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Is there a disconnect between the green home market and consumers?

By
Real Estate Sales Representative with Green Gamut

Recently while visiting the Northwestern Michigan College M-Tech Center I really began to wonder what the future holds.  I hear and see so many claims to modern technology that is already in existence, yet not being sold on the market place.  I questioned why this is.  The answer I got was concerning.  It would seem there is a break down between the various stages of supply and demand.  You can't have cutting edge technology with out installers knowing what to do with the product.  Once the product is installed you need someone who can explain the benefits.  You hope by the time the person is explaining the benefits, the manufacturer will have sufficiently promoted the product so there is some recognition of the product and so on. 

That made me think about why as an EcoBroker am I not busy all the time.  The answer is simple really there is a disconnect between the consumer, the builder, the media and the Realtor.  In order to build green all you must do is follow a set of guidelines and currently there are several.  In order for the consumer to want a green home all they need do is turn on the tv or open a newspaper and the benefits are right there.  Realtors now have 2 opportunities to be able to represent green homes through EcoBroker and NAR Green Designation.  So why aren't we seeing more homes going green?  I believe consumerism is to blame.  It is hard to want to share.  In this case every one is being asked to share in the profits.  The Builder plans for a certain amount of profit to be built into the home.  The Realtor plans on a profit for both the listing agent and the selling agent that cuts into the builders profit.  The media plans on a profit from the marketing that cuts into the Realtors profit.  The consumer plans on a profit from the final offer that cuts into both the builders and Realtors profit.  So who is going to win and get the most profit?  If the industries work together the consumer is ultimately the winner.  In contrast when they don't no one wins as profits tumble and feelings of resentment and being on the losing end create ill will between all involved. 

Social Sustainability shows us a new way in which to work together for the common good of all.  When industries work together sharing the risk and rewards we no longer have conflicting needs.  The Consumers tells us what is important, then the individual industry work together on a best management plan that provides adequate profits for what now is a team effort.  This is easily accomplished through shared information, training, and planning. 

I want to hear from you if you have seen examples of this in practice.  Has it worked?  Is it even possible?  How would you let builders, media, consumers and Realtors know how it is in there best interest to work together?

Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

There is just no consistent defination of "green".  It can mean different things to different people.  I think we need to do a better job of letting the public know what "green" means.  You raise a lot of other important points as well.

Aug 20, 2008 02:34 PM
Pete Jalbert
The Maui Real Estate Team, Inc. - Paia, HI
R(S)

I am not sure that you have such a concerted effort among media, builders and Realtors with conventional homes. Not to be cynical, but most are looking at this from a business perspective and aren't concerned about how the other parties get their slice.

That being said, I think you can empower yourself as the Realtor. Take the time to meet with builders you may know and let them know about Green products that they may want to consider incorporating. If you have demand from consumers but don't have green inventory, let the builders know there is opportunity out there and there is a niche to be filled. With the current new construction market, I would think think they may be receptive to different opportunites. In terms of the media, I think it is a pipe dream to expect advertising departments to help you. However, if your local newpaper has a weekly or monthly home section, talk to them about green homes and the opportunity to present green to their readers.

 

Aug 20, 2008 06:37 PM
Michelle Finnamore
Toronto GTA, Alliston, Newmarket - Vaughan, ON
Preparing your property for sale

Here in Ontario we have many major builders building green and getting front page exposure in the local, provincial and national newspapers that allow the homeowners to learn about this growing segment of real estate.

It seems to be working as I notice more people talking about it in the local coffee shops whether they are looking to buy or not. Good exposure for everyone will ultimately benefit everyone.

http://www.theglobeandmail.com/servlet/story/RTGAM.20080806.re-rand0808/BNStory/GlobeSportsGolf/

 

http://www.mattamyhomes.com/corporate/news/press.asp?id=1635

http://www.sustainablebuildingcentre.com/u_s_green_project_enters_canadian_home_market

Aug 22, 2008 01:43 AM
Mike Hogan
The Hogan Group at Keller Williams Realty - Mechanicsville, VA
MBA

Tony you hit on a topic I think about quite a bit. Real estate is a very localized market- as we all know. Different markets have different attributes. Such is also the case with green marketing. Different markets adopt the ideas of green building much more quickly than others.

Here in the Richmond, VA market- the mere mention of green, eco, sustainable etc...brings images of hippy treehuggers. So green marketing has an issue in a market like this. How does a builder or REALTOR effectively market green attributes without alienating a large portion of its customer base?

The answer I'm finding...leave out the green terminology. Focus the message on the benefits that being green provides. Focus the message on creating healthier environments through the use of no VOC paints, formaldehyde-free cabinets, paperless sheetrock, etc. Focus the message on lowering monthly utility bills through tighter enveloping of the building, more insulation, high quality Low-e windows, etc.

My point- for green marketing to go mainstream- we have to stop using green as the reason for the marketing. The benefits of being green affect us all in a postive and profound way- so market those benefits instead the terminology.

Aug 22, 2008 01:30 PM
Brian Sharpe
Tierra Antigua Realty - Tucson, AZ
Tucson EcoBroker

I agree with Mike 100%. I'm in Tucson AZ where we have an abundance of sun and Energy Efficient Homes are not being built everywhere but there are new communities coming to market.

I don't talk to potential clients about green this or green that in homes. I talk about energy efficiency and environmental indoor air quality and the benefits to a family's health.

I have clients ask me what greenwashing is and I find explaining the term has varying degrees to green so I try to stay away from the green talk and highlight the above mentioned features. In my advertising I don't go near the word green.

Good post Tony on a very confusing topic.

Aug 22, 2008 04:27 PM