Applications for building permits have slowed down, some projects have been tosssed, and interest rates are inching higher. Homes sales will be ugly, to use the headline of one news article. All the while, real estate agents are scampering, trying to drum up business and continue the high life. I’m not a real estate agent, but from what I understand, the good ones make real good money and the bad ones make good money, so it hasn’t been that bad of a market…until, the Fed started to cool things off. Enter: EcoBrokers, GreenHomesForSale.com, and differentiation.
I noticed two articles on the same day about EcoBrokers, one on USGBC website and the other on MarketWatch. Becoming an Ecobroker means differentiating yourself from hundreds of other run-of-the-mill real estate agents, and it’s smart business. According to the National Association of Home Builders, the 2005 green building market ($7.4 Billion) is expected to reach from $19 to $38 billion by 2010. The tipping point, or the point where more green homes are built than non-green homes, is supposed to be in around 2007.
According to the MarketWatch article, buyers are interested more in the energy-saving, cost-cutting, sustainable features than the "save the earth" rhetoric (go figure!). And while features can vary from home to home (read: there will be a green standards war just like the current standards war between HD-DVD and Blu-Ray), these EcoBrokers are going to have a leg up in explaining to purchasers and sellers the best ways to market homes. Certification for EcoBrokers will cover topics such as energy-efficiency ratings, asbestos, VOCs and lead paint, and indoor air quality.
Even more interesting, at the website, www.ecobroker.com, there is a designation guarantee that says the following: "Earn the EcoBroker designation, and apply the marketing and sales skills you learn. During the first year of your designation, you will increase your personal commission income, or we will refund 100% of your designation fee." From what I understand, the costs are $395, so that should be money well spent. The market is heading that direction (as the NAHB quote urges), so it’s smart to get in early.
Another website is www.greenhomesforsale.com. I like the concept; it’s kind of a DIY-type place, and looks like it can be an attractive place for home listing as the listings increase. I looked at some of the listings and they can hardly be considered green (McKinney, Texas home), but it’s a good start. I found a prefab in Hawaii, that I know I’m gonna dream about tonight–if only money was sustainable on my backyard tree!
What I don’t understand about this website, however, is why they don’t invest some money in design and get rid of all those convoluted google ads, etc., sticking up all over the place like a bunch of weeds. It’s hard to take a website serious with all those cheap pay-per-click ads all over the place…my recommendation: pick a strategy for cash generation and stick with it–drive that strategy home. Looks like it costs about $60 to list for 3 months, so stick it out while your making your way down the long tail of sales.
Overall, I digg the future of what’s going on in the green real estate industry. It would be a smart move for real estate agents to get on this and learn the jargon. As the demand for green homes increase, those that can’t speak the jargon will be left trying to catch up. And might I suggest, as a parting note, since buyers are interested in the cost-benefits of green, the jargon includes being able to calculate payback periods, breakevens, inflation, and discounted cash flows, etc.