Organized Real Estate is missing the boat

It's all about GREEN...
I'm not talking money, I am talking about the proposed Ontario Green Energy Act.




(looks familiar huh?)



Well my plan as I post on this blog is to fill you in little by little about myself. A little suspense keeps things interesting (if anyone cares). If no one does, then one post when I am stuck for something to write about I will do an "about me" post. Until then though, I should tell you I am a green minded individual. I am looking forward to sustainability, economic revitalization, the new responsible economy etc. Perhaps it is all a pipe dream, but we can hope right?!?



So there were a number of articles recently (both locally here in St. Catharines and on a larger scale as well) regarding Realtors opposing the Proposed Act.



I will cite a couple, but you probably don't need to read them. They all summarize roughly as follows: Realtors are afraid of "mandatory" energy evaluations at time of sale. Essentially they are worried that there is already enough pressure on the market. Accordingly, now is not the time to add red tape and cost and potentially discourage many people in the market from buying or selling.



http://www.theglobeandmail.com/servlet/story/LAC.20090225.GREEN25/TPStory/TPNational/Ontario/



http://scstandard.com/ArticleDisplay.aspx?e=1450918



So here are my thoughts:


I can't agree with my colleagues who apparently call the shots. The primary reason is that as a professional Realtor I support all efforts to assist buyers in making the most informed decisions possible. From both a “green” standpoint, and a “cost” standpoint it is advantageous for buyers to be aware of the exact costs of home ownership. Any tools that we can put in place to add transparency to the transaction are advantageous. Plus, as a potential seller I would want to know that my green updates will not only save me money in the short term on utility bills, but likely increase resale value as my house being highly efficient would then clearly be more valuable then the identical energy hog next door because the cost of monthly energy use would be $X less. I don’t know why OREA opposes other then the additional expenses and complications associated with condition fulfillment might cool the market more so. I know they are also worried about some homeowners’ values declining because their houses are not up to snuff when it comes to efficiency. Ultimately though, it is our job as Realtors to assist our buyers to make as informed a decision as possible. It is in fact our fiduciary duty to serve our client’s best interest- the cost of energy use is as important to me as the costs discovered during a home inspection identifying items such as broken plumbing, aging roofs, failing HVAC etc. It is time that we Realtors raise the bar again, just like we did bringing in virtually mandatory home inspections. Obviously the market awareness and demand is there- the federal government has already awarded over $52mil to over 52,000 home owners who have completed EcoEnergy audits over the past 18 months since the program’s inception. If we back this program there excellent economic effects as well which will benefit us Realtors in the end. Think of the stampedes by sellers to home depot and to local trades to upgrade their homes. A significant portion ($1000s) gets rebated by the government so they are not out as much as they spent. The rebates include part of the inspection cost. There is also the new federal government home improvement tax credit which can be applied (up to $1350). In the near term all of this spending will keep people in jobs and likely create many new ones too. Think of the required number of new energy inspectors alone, let alone the furnace guys, the window installer, the home depot staff and the like. High employment helps keeps the real estate markets healthy.

The energy efficient upgrades also makes homes more affordable to carry which means more first time buyers will flood into the market. Sure there might be a bit of bureaucratic hassle to handle, but wouldn't it be worth it? After all, in the long term a greener and more energy efficient economy will be more profitable and productive on the Marco level.

It sure would be nice to have a cleaner world too!

Instead of opposing the legislation, let’s trumpet our support for it. It could be a great PR move for Realtors who are often looked upon with a certain level of skepticism. We are adding even more transparency to the transaction with energy audits. What a great service we would be doing the public and the planet. We would be on the forefront of the green future. I am sure that while it might hurt slightly in the short term, it will be a pleasant surprise in the long term to know Realtors care about more then their pocket books.




Seems like a winning PR move to me!!