
'EcoBrokers'
Bump Up
Against Slowing Market
And a Shortage of Homes
May 23,
2007;
Some real-estate
brokers are beginning to tout their
environment-friendly credentials to get an
edge in a slowing housing market. But the
brokers are discovering that selling green
is harder than talking about it.
Living in homes boasting solar panels and other
energy-saving additions is becoming more
mainstream, but brokers must still convince
developers and buyers that green features are
worth the added cost. And even if clients are
eager to buy, there is a shortage of properties
offering the features.
More than 1,000 agents have taken a $395 course
offered by a former U.S. Department of Energy
official on the basics of what makes a house
green -- one that conserves energy and is close
to public transportation, for example. After
taking the course, they then can advertise
themselves as "EcoBrokers" on their business
cards and Web sites. Though that's a tiny 0.3%
of all U.S. real-estate professionals, similar
initiatives are popping up to raise awareness
and take advantage of wider public acceptance of
issues such as global warming and growing
concern about higher energy costs.
In
North Carolina, the Home Builders Association of
Durham, Orange and Chatham Counties has started
a program to educate members about the
advantages of green building features, including
energy-efficient appliances or paint that emits
fewer chemicals.
This year, Moss Real Estate Group started
marketing itself as "New York's first green
brokerage." Chief Executive Chris Moss says he
didn't advertise his company as eco-friendly
earlier, even though it has been using wind
power and donating 1% of gross revenue to
environmental charities for four years. The
reason for his hesitation: worry that people
would think he was more interested in "hugging
trees" than closing a deal.
The
added point of differentiation can help a
Realtor's chances of making a sale, says Kirk
Fox, a Prudential agent in Chicago who in 2005
was one of the first to add the EcoBroker
designation. "When I first talked to people, it
was about their energy bills," says Mr. Fox, who
is working with two buyers who recently
contacted him because of his designation. "But
now it's really about their lifestyle; they eat
at Whole Foods and drive a Prius," Toyota's
hybrid vehicle.
The
EcoBroker label was conceived by John Beldock,
director of environmental analysis for the
Department of Energy for three years until 1992.
In addition to the course -- taken online by
most agents -- his Evergreen, Colo.-based
EcoBroker International is recruiting
real-estate companies to become EcoBroker
affiliates, which will identify them as sponsors
of the initiative for an annual fee of $500 to
$1,000. The company is close to breaking even,
says Mr. Beldock.
Georgette Chapman Phillips, chair of the
real-estate department at the University of
Pennsylvania's Wharton School, says green
credentials are a "selling point, just as much
as the pool and the garage." She says brokers
may not need to be certified to promote
eco-friendly houses. "This is more common sense
than scientific learning," she says. Mr. Beldock
equates the certification to a degree: "That's
like saying NYU and Cornell aren't necessary and
you can get all your English and psychology
training on the Internet."
Brokers who have received the designation say
they hope it will help win attention in a
competitive home-selling industry. "It may cost
me like a percentage point more to add the green
features, but the extra marketing bang I'm going
to get...is worth it," says Shaughn White, an
EcoBroker in Washington D.C. since last
December. "The buzz [about environmental
concerns] is out of control and there's a bunch
of Realtors sitting around in D.C. saying, 'How
can I capitalize on this?' "Overall costs for
new green construction vary based on the type
and amount of green features, but are typically
about 2% higher than conventional buildings,
according to cost-benefit studies by Capital E,
a Washington-based energy-efficiency consultant.
Outfitting a home with solar panels usually
costs between $35,000 and $40,000, according to
the Department of Energy. There are rebates and
tax credits to offset that cost, though
producing energy from solar panels still costs
at least twice as much as using fossil fuels.
Susan Singer says her EcoBroker
designation puts her "ahead of the curve in a
good way, and kind of in a bad way." Good
because Ms. Singer, a Corcoran Group agent in
Manhattan, says she now knows more about green
real estate and how to sell it, but bad because
there's not a lot to sell. "My work right now is
really educating developers," says Ms. Singer.
Housing starts that meet prescribed efficiency
standards accounted for $1.8 billion, or 0.3% of
total starts in 2005, according to a study by
McGraw-Hill Construction. It projects those
starts will increase to $20 billion, or between
2% and 5% of the market, by 2010.
Some brokers are initiating projects or
collaborating with builders and investors. Anne
Ward, a broker in Santa Fe, N.M., is working on
several green projects with real-estate
developers. She helped Ed Brown, a 65-year-old
U.S. Defense Department retiree, design a custom
home in Santa Fe with solar technology, a
water-harvesting system and energy-efficient air
conditioning. "One of the big motivations is
saving energy as well as water, because we're
high-plains desert here and water is not at a
premium," says Mr. Brown, who plans to move into
the $499,000 home in July.
Mr.
Brown isn't ready to go all green. He opted for
a nonhybrid Toyota Highlander sport-utility
vehicle, because the hybrid model cost $7,000