Stephanie Edwards-Musa, Realtor ® Spring/Woodlands, TX Real Estate

More importantly, who buys homes?  What is the typical buyer profile statistically speaking? 

In Part One of the Series I discuss the need to 'Ditch the term GREEN' - It's confusing.  People don't understand it anymore because everything is 'GREEN'

Reading through the comments of my post it is evident why we need to, as fast as possible, get rid of the word.

• It means something different to everyone
• It brings on Anger to some in light of recent and absurd Government spending
• Many people assume that it just means it costs more money

We could go on and on.  But this is about noting the Obstacles and by the end of the Series, hopefully having an answer to overcome and move forward.

While much can get lost in the written word I am actually embedding a video below to help explain what I am about to say here.  But if you want the cliff notes version, keep reading.

Overall as a society we are more open to Sustainable Ways.  We are more open to buying something that is better for the Environment and for ourselves as well.  However, the Basic Ways that people purchase a product, any product, have not changed.

We still as consumers weigh our options.  Cost vs. Benefit - What's in it for me - Can I afford it?

In Houston, we have a lower than normal Median Price Range for the Nation.  This is one of the largest obstacles to overcome.  While we all may love to have Solar Panels, Rainwater Capture System, GeoThermal or whatever.  Many and probably the Majority, simply can't afford it. 

Second, Well- It's that word Green again.  We need to get back to basics and explain 'Green' homes in a way that makes sense.  Do we use 'Green' Flooring for a Healthy Home or do we maybe use a Wood or Tile that promotes less accumulation of dust and allergens for a more comfortable home to those with Allergies and Asthma?  The two statements are very different.

Third, building inventory homes is a Business that sells a product.  We need to remember that if we are using a checklist for a Green Building Program, checking off points to make the home Green - That Green means something different to everyone.  While one may consider putting an additional $5000 in to Mechanical Equipment, the buyer of the home may want a Healthier Home.  And Vice Versa.

I think from a Sales perspective we need to get back to the Discovery stage of things.  What do people want?

Ok, for a more in depth (much more in depth) version of what I am trying to say here watch the power point presentation below.  It has graphs, Houston Economic information and everything.  Oh, and it also explains why I feel that nearly every single homebuyer wants Green Features in one way or another.

The Obstacle to Building and Selling Green in Houston will be a Series - this is the first of the series.

Typically speaking in the Real Estate Market right now in regards to Green I would say that the average line of thought, the average acceptance of a 'Green' or 'Greener' home not only in Houston but around the Nation is very high.

We have gone from a few years ago, the average consumer thinking that a 'Green' Home was Recycled and only beneficial to the Environment to Today - Understanding that not only is a 'Green' home better for the Environment, It is better for the Homeowner.

This is a Drastic change in thinking for Society when you think about it in real terms and how fast this thought has changed. Now, the acceptance of Greener Homes may be high, but do they sell?

Regardless of what publication we may read that 'Green' homes are not selling, then we hear that 'Green' homes sell faster and for more money. When we speak to consumers we hear 'Green' homes are not being built in my area and then 'What is a Green Home?'

This tells me, my personal opinion, that there is still a lot of confusion out there in the market. In all actuality it is probably too soon to know what statements are correct. In basic terms I personally believe that we have 3 different kinds of people:

• The extreme Green Buyer that will spend and do what ever it takes
• The what I call an Enviro Hater that won't buy anything termed 'Green' or 'EcoFriendly' just for the principle
  
• The Buyer that wants to do the right thing, not be wasteful and have a better quality of home and environment

The 3rd point being the largest of the population generally speaking. Then, there is the confusion. The confusion comes in to play because everyone has a different opinion of what 'Green' really means. Some think it means that the product costs more, some think of it as being Energy Efficient, others think made of recycled content ...

How effective really are the Checklists for Green Building if the purchaser has no idea what it means?

More than ever in the Real Estate Industry we are at a point where we have to sell Value whether it be for a service or a product. People want to know what makes you or your product different and worth it for me to buy it whether it is Green or not.

What this tells me is that where a couple years ago we thought we had 10-15 years before the term 'Green' disappeared in relation to 'Green Building' - we are probably on the verge of it happening right before our very eyes. Today, right now.

As a Real Estate Professional that specializes in helping people buy and sell Green Properties I see the need to use different terms to overcome this Confusion. Let's get rid of the Term 'Green'. Buh Bye, See ya Later.

Why? Because it is becoming Normal. It is expected now that Homes are more Energy Efficient now than what was built even last year. It is expected that Homes are moving in the right direction and using Healthier Building Products. And, what the heck is Green anyhow?

We need to, as Real Estate Industry Professionals, learn what it is that makes a product 'Green' and be able to explain it to people. In markets, such as Houston, where we are still trying to get over the hurdle towards Mass Green Building, do we need a new approach? A change in terminology and possibly even a change in the approach to what products we build with.

If it is a Green Home, Why? What makes it Green? Is it more Energy Efficient? What products separate it from the rest and does the Home Buyer even care?

All of these are obstacles to building a better and greener home in the Houston area. Over this series let's break it down and look at the real trends of where 'Green' building may be headed. Let's take a looksy at how to get the Green Building movement going in a faster pace towards a more Sustainable Houston.

The answer may very well be where they always have been. The answers may lie in our daily Housing Market and average Houstonian Statistics.

Part 2 of the Series - Who is the Average Homebuyer in Houston? Who lives in Houston anyhow?

The Houston Chronicle earlier this past week released an article talking about the Real Estate Market in this HUGE City. It was actually a really great OVERVIEW of what is going on. However, the accuracy of Market Reports can only go so far.

• Home Sales dropped 16%
• MEDIAN Prices dropped 4%
• Only 4,355 Single Family homes were sold last month
• Home Sales have dropped for the 19th Consecutive Month

Oh my. The sky is falling. Run for the hills!

Ok, so not really. The Houston MLS consists of 60 Areas that are broken down in to 152 Locations. For example, The Woodlands is in Area 15 (Southwest Montgomery County) and Location 107 (The Woodlands) which is The Woodlands Proper and the Communities directly surrounding.

So, the Statistics above are for the 152 Locations that include the far reaching Counties that make up the Greater Houston Metropolitan Area. Many, many, square miles of area. Countless.

The other problem with Market Statistics is that they typically look at PAST numbers. Obviously the Crystal Ball can not forsee the future. It's kind of like when all of the Economists were saying that we were going to be in a Recession - When in all actuality we were already in a Recession. We just couldn't see it until the Statistics came out 6 months later.

As Professionals in the Real Estate Industry though, we feel it. We can feel the market most of the time. We can feel the changes before they are a statistic.

The past 2 weeks I have felt the inventory Dropping. Not as many homes to show, serious lack of homes available in certain price ranges/sizes. All of these up here on the North Side of Town. Areas 13,14,15 - for the most part. Cypresswood to just North of The Woodlands and Stuebner Airline East to 1960 and Cypresswood.

I have seen multiple offers, back up contracts and the fear in Buyers that they will 'lose out' on the 3 or 4 homes that they like best and an urgency to submit offers ASAP.

While looking at the overall Statistics for a Huge City we may think that we can get a 'good deal' because there is SO much inventory when in all actuality - It depends on the Area within the City.

Up here in Location 107 (The Woodlands) Here is a little of what we are seeing. As of today there were 939 Active Listings on the market.

Foreclosures-

• 10 Active Listings
• 12 Pending
• 6 Sold since April 1st
  

(Right at about 1% of all of the listings in the area are Foreclosures. Sold in all Houston MLS last month was 25%)

Short Sales-

• 4 Active
• 1 Pending
• 0 Sold since April 1st

As of March 31st -

• 1,169 Active Listings
  
• Today 939 Listings (end of April 2008 1,210)
  
• 197 Pending
• As of today 262 Pending (end of April 2008 246)

It is just really interesting to watch the Statistics change right before our eyes - But to be Accurate, we should wait to see what they look like in a few weeks. Is it all seasonal? It could be. But it sure looks like maybe the Market is headed towards a Better place up here on the North side.

Wanting to sell your home? Now may be the perfect time to do that before everyone else figures out what is going on. As it sits right now, I have 8 buyers that need homes...and nothing available for what they are looking for.

To look at Market Statistics compiled just about 10 days ago, check out my Spring/Woodlands Market Reports on Flickr.

This segment of Greening the Existing Home Webinar Series is the final and 8th one - after this post I will do a Final Wrap up with more detailed information on websites that we visited and all of the segments in one place.

In this video Michael Strong and I discuss a variety of topics including "Does Green Remodeling really add value to your home?" - And then these other topics

• Michael's Top 10 Best Practices to Green Up Your Home
• USGBC ReGreen Guidelines
• NAHB Remodeling Certification

This is probably the shortest of the segments being just a little over 30 minutes long but is jam packed full of great information for anyone that is wanting to do any Remodeling in their home.

I would also like to take a quick moment to Thank our Sponsors for helping to bring this to you:

Pella Windows

Bluegill Energy Management

Lutron Lighting and Electronics

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Down here in Houston with our humidity, a high maintenance property is not only no fun - But it is also incredibly expensive over time.  If you are having to constantly change out siding, re paint your exterior or find that interior wood warps to make crooked walls and creaky floors, looking in to the Durability aspect of Green Building may just be the answer.

In continuation with the Greening the Existing Home webinar series with myself and Michael Strong we discuss how to take an existing home and make it a Low Maintenance haven for you and your family.

In this segment you will hear about FSC Certified woods, Building Products that promote straight and Durable walls/floors along with other things that just make a homeowners life a little easier.

I would also like to take a quick moment to Thank our Sponsors for helping to bring this to you:

Pella Windows

Bluegill Energy Management

Lutron Lighting and Electronics

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