GREEN BUYERS, TENANTS, OWNERS, AND SELLERS 4. In This Chapter The green buyer, tenant, owner, and seller Listing and marketing the green property.
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In This Chapter
The green buyer, tenant, owner, and seller
Listing and marketing the green property
Disclosure issues
4-1
The Green Home Buyer
More than 90 percent consider energy efficiency important
Source: National Association of REALTORS®, 2007 Profile of Buyers’ Home Features Preferences, http://www.realtor.org/BuySell.4-2
The Green Home Buyer:Energy Efficiency
4-3
Attuned to energy efficiency:– Repeat buyers– Buyers of new homes (new construction)– Older buyers– Foreign buyers
4-4
71 percent are female
Two-thirds have an annual income over $50,000
Average age is 45
Married
Highly educated
The Green Home Buyer:Demographics
Source: McGraw-Hill Construction, 2007 The Green Homeowner, Attitudes & Preferences for Remodeling and Buying Green Homes, SmartMarket Report, http://www.construction.com
4-5
Green Motivation: Home Buyers
Source: McGraw-Hill Construction, 2007 The Green Homeowner, Attitudes & Preferences for Remodeling and Buying Green Homes, SmartMarket Report, http://www.construction.com
Operational cost
Environmental concerns
Occupant health
Green Motivation: Tenants
4-6
Indoor air and environmental quality improvement
Corporate environmental commitment
Value of public relations and free publicity
Greater workforce productivity
Operational cost savings from energy efficiency
Source: The Dollars and Sense of Green Retrofits, joint study by Deloitte (http://www.deloitte.com/us/responsibility) and Charles Lockwood (http://www.charleslockwood.com), 2008.
Types of Green Clients andCustomers
4-7
Economizers– Operating cost savings– Worthy investment
Investors– Making money– Cost-benefit analysis and value proposition of green
home and building features Health Conscious
– Potential health benefits
4-8
Types of Green Clients andCustomers
Idealists– Social responsibility– Truly committed– Willing to sacrifice
Lifestyle-Focused– Living by sustainability principles contributes to
meaningful and comfortable personal lifestyle
4-9
Types of Green Clients andCustomers
Eco-Chic– Status and prestige– Being involved, owning the latest green feature or
gadget– May not truly subscribe to green philosophy
Skeptical/Unaware– Skeptical of green hype– May not agree with philosophy– Not aware of or uninterested in the options and potential
benefits
4-10
Addressing Green Potential
Low cost examples:– Using CFL or LED lightbulbs– Install a programmable thermostat
Medium cost examples:– Replace carpet with no-VOC style– Consider xeriscaping– Install window shading to manage heat loss or gain
High cost examples:– Install solar hot water heater– Replace windows with double pane, low-e models
Conduct research
Prioritize showings
Use checklists
Offer observations
Ask questions
Adjust approach
4-11
Helping Buyers and Tenants Find a Green Home or Building
Presenting Information
4-14
Be careful
Do not position yourself as an expert
Establish boundaries
Give client a sense of factors to consider
4-13
Presenting Information
Do NOT say:– “This is a green building…” – “This Indoor Air Quality will be good for worker
productivity.” – “This is a high-performing energy efficient home.”– “The property’s low-e windows, no-VOC paint, and
bamboo floors make this a good choice.”– “Southern facing exposures are best.”
Green Designee Obligations
4-14
Don’t market or describe a property simply as a “green building” or “green home.”
Do find out what green features are most important to your buyer.
Do keep current on green issues.
Don’t overstate your knowledge.
4-15
Green Designee Obligations
Do encourage purchasers to engage expert advice.
Do review seller’s property condition disclosure form and provide it to purchaser.
Don’t just look for eco-friendly and energy efficient building features.
Green Designee Obligations
4-16
Do remind seller to comply with any duties imposed by local, state and federal laws related to environmental issues
Don’t guess, make predictions, or state opinions about green issues as if they were fact.
Leasing and Management
Property operations and maintenance
Employee and tenant satisfaction
The bottom line
4-17
Leasing and Management
4-18
In Figure 4.6, projects with greatest impact included:– Converting lighting to new generation high-efficiency
fluorescent lamps– Installing variable speed drives on all devices using
electric motor– Installing power strips that used motion detectors– Installing satellite-controlled irrigation system– Installing waterless urinals– Optimizing ventilation system– Running parking garage exhaust fans only during high-
volume periods
4-19
Employee and Tenant Satisfaction
Morale booster for employees
Support company’s social responsibility commitments
Make a statement
Help enhance employee productivity
Exercise: Case Studies
4-20
This exercise focuses on identifying various issues in working with the green buyer or tenant, as well as strategies to address them.
In groups, review the following scenarios and answer the questions that follow.
4-21
Disclosure
Start with your state’s agency requirements
Tell buyer when situation requires an expert
Disclosure responsibilities extend to green and non-green property conditions
Disclosure
4-22
If you are representing the seller, encourage him or her to disclose all material defects completely
Defects or conditions are material if buyer would consider them important in decision to purchase property
4-23
Disclosure
If you are representing buyer:– Disclose material defects of
which you are aware– Investigate any aspect of
property that buyer client identifies as important
– Don’t rely on seller’s claims
Greenwashing
4-24
Claims made without a verifiable positive effect to the environment– Exaggerating green features and
environmental benefits
– Misleading customers on benefits and value
– Stating opinions on green features as fact
– General and vague claims
Use caution and avoid greenwashing
Marketing a Green Home orBuilding
Focus on established certifications and ratings
Avoid vague descriptions
List specific features and facts
Point to benefits for all buyer types
Provide supplemental information and education
Look for opportunities
4-25
4-26
Mark of distinction
Communicates baseline expectation
Provides assurance criteria have been met and approved by independent party
Ensures holistic green home or building approach
Focus on Established Certifications and Ratings
4-27
Avoid Vague Descriptions
Generic descriptions do not effectively communicate green issues
Examples of generic descriptions include:– “Sustainable building”
– “ Environmentally friendly home”
– “ Natural materials”
– “ Safe paint and carpeting”
– “ Low utility bills”
– “ Healthy”
List Specific Features and Facts
Communicate meaningful and relevant information
Provide specific, verifiable, and quantifiable details
Examples:– Four dual-pane low-e windows
– ENERGY STAR dishwasher and refrigerator
– Solar-generated power
– No-flush urinals
– Paints and finishes with low- to no-VOC content
– Insulated exterior doors4-28
Point to Benefits for All Buyer Types
4-29
Appeal to buyer’s motivation Highlight a variety of benefits Examples:
– Batt insulation to improve comfort and maximize energy efficiency
– Features trendy organic rooftop garden
– Easy access to bike trails, public transportation, and shopping – just blocks from city center
– Non-toxic, low-VOC carpet to help improve air quality
Opportunity to help educate buyer on unique or complex features
Examples:
– Brochure with explanation and diagram
– Photographs
– Links to additional information
4-30
Provide Supplemental Info & Education
Look for Opportunities
4-31
Identify features that contribute to overall green nature
Look for “quick tip” green home staging opportunities
Examples:– Use chemical-free, vegetable, or
homemade soaps– Consider soy candles – Check for leaky faucets– Unplug appliances and chargers
Pricing a Green Home
4-32
Difficult due to lack of available data
Initial data indicate that environmentally certified (ECert) homes sell faster and for more
Source: GreenWorks Realty ECert Report, www.greenworksrealty.com.
MLS Adaptations
Many Multiple Listing Services (MLSs) are adding green search features
Allows agents to quickly sort through listing data
Some markets express concern, but overall interest in the concept
Case Study: Portland Regional Multiple Listing Service (RMLS)
4-33
Exercise: Marketing the Green Home
4-34
This exercise focuses on crafting marketing messages for green homes.
Working in groups, develop a marketing ad for the property.
Locating Service Providers
4-35
Help find qualified service providers
Connect with local green experts
Your reputation relies upon your recommendations—investigate
Examples:
– Residential Energy Services Network (RESNET) for certified energy raters, local chapters/organizations such as USGBC and NAHB, water boards
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