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5 Ways to Create New Green Revenue Streams
8 Tips for Successful Green Home Tours
Stage Your Town
Appraisal Addendum Has Potential to Change Green Housing Landscape
Associations Aid Rising Green Tide
This Month's Tips
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5 Ways to Create New Revenue Streams
Listing and marketing property doesn't have to be the only way to use your green expertise to advance your career.
Consider these five ways to spin your knowledge into side gigs (some that could provide revenue streams) and create fresh opportunities.
1. Hire yourself out
Beverly Hanson, GREEN, of SLC Green Homes in Salt Lake City, Utah, has parlayed her green knowledge into a new side job as a home energy consultant for a local energy efficiency contracting company that is a franchise of Green Homes America.
She helps homeowners to assess their properties' efficiency deficits and makes recommendations for upgrades. She also explains the results of energy audits, the resulting recommendations, and helps them to prioritize upgrade projects. Then she walks them through the rebate and tax incentive paperwork.
The work dovetails perfectly with her real estate business. For one, she relies on the same skill set, such as generating leads, selling, and consulting and advising homeowners. Her networking circle has provided leads and ongoing education.
Moreover, her real estate knowledge gives her a credibility boost when she talks about the added value that upgrades will have when homeowners eventually sell the property.
Part of the success with such consulting stems from constantly reading, learning and networking. That quest for knowledge about new building science and staying up to the minute on all financial incentives are absolute musts, she says.
"In tough times, I see so many real estate practitioners take side jobs at places like Starbucks to supplement their income." But, she asks, why not choose a sideline that is a better fit with your skills that will help you build your business down the line? After all, the homeowners Hansen helps with energy upgrades today could be tomorrow's real estate client.
She suggests assessing your skills, researching local companies that do energy upgrades, and putting together a proposal and pitching your services to such firms.
After all, Hansen sees a bright future for the sustainability industry and believes that her consulting work is preparing her for it.
She says she embraces hockey great Wayne Gretzky's quote, "I skate to where the puck is going to be, not where it has been."
By being steeped in green, Hansen is skating to the puck.
2. Green events
Organize green events, whether they're green home tours (for more on successful home tours, see "8 Tips for Successful Green Home Tours" in this issue) or expos.
David Kelman, GRI, GREEN, a practitioner with Century 21 Portman, has developed a wide network of green professionals around Boston, including architects, general contractors, and energy auditors. He's tapped that circle to organize a green home fair scheduled for late January 2012. It will feature information booths and education sessions on green housing and provide a venue for participants and local businesses to connect.
And Kim Mulligan, GREEN, Built Green Professional (a local green designation), EcoBroker and a real estate practitioner with Cooper Jacobs Real Estate, Seattle, was involved in planning a 30-home tour for the Northwest EcoBuilding Guild last year. She's doing the same for the 2012 tour, which will include an expo where homeowners will find hands-on demos and ed sessions. There, Mulligan will be giving short talks about green financing.
She points out that though such tours rely heavily on volunteer labor, the planning can get complex. One possible scenario: market yourself to building groups and others and offer to take the planning and logistics off their plates. For a fee.
3. Build loyalty
Kelman finds more and more first-time buyers and downsizers seeking his advice about green upgrades and energy efficient home choices. In his Boston market, the housing stock is rife with homes built between 1890 and 1960 that make great candidates for green upgrades.
He's done numerous walk-throughs with prospects to point to ways that a given house could be made more green and less costly to operate.
He also advises them on the latest rebates and tax incentives available to finance those changes and then refers them to qualified service providers and contractors.
Though he doesn't charge for such consulting, he could. So could you.
Kelman views the consulting services as a way to catch and keep more clients, especially since the age-old real estate challenge of getting clients to commit to you is still very much in play. "The value-added that I provide buys me loyalty among these clients," he comments.
4. Consult with builders
Mulligan helped a builder who was constructing a green home to slash his building costs by $10,000. She analyzed who potential buyers would be and made some key green recommendations based on what she knows about their motivations.
For one, the builder was going to install a pricey solar energy system. Mulligan pointed out that not every buyer wants that. So instead, he put in the infrastructure to allow a future installation.
Mulligan recognized the beautiful job he'd done laying the kitchen's concrete and pointed out that concrete floors are often a sought-after design element. Mulligan's question: "Instead of tiling the kitchen, why not just seal the concrete?"
He did.
In addition, cork floors in bedrooms would be a greater turn-on, she advised, than cheap carpet that also could be a source of off-gassing.
Finally, the builder was planning to install low-flow toilets until Mulligan suggested dual flush models would be more appealing to prospects.
He'd thought they were prohibitively expensive until Mulligan pointed out prices on the fixtures had declined.
No, Mulligan didn't charge for the consultation. "It was good will on my part," she comments. She also sees it as a way raise her visibility and promote her green expertise.
Yet such advisory services could be packaged and sold to builders looking for advice on ways to hit the right green tone.
5. Speak and educate
Kelman is involved in his local chapter of USGBC, participates in the National Association of the Remodeling Industry (NARI) events, and serves as chair of the Boston Society of Architects' housing committee. As a result, he's been invited to give lectures on real estate and green topics.
He doesn't receive direct compensation for his services, but he often gets free admission to events, conferences, and education sessions, which has value to him. It also allows him to tweak the content of speeches and buff up his public speaking skills. That's something especially helpful, given that he's considering chasing some paid speaking gigs in front of Boston civic groups and clubs during 2012.
8 Tips for Successful Green Home Tours
Home buyers want to see, touch, and smell what they've read about green. That's according to Steven Lefler, vice president of Modular Lifestyles, Inc., Irvine, Calif. His company specializes in building energy efficient modular properties.
Green tours are an ideal way to provide that sense of green homes and give prospective homeowners some firsthand green education.
"They're a great way to show people that these houses are warm and livable, and for them to see the green systems and materials," comments Kim Mulligan, GREEN, Built Green Professional (a local green designation), EcoBroker, with Cooper Jacobs Real Estate, Seattle. She helped to plan the Northwest EcoBuilding Guild's 30-property green home tour last year and she's working on the 2012 tour.
But orchestrating a tour takes some footwork. Here are eight ways to make your planning successful.
1. Early planning
-Identify properties for the tour. Create a mix of properties to address the broadest audience possible. For example, the mix could include new construction, retrofitted historic properties, and houses that are under construction.
-Budget. Will you recruit sponsors? Will you charge participants who are showing properties? Will you charge visitors?
Tip: See if you can recruit green-related local businesses to participate. Lefler likes having a Nissan Leaf at properties during green tours. For one, the cars give people a fuller picture of how they can be efficient. And he says that car dealers are always excited about the exposure. Lefler’s company's homes have been part of the Ojai Valley Green Coalition Green Home & Building Tour and Home Show.
-Staffing. Figure out the players and educators for your tour day, and recruit and train greeters and other volunteers.
-Information. Decide on the educational materials, brochures, home descriptions, maps, and so forth, that you'll need to produce. Hailey McGowin, GREEN, a practitioner with Intracoastal Realty, Oak Island, N.C., points out that it's important for the focus to be on green education and benefits and that tours help to dispel misconceptions about green features and systems.
2. Promote
Prepare your marketing strategy, including plans for press releases, community outreach, invitations, advertising, radio and TV appearances, and social media.
Tip: McGowin says it's important to establish and maintain relationships with media types from print, radio and TV. "If they know you, they're more likely to show up or do a story about your tour," she says.
McGowin also says that she's found the promise of free food tends to be a huge draw for attendees. Be certain that advertising and road signage on the day of the event features the food lure.
3. Transportation
Decide how people will get from house to house. Will you offer bus service? Will it be a self-guided tour?
Tip: If you're in a city, encourage bikers to ride from property to property.
4. Develop materials and handouts
Each house and its green features should be described, along with the benefits, cost savings, and the reasoning behind each green choice.
Tip: Not everyone wants paper-based materials. Be certain that maps and information are accessible on all portable devices, whether it's a Blackberry or an iPad.
5. Use educational placards
Include signage in key spots around the house that name and explain green features. Mulligan says if it's a countertop you're showcasing, for example, the placards should identify and explain its green features, the materials used, and the name of the product. If it's a system, the card also should address its key benefits, such as annual cost savings.
Tip: Scan houses to be sure that everything is in place for attendees to do self-guided tours. Consider how museums pack their signage with easy-to-digest details. Consider following suit.
6. Timing
A season with mild weather would seem ideal for a green tour, but McGowin points out that the performance of building systems, such as HVAC and insulation, might be best showcased during the harsh, cold days of winter or on a sweltering summer afternoon.
7. Education
Be certain there's someone at each house who can demo and explain--in laymen's terms--the green systems and features that you're highlighting.
Tip: Lefler says that having utility bills on hand is a great way to illustrate a green home's lower operating costs. Even better is when a homeowner is on hand to vouch for the house's comfort and cost benefits.
8. Protect yourself
Check with an attorney to see if you'll need insurance waivers to protect the organizers, homeowners, and other participants from liability if, for instance, someone gets injured during a tour. Also find out how to protect yourselves if a homeowners' property gets damaged or stolen.
Tip: As you would for any open house, remind homeowners to lock up jewelry, valuables, medicines, and so forth, suggests McGowin.
Stage Your Town
You stage your listings to best showcase their assets. Why not do it for your town too?
America in Bloom (AIB) just might be the ideal initiative if you're looking to put your town's best foot forward and spearhead a community service project that packs a punch.
The 11-year-old program, structured as a contest, helps to beautify the country one community at a time. AIB promotes the use of trees, plants, flowers, and other environmental improvements as urban renewal catalysts.
Beauty in a box
Though each community identifies its own projects and relies on its own army of local volunteers to accomplish the tasks, AIB offers something of a turnkey approach--providing education, consulting, and resources--to help towns plan projects and attain their goals.
Among those resources are Webinars, a book, and an array of presentations, and press and promotional materials that can be tailored to local needs.
In addition, AIB judges make two-day visits to participating towns to rate the communities' work in several categories, including floral displays, landscaped areas, and environmental efforts.
A way around budget cuts
Particularly given that municipalities are slashing budgets, the AIB approach really is one way for towns to gain an economic and aesthetic boost on something of a shoestring budget.
Though there's an entry fee (many towns find that businesses or professional groups are happy to pick up that cost), Evelyn Alemanni, America in Bloom international judge and board member, author of "Ten Years of Best Ideas," says that the program brings benefits that carry on well past the initial contest.
For one, you end up with an overhaul of the landscape and aesthetics. And because AIB judges offer consulting and mentoring and provide detailed written evaluations and recommendations, you gain new insight on how to capitalize on what you've already done.
"If you hired consultants to do the evaluation and write a report, it'd probably cost $20,000 to $30,000," comments Alemanni. "So you really get a lot of value."
The AIB program works well for cities of all sizes. Past winners have included small towns and cities - like Echo, Oregon and Bloomington, Indiana - to big cities like Chicago.
Deeper community roots
The obvious benefits are towns that emerge with prettier, healthier environments. There's also the potential economic boost that results from a community becoming more desirable to tourists and for businesses and people looking to relocate.
But there are other more subtle advantages. One is the oft-discussed, rarely achieved notion of civic engagement.
AIB motivates people to get out in their neighborhoods to volunteer, which connects them with each other. The result is that sometimes elusive concept of collective community pride.
Army for good
And the level of volunteer commitment can be stunning. Residents in Logan, Ohio gave 100,00 volunteer hours, and 438 participants from the Retired and Senior Volunteer Program logged in 81,873 hours for Bloomington's effort.
"This program really did make us all take a look around and inside, and figure out how to improve the community and peoples’ lives," comments Brian Thompson, CRS, GRI, SRES®, managing broker, FC Tucker/Bloomington REALTORS® and 2012 president of the Bloomington Board of REALTORS®. He was instrumental in launching Bloomington's AIB program in 2010.
"It created a sense of 'pay it forward' and that you could count on others in the neighborhood," he adds.
For example, some people would stop by neighbors' houses to clean up the yard and do weeding. There was no formal request for the help and no payment. Volunteers spotted a need and just showed up.
Others purchased flower baskets, specially developed in town for the contest, for neighbors who couldn't afford to buy one.
Bloomington's AIB effort was rewarded with top honors in all judging categories.
Long-term advantages
And the AIB projects often just continue on.
During the Bloomington contest, for instance, a boys and girls club took care of cleaning up graffiti. Today, club members just keep doing that clean-up.
"It brings businesses, people, and government together, and when you get those three sectors working together you have a very powerful mix," comments Alemanni.
Business side benefits
And the program seems almost tailor-made for green real estate practitioners looking for a community service project that incorporates sustainability principles.
"It's a natural fit because it beautifies the town, raises home values, and creates a sense of community," says Thompson.
And, of course, it creates new connections.
"I met people I never would have met," Thompson recalls. Relationships naturally evolved by working side-by-side on committees or hands-on garden projects. And the commitment Thompson made to the effort brought him new business without him having to sell at all. "The conversation just evolves naturally as people chat about what they do," Thompson comments. "Suddenly someone says, 'I have a friend moving here who needs a house.'"
RESOURCES:
-Deadline: If you're interested in entering this year's competition, don't wait. The deadline is February 28, 2012.
-Inspiration: Several videos illustrate the impact the program has had on individual communities. And "Ten Years of Best Ideas" is a book that offers examples of other communities' successes.
-Full details: Visit www.americainbloom.org for everything needed--registration, information, tools, inspiration, and so forth--to launch a program.
Appraisal Addendum Has Potential to Change Green Housing Landscape
The Residential Green and Energy Efficient Addendum, released by the Appraisal Institute, could change the green housing landscape.
Real estate practitioners have long recognized that one missing link in their green efforts was appraisals that documented and valued green home features.
Practitioners could push green upgrades, and homeowners could install all sorts of green whistles and bells, but if appraisers don’t recognize the value of those features, homeowners don’t get credit for such work.
That made efficiency upgrades less compelling, given that many homeowners are still driven by dollars and cents. They asked, "Why spend money on upgrades when I'm not going to get any financial benefit from them?"
A new day
The addendum is a quick-to-fill out, easy-to-understand form that appraisers can use when valuing homes with green features.
"It opens the eyes not only of the public, but of professionals as to how different a green home is compared to a code-built home," comments Sandy Adomatis, of Adomatis Appraisal Service in Punta Gorda, Fla. She was instrumental in spearheading and designing the addendum, and has been actively promoting green concepts in the appraisal industry.
Adomatis and Sue Bechtel, GREEN, of Iowa Realty in Des Moines, Iowa, teamed up to discuss the Residential Green and Energy Efficient Addendum and its uses during the January 2012 Webinar.
Key categories
Adomatis said that one objective for the addendum was to give appraisers a checklist they could run through quickly when inspecting a green home.
Categories addressed in the form are:
• Insulation
• Water efficiency
• Windows
• Day lighting
• Appliances
• HVAC
• Energy Rating
• HERS information
• Utility Costs
• Energy Audit
In addition, a section for comments lets appraisers make notes about green features and findings.
Adomatis believes that the sections on energy and HERS pack the most punch. The HERS rating, for instance, is quantifiable and it's verified by a third party.
As for energy, says Adomatis, "That's area where an appraiser can actually measure values and differences in a home." It's something she believes buyers will pay attention to, especially when they're making apples-to-apples comparisons of houses and they see that one has $95 monthly utility bills and the other has $200 bills.
Power tool
And she says that such cost distinctions could be an especially valuable marketing tool for real estate practitioners.
Bechtel agrees and says, "It will be very powerful when sellers start seeing it, and that should push appraisers to get with the program."
She envisions leveraging the addendum during listing presentations. It can be especially potent among homeowners who don't even know the addendum exists. "You can impress them by putting it in front of them, if you think the home qualifies," comments Bechtel.
Delivering legitimate comps
The addendum will become even more valuable, believes Adomatis, once the market starts demanding green features and when MLSs feature a wealth of green data showing the discernible value for those green upgrades.
"Having this form and the green MLS working hand in hand will begin to move this data to the forefront that we can readily pull and analyze," comments Adomatis.
For now, there's a need for education and a push to gather green data and disseminate it properly. "It's going to take real estate practitioners pushing lenders and lenders pushing appraisers," says Adomatis.
3 Steps
Here are three things to keep in mind when advancing the addendum.
1. Request a competent appraiser, who has had green education, suggests Adomatis. Fill out the green addendum and take it to the lender so he or she sees that they're dealing with a different home.
2. Hand the addendum to appraisers during inspections. Quiz them about their green education and knowledge to be certain they're competent to evaluate green home features.
3. Understand all the terms used on the form, recommends Bechtel. She also says it's important to be current on incentives because they change so frequently.
Associations Aid Rising Green Tide
A commitment to green often starts at the grassroots level.
But a real estate association really has the power to advance that movement by placing a spotlight on green education and sustainable practices.
That's just one way in which the New York State Association of REALTORS® (NYSAR) excels. It won a 2011 Evergreen award from NAR’s Green REsource Council for its commitment to green principles.
NYSAR illustrates well how associations can adopt green values.
Given that resources are tight and members expect their professional association to be judicious with finances, NYSAR took a close look at ways sustainability practices could keep costs in check. “We need to make the most of what we have," comments Priscilla Toth, NYSAR's director of education.
NYSAR is situated in an historic Albany building that it owns, so it did an energy audit and identified projects that would cut consumption and save money.
It replaced all the building's fluorescent light fixtures with energy efficient ones and also installed motion sensors in some parts of the building.
In addition, a window upgrade, a new air conditioning condenser, and new thermostats and computerized monitoring all contribute to lower operating costs.
And it's not just the physical structure that has undergone changes. NYSAR has made incremental changes in its practices too. Rather than receiving printed material during classes, registrants now can opt to download materials. In a similar vein, business meeting agendas are all sent electronically.
And within the office, there's a push for staff members to rely on mugs, glasses and cloth dish towels, rather than disposables. A planned migration to cloud computing this year is expected to save NYSAR $800 in annual electricity costs.
Need-to-know information
NYSAR also has delivered green education to members since the inception of the GRC in 2009. That year, for instance, it offered six sets of GRC classes to members.
Toth acknowledges that getting full-blown, widespread passion about sustainability can be a slow slog for associations. NYSAR isn't exempt from that challenge.
For one, Marilyn Urso, GREEN, e-PRO® observes that the notion of "How will this help me sell a house today" is still prevalent when it comes to green education. Yet both she and Toth see pockets of interest, particularly among younger professionals, and that inroads are being made. "It's becoming something the real estate practitioner has to know about," says Urso, broker/owner Long Island Village Realty in Syosset, N.Y., and an instructor for NAR’s Green Designation and NYSAR's green courses.
NYSAR continues encouraging members to get in step with green, particularly since it believes in the long-term benefits of housing sustainability.
Toth suggests that the adoption of green MLS fields, greater awareness of and demand for efficiency among consumers, and wider acceptance of climate change could all fuel a deeper appetite for green education.
In the meantime, with 15 green classes being offered this year, NYSAR stands by its commitment to deliver that knowledge to its members.
Sneak in the Green Message
Another 2011 Evergreen winner, Bill Costley, GREEN, knows something about delivering green education. He says green permeates all aspects of his life.
The former high school science teacher reinvented his career and became the director of education for the Traverse Area Association of REALTORS® (TAAR).
In that role, he's pursued his passion for sustainability and has developed and teaches NAR’s Green Designation classes. For a full profile about Costley, who accepted the Evergreen award for TAAR in 2010, see "Instilling a Love of Nature".
Here, he provides ways to make green education a centerpiece of real estate associations and offers his methods for creating compelling classes.
1. First-hand knowledge: Students often seek real-world examples from educators about the green methods being taught in the classroom. Costley can give firsthand accounts of the benefits of green home choices because he's built his own green property. He also talks about the renovations the TAAR office underwent, including window changes last year. The changes have saved the association 40 percent in energy costs.
2. Don't bore 'em: You could drone on in the dark during classes or take a page from Costley. He infuses his classroom with excitement by incorporating hands-on demos. Instead of just talking about infrared cameras and blower door tests, guest experts bring the gear to the class and show students how they operate in the field. Seeing the tools in action help students to really understand the tests auditors do in the field. Then they can better explain the process to clients.
3. Keep green in the forefront: Costley includes green information, tips, and benefits in every monthly newsletter he puts out. And when there's an interesting story in the GRC newsletter or in other magazines, he provides a link. It's an aim to keep Green Designees informed and to nudge others to get their designation.
4. Cross promotion: No matter what class Costley is teaching, whether it's generational marketing or technology, he slips in a plug for the benefits of green practices and green education.
5. Build wider connections: TAAR shares its knowledge and green practices with other associations looking to get up to speed on green. Costley, for instance, travels around Michigan to teach green classes for other associations. Having EOs and staff sharing the green knowledge and message with others can only help to expand the green housing movement.
6. Subliminal messages: If you're looking to invigorate green education and awareness in your association, sure, make a formal presentation and proposal. But also create opportunities for conversation. "When you push, people push back," observes Costley. "My approach is non-invasive and subliminal."
Costley frequently rides a motorcycle to work and that becomes a conversation starter. He can talk about how riding the bike has a lower environmental impact than, say, an SUV and address why it's important.
He also wears his GRC pin everywhere he goes. If people ask about it, it's his chance to chat them up about green real estate and sustainable living. Again, it's a subtle way to sneak in the green message.
Still, Costley says his most subliminal--and powerful--message, visible in his office and his classrooms, is: “We don’t own the land. We only borrow it from our children."
This Month's Tips
My Green Valentine
Even fairly minor holidays, like Valentine's Day, give you a chance to make greener choices.
Here are three ideas for making your celebration a bit more sustainable.
1.
Jewelry: If you're going to pop the question, be sure the diamond you
present to your sweetie is an ethical one. Before heading to a jewelry
store, read about the importance of conflict-free diamonds at this site or this one. And an online
search for sustainable, conflict-free or socially responsible jewelry
likely will yield some useful information and some shopping sites.
2.
Donate: Instead of buying a pricey bauble, consider donating to a
charity that you and your sweetie love and support. That could be a
local botanic garden or zoo where you two stroll or an animal shelter
where you adopted your beloved pup.
3. Roses for life: Rather
than presenting the tradition bouquet of roses, why not plan on buying a
rose bush and planting it together?
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All articles written by Elyse Umlauf-Garneau unless otherwise noted.