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Green Resources > Green Industry Articles > Understanding Your Green Client

Understanding your Green Client

by the Green REsource Council, National Association of REALTORS®

As the topics of sustainability and green building continue to gain momentum, clients and customers interested in green features and amenities will become more and more common. But who is the green buyer, tenant, owner or seller? And how can you determine what green means to them?

As with any real estate transaction, the green buyer, tenant, owner, or seller is motivated by a variety of different factors and preferences. However, we can categorize these individuals into one of the following general types:

Economizers:

• Those who are interested in saving on operating costs through resource management.
• Example: Baby boomers who have experience tracking monthly energy and utility costs over time may think that a green home is the best way to control increasing costs and manage their budget. Likewise, commercial tenants may think that green office space is the best way to control their operating costs and their portion of common area maintenance charges.

Investors:

• Individuals interested in life-cycle cost analysis and the value proposition of various green features.
• Example: Someone looking to remodel or retrofit existing homes and buildings with green features in order to ultimately command a higher asking price.

Health Conscious:

• Those who believe that potential health benefits of green living.
• Example: Someone who is has allergies may think that a green home or building will help prevent allergic reactions and improve overall health. Similarly, commercial tenants may think that a green building will increase worker productivity due to better lighting and indoor air quality.

Idealists:

• Those who believe that conservation of resources for future generations is a social responsibility.
• Individuals truly committed to and passionate about green.
• Individuals willing to sacrifice for green lifestyle choices.
• Example: Someone who is interested in minimizing his or her carbon footprint by living or working in a green building, collecting rainwater for landscaping irrigation, shopping locally or growing their own food, and so forth. Similarly, commercial tenants may be interested in finding office space with other businesses that contribute positively to the community and the environment, and share similar mission statements.

Lifestyle-Focused:

• Those who think that living by overall sustainability principles contributes to a more meaningful and comfortable personal lifestyle.
• Individuals supportive of living a green lifestyle.
• Example: Someone who considers close proximity to public transportation or living by open space a priority in terms of personal home choice. Likewise, commercial owners and tenants who are interested in providing bike storage and shower rooms as a way to encourage employees to bike to work may also fall into this category.

Eco-Chic:

• Those who are interested in the status and prestige of green living.
• Individuals who may not truly subscribe to a green philosophy but are interested in being involved or owning the latest green feature or gadget.
• Example: Someone who values the idea of living in a green certified home or building more than the unique green features and associated environmental or sustainable benefits.

Skeptical/Unaware:

• Those who are skeptical of the green hype or are unaware of the benefits of green homes and buildings.
• Example: Someone who is not aware of or is uninterested in the options and potential benefits of pursuing a green home or building. As you can see, the green choice is not a one-size-fits-all approach. Some clients and customers may not fit neatly into any one category, but rather encompass characteristics of several. The real estate professional’s task is to learn these motivations and prioritize them as “needs and wants.”

As a real estate professional, your goal is to help clients or customers find a home or building based upon their preferences. New and custom-built homes and buildings have the advantage of being able to incorporate green features into the design and construction. However, if your clients are looking at existing houses and buildings, some aspects of a structure cannot be changed, such as its site orientation. However, the real estate professional can help a buyer or tenant see the green potential of a home or building by pointing out ways to decrease a property’s negative impact on the environment, and suggesting upgrades and fixes that will increase resource efficiency. These upgrades and features can range in cost depending on how committed your client is to having a green property.

Is your client interested in low-cost upgrades and features? Try suggesting the following: Use CFL or LED light bulbs; Install low-flow showerheads and faucet aerators; Start a compost pile; Plant trees; Insulate hot water heater; Weather-strip and caulk doors and windows; Collect rainwater to water plants; Paint with low- or no-VOC paint; Replace filters; Install a programmable thermostat; Plant a rain garden; Plant native plants; Install motion sensors in offices and other common areas to turn off lights when not in use; Install water-efficient restroom fixtures; Take advantage of daylighting; Provide recycling bins.

Perhaps your client is willing to invest more in these medium-cost upgrades and features: Conduct an energy audit; Tune up HVAC; Replace carpet with no-VOC style; Install a tankless hot water heater; Insulate attic and other areas; Consider drought-resistant landscaping; Install engineered window shading to manage heat loss or gain in commercial buildings; Buy recycled office products and equipment; Hire a consultant to conduct an assessment of lighting and heating and cooling systems for potential building upgrades and retrofits; Provide a bike room to encourage environmentally-friendly commuting.

Is your client willing to invest more in these high-cost features? Try encouraging the following: Buy ENERGY STAR appliances; Replace windows with double pane, low-e models; Replace roof with reusable/recyclable materials; Install solar photovoltaic panels; Remodel kitchen or bathroom with sustainable materials and features; Replace cabinets with sustainably harvested wood and low-VOC finishes; Install a solar hot water heater; Install a green roof; Implement super energy efficient transformers; Use wind turbine systems to supplement common area electricity; Implement a water reclamation system; Consider anaerobic digesters that use food waste and solid human waste to produce methane and generate power.

Don’t forget to conduct some research! Become familiar with listings and note potential features or opportunities for green improvements, review potential pros and cons from a green perspective, talk to the listing agent or builder, and always consult with green building experts.

When you’ve gathered the appropriate information, prioritize showings to focus on your client’s high-priority features and factors, use checklists to find all potential features, offer observations, and most of all, ask questions! Get feedback from each showing, ask specifically about certain features, and gauge the reactions and priorities of your clients. For example, it would be prudent to ask if they are comfortable with the age of the appliances, the property’s proximity to public transportation, the amount of information on the property’s green features, or if they’d like an energy audit.

Understanding the latest features, technology, and development in green real estate will afford you a unique perspective into the needs of this rapidly growing client base. Finally, be the source of the source; develop your relationships with green industry professionals and bring those relationships to your clients.