SMC News

Monthly Article

A Riddle to solve

by Kerry Mitchell

It will always be “the” topic for social events and holiday gatherings. Sometimes it is up and sometimes down. Sometimes all wish they were involved. Sometimes those same people are grateful they did not participate. Sometimes, everyone you know is happy about their place in it all, sometimes those same friends are feeling as if the agony of their involvement will never end. Sometimes you feel like you missed the boat, sometimes you feel you are glad you never boarded the boat. Your grandmother did well in it, but these days, your friends and family have been losing money in it. In just the last 3 years, it can produce millionaires or paupers, both of whom started with the same initial funds invested. And the clincher, no one, not even the people who run the industry really know where it is all heading over the next 3-6 years. And a color can change its direction and stabilize millions invested in it. What is it?

We are of course speaking of the real estate market. What a time the past 3 years were! Sub prime mortgage markets are disintegrating because of those in the industry were granting loans without discretion. All involved were pushing to close record numbers of transactions feeling this was a gift after so much hard work in a normal market. Flooding the market at warp speed were masses of investors of whom most would go to any lengths to buy a property leaving analysts and economists baffled. Why is this? Were all feeling this was too good to be true. Guess What? It was.

The color that can put it back on a forward course for all is the new arena of “green.” 

It is because the consumer today is smarter than ever before. They see utility bills rising to new highs with no end in sight. Homeowners want to define their carbon footprint, and leave more than just money as a legacy. Global climate issues are important to them. The new world of “green” offers new opportunity to the entrepreneur spirit. Millions will be made as those who yearn to represent the products and systems people are already inquiring about for their homes and workplaces.  In addition, the savvy buyer today is demanding their real estate investment not only represent a longer more sustainable meaning a true green investment but be valued as an environmentally responsible investment. Concerns on indoor air quality is talked about more and more. Their children are in schools with recycle programs, and a curriculum on bringing these home to their parents. Recycling and concerns of escalating utility bills, and discussion of how renewable energy can power our built structures is becoming the norm around the dinner table. Once the children are involved, we automatically get involved. Do not forget it was our children who brought nicotine abuse to our attention and we quit smoking. 

According to Energy Pulse.org, 78% of the consumers who bought a property last year say no one talked to them about energy efficiency. Whether one owns now or wants to own, they are looking for ways to become more energy efficient. It should be their real estate professional who helps to guide them to local resources. It will be their handyman, their contractors, painters, carpenters who need education in this new arena. There is so much that needs to be done to educate and market these new systems and products.  Everyone needs to learn of the local resources for tax benefits, energy rater contacts and renewable energy installers and contractors in their state and local communities.

A home buyer will look to their home inspector and their mortgage professional in recommending upgrades as well and the financial resources and incentives available. Going green is the way to go, and there are so recommendations those in the real estate arena can make.

Everyone has different motivations for “going green.” Some feel we are funding our own terrorism by purchasing foreign oil. There are those who have a concern for utility bills that most feel could double in 20 years. Some want to use the natural resources that are so plentiful in their parts of the country. North Dakota and South Dakota have enough wind to power the electricity for the entire United States. Look at the solar advantages in Florida. Take note of the amount of rain Oregon gets every year. And how much parts of Georgia could use that rain.

Think green and join the new industrial revolution.