Marketing in a Down Market

There is no question that the real estate market has been hurt by the foreclosures and short sales. Even in our region where there are fewer than most others, the low end of the market has decreased, and that hurts average pricing. For those who are pressed to sell, there are some simple protections from the deep dipping buyers who want to get the place at a low number-just say no!
I have seen two transactions in the past year which I believe were under-priced, and therefore undervalued.  Realtors may be hard pressed in this market, too, and may want a quick sale when it can be had. However, when a high quality property is marketed in its first stage at a low price and sells quickly, the ramifications trickle throughout the market, and it hurts the whole neighborhood.
Quality properties can me measured by location, condition, and now energy savings enters into the mix.
If an owner has invested a great deal in making their property efficient, renovated it with high quality fixtures and finishes, taken pride in its maintenance, that owner should not be afraid to seek a bit more in a limited supply market. The high quality properties are mostly off the market now. Supply and demand is still at work. We here in the River Villages and Scarsdale are still in a limited supply market when it comes to excellence in condition.

Solar Decathlon

You tube link


It is wonderful to see how teams of students from different parts of the world envision a Green living environment which offers comfort as well as efficiency. Take some time to view the videos on this site. Watch the top five at least on your tv with your family. It is good food for conversation and thought.
Caltech, Hawaii, and China are also very interesting. This is a great competition offered by the Department of Energy. The homes are all set up on the mall in Washington DC and tomorrow is the last day to see them.
There are ten categories for the competition. It is interesting to view the entries from the category that most interests you  

http://www.solardecathlon.gov/
 

Sustainability and Green Building

So what is sustainability?

The United Nations defines sustainability as:

“…a development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

The term “eco-friendly” is often used to reference the indoor environment, with ecologically friendly products considered less likely to create irritations and allergens. Low VOC (Volatile Organic Compound) paints are an example of an eco-friendly improvement. Materials which are plentiful are considered a more sustainable alternative as they do not deplete resources in shorts supply. Bamboo has increased in popularity in recent years due to its plentiful supply, and quick growth.

There are certifications for green products which indicate that the process of their creation or delivery to market has been monitored by a third party. The Forest Stewardship Council (FSC) is a non-profit which monitors forestry.

Green Building is a term which may or may not consider the sustainability of materials. Energy Star homes are green in that they are energy efficient and therefore create fewer carbon emission. However, sustainable green building is development which includes consideration of resources as well as energy efficiency.

Efforts to Promote Understanding of the Value of Green

Last month I had the honor to host a Green Day for the American Society of Appraisers International Conference in Washington DC. It is such a great experience to find other like minded people in one's profession who cans share their experience. I lectured in the morning session on Green Building Fundamentals and Value Considerations with Leanne Tobias, LEED AP, of Malachite LLC, who is one of the first LEED APs in the country in the commercial investment sector.

The attendees were diverse, and my video on geothermal was a big hit with one appraiser in particular, who had just been out to an estate with a system he had not fully understood. A few slides on thermal imaging made the group think about how to look at a home. When we have information on how a home performs viewed with infrared, it gives us a chance to view it as a system, not just a static place.

The slides on value considerations presented the best studies to date, and they all point in the same direction- the economy may be in recession but the Green Building industry is booming.

In the afternoon, I hosted the afternoon session on Renewable Energy Facilities. There was such animated discussion among the 130 or so attendees, a mix of Real Property and Machinery and Equipment appraisers. We had Michael Zimmer, Esq. of the American Bar Association speak on distributed generation, Joseph Ketell of Appraisal Economics David Moody of Shaw Consulting, and Les Miles of Asset Valuation Consultants. Commentary was that it was so great to attend a conference which was not tainted by any particular opinion about Green. We were there to learn, to look at the facts from different viewpoints, and bring away from it valuation knowledge. The panelists brought a variety of viewpoints and a wealth of factual information.

The point of planning this conference was to promote understanding of Green Building and Renewable Energy Facilities among appraisers. There has been criticism that appraisers too often overlook energy efficient items, and do not understand them enough to analyze their impact on value. Global Keepers is trying to address this issue, as a broker, appraiser, and educator.