to make energy efficient repairs and improvements to a house that is not currently rated as energy efficient.

The main benefit of both of these mortgages is that they help you to qualify for a larger loan amount and help make it possible for you to live in a better, more energy-efficient home. The basic principle behind this type of financing is that the money you save from the more efficient home will offset the larger mortgage payments.

Qualifying for a Green Mortgage

To qualify for a green mortgage, you typically need to have a Home Energy Rating conducted. This rating provides the lender with an Energy Savings Value, which is the estimated monthly energy savings and the value of the energy efficiency measures.

Depending on your unique circumstances, you may qualify for a conventional, FHA, or even a VA green mortgage. Each type of loan is designed to fit specific situations and, therefore, each loan has specific requirements that must be met.

You can learn more about the differences between conventional, FHA, and VA green mortgages at the Energy Star website. And for more details about green mortgages in general, visit the HUD website.

Whether

Aug 20, 2008 03:23 AM
Lori Isaacson
Credit Restoration Consultants - Plantation, FL

Hi Carl,

On behalf of Credit Restoration Consultants and the 104,900 plus members of ActiveRain, I wish to welcome you to the network.  Should you ever have a question as it relates to bad credit, credit repair, credit restoration, or identity theft, please do not hesitate to contact me at (954) 581-5050 or at my direct dial number of (954) 449-9987.

 Best wishes,

Lori Isaacson

Aug 20, 2008 03:28 AM
Charlene Sandoval
Keller williams West sound - Gig Harbor, WA
Relocation and Real Estate Gig Harbor Washington

Green Mortgages Equal Larger Loans and Efficient Homes

Tired of heat and energy prices skyrocketing out of your budget? Now you can do something about it...and your mortgage can help!

Energy-efficient improvements, such as installing double-paned windows and additional ceiling insulation, can save you money every month, not to mention pay for themselves in the long run. But how do you come up with the cash to pay for those projects up front or to buy a slightly more expensive house that already has them? One way is with a "green mortgage."

What is a Green Mortgage?

Green mortgages actually come in a couple of different formats. Officially these loans are classified as either Energy Efficient Mortgages (EEMs) or Energy Improvement Mortgages (EIMs).

An Energy Efficient Mortgage essentially allows you to purchase a home that is already energy efficient - even if the price of that home is larger than you would normally qualify for under your debt-to-income ratio. Energy Improvement Mortgages, on the other hand, allow you to take out a larger loan to make energy efficient repairs and improvements to a house that is not currently rated as energy efficient.

The main benefit of both of these mortgages is that they help you to qualify for a larger loan amount and help make it possible for you to live in a better, more energy-efficient home. The basic principle behind this type of financing is that the money you save from the more efficient home will offset the larger mortgage payments.

Qualifying for a Green Mortgage

To qualify for a green mortgage, you typically need to have a Home Energy Rating conducted. This rating provides the lender with an Energy Savings Value, which is the estimated monthly energy savings and the value of the energy efficiency measures.

Depending on your unique circumstances, you may qualify for a conventional, FHA, or even a VA green mortgage. Each type of loan is designed to fit specific situations and, therefore, each loan has specific requirements that must be met.

You can learn more about the differences between conventional, FHA, and VA green mortgages at the Energy Star website. And for more details about green mortgages in general, visit the HUD website.

Whether

Aug 20, 2008 03:57 AM
Nate Blankenship - Spartanburg, SC Realtor
Keller Williams Realty - Spartanburg, SC

Welcome to Active Rain! This is a great site to network, learn and share ideas with others. Have a great day!

Nate

Aug 20, 2008 04:10 AM
P G
Charlottesville Solutions - Charlottesville, VA

I see that you are new to Active Rain and I just wanted to welcome you. I hope that you enjoy it as much as I do and that you find it a great resource.

Aug 21, 2008 07:14 AM
Charlene Sandoval
Keller williams West sound - Gig Harbor, WA
Relocation and Real Estate Gig Harbor Washington

where do you go to get certified as an eco realtor?

Aug 22, 2008 03:57 AM