Going Green: How will it ease the Housing Market Crisis?

Energy Efficiency and Green Building Offer New Hope for Real Estate

going-green-building

There are many changes that are being proposed that are still not addressing the buyer’s mindset.

The question still remains: In this current buyer’s market with low interest rates, why aren’t more people buying homes?

The responses usually are: too much for a home, taxes are too high and job security is an issue. Buyers don’t want 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 – the homeowners, the buyers and the real estate professionals that work with them.

We need to give the buyer reason to buy again. Create better local and federal tax incentives 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 with a $600 utility bill and taxes at $3,000 – $8,000 a year if your job is at risk or you feel insecure?

Sellers, builders, and renovators need to renovate and produce a product worth buying.

THINK WHAT TAX INCENTIVES TO RENOVATE AND BUILDING 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. The 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.

We need to 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 the $700 billion 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.

Original article by Kerry Mitchell.


Share the wealth: Bookmark and Share

Advertisements

One response to this post.

  1. i think people are just in a holding pattern right now, trying to save money and lean of ways to keep the money they have. times are rough so I do not think anyone is looking for anything dramatic.

    basically, if u have it, youre trying to keep it. If you dont have it, you cant get it.

    Least that is what I have been seeing and reading in my travels

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: