'Greening' up homes for sale
Everything seems to be going "green" these days, and now real estate brokers are joining the trend. Sustainability reporter Sarah Gardner takes an inside look at the growing group of "EcoBrokers."
Single family home with eco-friendly features for sale in Culver City, Calif., through EcoBroker Monique Carrabba (www.ecobroker.com)
More on The Economy, Sustainability, Entrepreneurship, Copenhagen
Links
- EcoBroker.com
EcoBroker.com
TEXT OF STORY
Kai Ryssdal: The residential real estate forecast we all know about. Generally lousy, continuing lousy for the foreseeable future. Which has realtors doing anything they can to drum up sales. Our sustainability reporter Sarah Gardner usually tosses her junk mail faster than you can say recycle. But a glossy ad not too long ago from a local real estate agent caught her eye. The agent described herself as an EcoBroker. So, Sarah set out to discover exactly what that means.
Sarah Gardner: Monique Carrabba has her work cut out for her today. She's trying to sell an 1,800- square-foot, three-bedroom, two-bath home for $1 million. Make that $999,000 to be exact. She's getting mostly looky-loos.
Monique Carrabba: Hey, thanks for coming by!
Carrabba is a certified EcoBroker. That's a professional designation she earned through a Colorado-based company called EcoBroker International. To earn that green distinction, Carrabba paid $395 for three days of course work and testing. She boned up on everything from asbestos to solar panels to so-called "green mortgages." Carrabba hopes it'll give her an edge. It already helped her get this listing -- an eco-friendly renovation in Culver City, a small town surrounded by Los Angeles.
Carrabba: The water heater is an on-demand water heater, the roof is a 50-year recycled rubber roof made out of recycled tires.
The house's eco-minded investor is flipping the property after injecting over $300,000 into an ambitious remodel. In went energy-efficient air, heat, windows and appliances, insulated water pipes, CFL lighting, formaldehyde-free cabinets and more.
Carrabba: I've had people at my listings say, "Green schmeen, who cares how ecologically friendly this place is?" to people that are embracing it and just can't get enough of it.
Former Department of Energy official John Beldock founded EcoBroker six years ago. He says 4,200 real estate agents have passed his program. Beldock describes them as pioneers who are changing the industry. Might be. The National Association of Realtors will soon offer its own green certification as well. But don't expect PhD's in environmental science.
John Beldock: They know that they're really green ambassadors.
Beldock says that means an EcoBroker may not know which solar panels a client should buy but can refer the buyer to someone who does. And Beldock says don't expect an EcoBroker to independently give a home a green rating.
Beldock: We don't really want the real estate professional to feel like he or she has to give the house a scorecard.
Jim Nicolow is an architect and a blogger for Marketplace's "Greenwash Brigade." He says the EcoBroker program is a step forward for environmentalism, but he'd sure like somebody to start defining what an "eco-friendly" home really is.
Jim Nicolow: If you have a Hummer that has operable windows and bamboo paneling is it green or is it still a largely inefficient vehicle and I think the same holds true for housing.
Nicolow suggests a green home should really mean an energy-efficient home. But the prospect of saving on utility bills in the future doesn't always convince home buyers to pay extra now. Greg Sears and his wife checked out the Culver City house on a recent Sunday.
Greg Sears:Cause things are already so expensive. You know we're first time home buyers and it's $700, $800,000 to get a starter house, which is ridiculous.
EcoBroker's Beldock says the "green premium" has dropped dramatically in many markets. A good thing too. It's tougher to get a loan on any house these days, green or otherwise.
In Los Angeles, I'm Sarah Gardner for Marketplace.
Comments
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From San Diego, CA, 01/09/2009
I like one aspect of the comment that states: "A truly green commitment would include dedicating 30% of the agents commission towards a buyer/sellers closing costs..." because we do not take all the real costs of doing business into consideration. The environmental impact of real estate has only been addressed recently by such organizations as Ecobroker International and the U.S. Green Building Council. The impact that housing as well as manufacturing, transportation and agriculture are all having on our environment will have great consequences in the near future and years to come. However, we are seriously underestimating the environmental costs in pricing those items and accruing very little toward making those payments when they come due. My question is: why is "30% of the real estate agent's commission" the only place to look for a source of funds to cover such costs? Is a person that can make such a statement in the employ of a firm that is willing to reduce 30% of all his workers' pay and donate it to such a cause? And if he is that employer, could he impose such a burden upon his own employees and himself as well? If the answers are "yes," then I believe such a business person has the skill and care to include such costs into the price of the product instead. That way, each product sale contributes more toward the environmental costs of that product instead of the burden being shifted to the staff required to make and sell those products. Then, we can have a real impact on the cost of maintaining our Ecosphere by both shouldering the real responsibility for our environment as well as the people that live within it.
From Arlington, VA, 12/04/2008
I am a certified EcoBroker and I do understand that some real estate agents who call themselves "green" are just looking for an edge. I have been been committed to the environment and living as sustainably as I can for more than 30 years. I got out of the business during the boom years as a matter of conscious and when I came back to real estate last year I was determined to be a different kind of Realtor. I didn't know that EcoBroker existed as a certificatin option and was just educating myself in a piece meal kind of way. I found the course immensely helpful in organizing my knowledge. It took me months to do the course because I tried to really study, research and absorb all that I was learning. I too am sceptical of those who do the course in 3 days UNLESS they have a really strong background in green building and environmental issues in general.
From WA, 10/27/2008
This is PR reliant-media that fails to adequately question the greenwasher's framing. 4 self interested talking points vs 2 skeptics. The only link is the the self-pormoting party. The really scarce resources are money and time. New buyers will be scrambling to pay a high mortgage. Time spent earning money is taken away from community and environmental commitments. How much serviceable material went into the landfill to do this remodel for flipping? Seems we forget to Reduce, Re-use, and Re-cycle. Over $500/sf is not sustainable housing for the masses...
From Honolulu, HI, 10/22/2008
A truly green commitment would include dedicating 30% of the agents commission towards a buyer/sellers closing costs which the client can then redirect toward reducing his/her carbon footprint, "Carbon Credit at Closing". A contract is required in advance of submitting an offer or a listing agreement (RESPA and State Laws) The client can do what ever they want with the closing cost credits from the Agent/Brokerage but if the investment in infrastructure that reduces utility expenses makes sense then it is less likely to be diverted non-green uses. Buyers can start with Solar water heaters (30% of residential electrical consumption) and move on to Energy Star appliances, insulation, etc....with any remaining funds. Some buyers of existing green homes use the Carbon Credit to purchase a solar water heater for their children who have large families or invest in Green mutual funds. A trickle down effect of sorts.
From Placerville, CA, 10/21/2008
I would hope that if this "eco broker" is really serious about her commitment to sustainability -- as opposed to just looking for a marketing edge -- she would phase out her use of "glossy" ads in favor of some paper that is more readily recyclable.
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