Going green is the best way to ease the housing market woes
By: Kerry Mitchell
All of the changes that are still being proposed for more bailout money, they are still not addressing the real estate buyer's mindset. Have you asked why a buyer is not buying? Try asking your friends and family this question. The response will be: too much for a home, taxes are too high and job security is an issue. Who wants an investment that is going south in value. Would you? The state of the real estate market is what is on the line. Ideas from real estate practitioners are what policy makers both Democrats and Republicans, need to be seeking. (And don't ask NAR, the National Association of Realtors -- they are just more policy makers.)
Ask the people in the trenches. Having completed close to 400 real estate transactions, ask me. We need to give the buyer reason to buy again. Create better local and federal tax incentives and make then visible for homeowners to renovate green. A healthier home that comes with lower utility bills and reasonable taxes is an overall better investment. Would you buy a home in this economic climate with a $600 utility bill and taxes at $3,000? That could be over $10,000 a year if your job is at risk or you feel insecure at all about the future. Talk about stress.
Sellers, builders, and renovators need to renovate and produce a product worth buying. THINK WHAT TAX INCENTIVES TO RENOVATE AND BUILD GREEN WOULD DO TO THE MARKET! Then the buyer will come. Then the value of that investment will increase again. Prices and taxes need to be adjusted, big time. Who wants a mortgage at $1100 and another $1100 in taxes and utilities? The upside is that these tactical moves by government will create a job base building a new energy sector. This will also increase small businesses aimed at these types of renovations, as well as jobs for administrative forces. My company Green Real Estate Education has established a "green leadership" certification program for under $100, offering the real estate agent a new reason to visit their clients, with good news.
This industry needs market transformation. We are educating on how a home can build real value. It is not and will never be business as usual again. We are doing this with education in the field of energy consumption. Realtors learn how they can guide clients to mortgage professionals whose companies develop programs that can help fund a home to be energy efficient, using renewable energy. That creates better value. Through our educational programs, we push the mortgage industry to offer "green funding" programs for consumers to have upgraded systems installed in their homes to save on energy costs. The real estate industry needs to know how to save money and create valid reasons to want home ownership again.
I can tell you the real estate market will not recover with just lowering interest rates, or with just a focus on another bailout. Buyers want green homes. If a consumer looks at a home today, not only can it not lose value, but it better be energy efficient. It better offer a healthier interior space.
AI
