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"Green" and "Smart" Homes Present Challenges, Opportunities for REALTORS TAR HEEL REALTOR July 1, 2005 "Green" and "Smart" Homes Present Challenges, Opportunities for REALTORS®
If you think consumer enthusiasm for "green" and "smart" homes is still years away, think again. Recent industry surveys reveal a surge in new environmentally friendly and fully wired homes, which are steadily moving from niche to mainstream status.
Green Building and Greenbacks
As many as 50,000 so-called "eco-friendly" homes have been built in the United States during the past decade. While green building often means different things to different people, most consider it to include efficient use of land and energy, water conservation, improved indoor air quality and the use of recycled materials.
The escalating energy crisis in the West and ongoing drought conditions in many communities have created renewed interest in homes that maximize water and energy savings. For example, one Arizona builder will only build homes that consume 30 percent less energy than standard Model Energy Code homes. These homes have become popular with new buyers, who, while interested in the homes’ environmental benefits, are more likely looking for savings on utility bills.
In fact, in a recent survey conducted by Cathers Residential Group, 39 percent of respondents considered reduced monthly utility bills to be the biggest advantage of purchasing a green home, while 33 percent chose environmental impact as the most important consideration.
Historically, green has been a difficult sell, said Mike Carpenter, executive vice president of the N.C. Home Builders Association. Homebuyers have traditionally thought bottom line; they tended to ignore green features despite a certain payback over time.
"There has been a segment (of the market) interested in energy efficiency ... but clearly it was a minority," he said. "I think that is changing. Now saving energy can be a major selling point."
The challenge is to grow with the marketplace and accept new technology.
"Successful builders and REALTORS® have always understood what the market wanted and put themselves in the position to deliver it," he said.
Smart Homes on the Horizon
Another trend that is starting to catch on with homebuyers is the "wired" home, which is controlled by a network of computers connected to the Internet. In the "smart" house of the future, homeowners will be able to do a multitude of tasks, such as adjust the thermostat or turn on the oven, all without leaving their office.
Home automation isn’t new, but the exploding use of the Internet is taking the concept to new heights. Insiders say many of the players are ready to put out products — "thinking" refrigerators, "smart" ovens and robot vacuum cleaners — in the next two to three years. The problem however, is there aren’t many people around yet who are smart enough to sell smart houses.
"Real estate associates needn’t be automation experts to sell homes in the future," said Charles McGrath of the Home Automation Association. "But they can start learning about these products and related technologies."
Mark Tipton, a Raleigh homebuilder and former NAHB president, is chairman and CEO of Smart House Inc., which installs and services home automation systems. Initially limited to high-end homes, smart features now are being demanded by first-time buyers who expect a pre-wired home ready for security systems, high-speed Internet access and other technology.
Tipton says these young buyers have become conditioned to technology. Installed during construction, a typical structured wiring system costs about $1,000 for a 1,500 square foot home and about $2,500 for homes with 3,000 square feet.
Building environmentally sensitive homes equipped with the latest technology is a special focus at Cary-based Rufty Custom Built Homes. Four years ago, President Jon Rufty joined with about 30 manufacturers and public agencies, including the Environmental Protection Agency and the American Lung Association, to build a "healthy house" with less indoor air pollution. Newer, energy-efficient homes tend to be so airtight, they risk higher levels of indoor pollution than older, drafty ones.
Now Rufty is working with the Federal Emergency Management Agency to construct a disaster resistant, all-concrete duplex half a mile from the Governor’s Mansion in Raleigh.
"We take a lot of pride in looking for ways to build better homes," he said. "In the past, smart homes were a technology in search of an application. That’s changing."
For REALTORS®, the trend toward greener and smarter homes challenges them to change their perspective. Instead of looking outside the home at the neighborhood, schools and shopping, they need to better promote what’s inside and point out how recent advances enhance a home-buyer’s lifestyle.
"There’s a tremendous opportunity out there," Tipton said. "REALTORS® don’t have to be technology gurus, but they have to understand that homes need to get wired for the future and the competitive nature of the industry means they have to be prepared for technology. Agents are not going to know how every wired home works, but they are going to have to know experts who do."
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