Make it Matter! How to sell when · Evaluating a Potential New Home Functional living spaces 69%...
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Transcript of Make it Matter! How to sell when · Evaluating a Potential New Home Functional living spaces 69%...
Make it Matter! How to sell when
“Green” doesn’t mean “Go”
Presenter(s):
Rose Quint || National Association of Home Builders, Washington, DC
Craig Foley || RE/MAX Leading Edge, Somerville, MA
Amanda Stinton || National Association of REALTORS®, Chicago, IL
Green. Sustainable. High Performance. These and similar terms
convey a value proposition that’s well understood and generally accepted
by “in the know” building professionals. However many buyers don’t have
the same level of understanding or interest in these topics, while others
are downright skeptical of them.
Session Description
Identify where the lexicon of the green building community fails to engage
non-industry professionals.
Explore the negative impact that poor engagement with consumers has on
the larger sustainability movement and how to fix it.
Consider data and anecdotes suggesting better ways to engage customers
on these topics.
Develop new approaches to talk about performance and sustainability in
ways that customers understand the value proposition and begin to
demanding green homes.
Learning Objectives
Agenda
Review the results of a recent Consumer Survey on What Green Means to
Homebuyers
Poll the audience on what green means to you
Identify why the building industry has been so ineffective to selling green
homes
Discuss what consumers want when it comes to green and how to talk to
them
Which ‘green’
concepts make
consumers feel the
most benefit/value
when buying a
home?
What is the
likelihood ‘green’
features will
influence home
purchase
decision?
What does a
‘green home’
mean to
consumers?
What attributes
matter most to
consumers
buying or
remodeling a
home?
Study Objective: Answer these Questions
Findings are based
on responses from
3,370 consumers who:
• Bought a home in the
past 3 years, or
• Plan to buy a home in
the next 3 years, or
• Plan to do a major
remodeling job
($25,000+) to their
current home.
Sample was designed
to represent the US
population, in terms of:
• Geographic
distribution
• Household
income
• Race/ethnicity
Study’s Sample & Design
Most Important (1)
2
3
4
5
6
Least Imp. (7)
Durable/Resilient
Efficient use of natural resources
Energy efficient
Healthy indoor living environment
Lower impact development
Reduced carbon footprint
Water efficient
Ranking 7 Broad Attributes When Buying/Remodeling Home
2%
2%
5%
4%
25%
24%
37%
4%
5%
10%
14%
19%
21%
27%
Lower Impact Development
Reduced carbon footprint
Efficient use of natural resources
Water efficient
Healthy indoor living
environment
Durable/Resilient
Energy efficient
1st Most Important 2nd Most Important
64%
45%
44%
18%
15%
7%
6%
64% Rank Energy Efficient as Most Important Attribute
Available by:
* Age
*Income
*Household type
*Race/Ethnicity
*Gender
*Census division
*Price point
Resilient
Or
Disaster resistant
Lower utility bills
Or
Reduced energy
use
High performance
Or
Optimized performance
2 Ways of Describing Similar Concepts
Difference > 60%
Which Alternative Conveys Most Benefit/Value When
Evaluating a Potential New Home
Evaluating a Potent
Water saving features
82%
Low-flow water features
18%
Comfortable 83%
Livable17%
Environmentally friendly
81%
Green conscious
19%
Difference 40% - 60%
Which Alternative Conveys Most Benefit/Value When
Evaluating a Potential New Home
Low-maintenance
79%
Reduced upkeep 21%
High quality construction 77%
Advanced construction practices
23%
Energy efficient76%
High efficiency
24%
Universal design74%
Aging-in-place26%
Independently inspected
70%
Third-party inspected 30%
Difference 20% - 39%
Which Alternative Conveys Most Benefit/Value When
Evaluating a Potential New Home
Functional living spaces
69%
Inspired design
31%
Eco friendly 68%
Green home 32%
Environmentally conscious 68%
Low impact
32%
Lower utility bills64%
Reduced energy use
36%
Facilitates healthy lifestyle
63%
Facilitates well-being
37%
Healthy living environment 62%
Non-toxic materials
38%
Whole house approach
61%
House as a system 39%
Ventilation64%
Pollution control
36%
Difference 11% - 19%
Which Alternative Conveys Most Benefit/Value When
Evaluating a Potential New Home
Smart design58%
Innovative design
42%
Reduces my environmental
footprint57%
Helps save the planet 43%
Built above code56%
Built to rigurous standards
44%
High performance
56%
Optimized performance
44%
Environmentally responsible
56%
Sustainable lifestyle 44%
Locally sourced materials
56%
Built with recycled
materials 44%
Difference 10% or Less
Which Alternative Conveys Most Benefit/Value When
Evaluating a Potential New Home
Health55%
Comfort45%
Resource efficient55%
Zero waste45%
Net Zero energy51%
Carbon neutral
49%
Disaster resistant54%
Resilient46%
(1=Not at all likely to seriously influence; 5=Very likely to seriously influence)
% of respondents rating 4 or 5)
90%
88%
85%
85%
84%
83%
83%
82%
81%
81%
81%
80%
79%
78%
72%
72%
71%
70%
70%
Safe community
Energy efficient
Lower operating costs
Low Maintenance
Durable/Resilient
High efficiency appliances
Reputable neighborhood where homes hold value
Resale value
Water Efficient
Built above required construction code
Healthy indoor living environment
Quiet interiors
Built by reputable builder/remodeler
Low or no toxins in building materials
Facilitates Healthy Lifestyle
Sustainable Home
Architectural style of home
Efficient use of Natural Resources
Good place to raise a family
Likelihood Feature Would Influence Purchase Decision
69%
68%
65%
65%
65%
64%
60%
59%
59%
57%
57%
56%
55%
54%
53%
44%
40%
Proximity to Shopping and Amenities
Neighborhood w/ potential for home value to increase
Design Aesthetics
A strong sense of community
Has latest technology
Proximity to Work
Close to Nature/Walking Trails
Certified by third party
Solar Power
Green home
Universally Accessible
Preferred school district
Reduced Carbon Footprint
Lower Impact Development
Off the Grid/Self Sustaining
Automated home
Has Rental Income Potential
Likelihood Feature Would Influence Purchase Decision(1=Not at all likely to seriously influence; 5=Very likely to seriously influence)
% of respondents rating 4 or 5)
Efficient, Energy efficient, Water efficient, or High efficiency 32%
(% of respondents)
First Word/Phrase Consumers Would Use to Describe a
Green/High-Performance Home
Eco-friendly or Environment-friendly/responsible/safe/conscious 15%
Solar, Solar power, Solar energy, or Solar Panels 8%
Lower costs, lower utility bills, or saves money 4%
When “green” is not effective
“Disruption”
“utility death spiral”
“Disruption”
“Disruption”
Intersection
Intersection or Collision?
Intersection or Collision?
Poll: Energy Efficiency is America’s No. 1 Housing Concern, Jan
2015
“the No. 1 unmet housing concern, which the Demand Institute that
carried out the poll defined as the “satisfaction gap” between what
respondents actually have and what they said was important, was not as
easily expected: energy efficiency.”
“Based on these numbers, energy efficiency was the housing concern
with the largest gap between the rates of importance and satisfaction –
beating out consumer needs and wants for updated kitchens, storage
space, safe neighborhoods, affordability, landlord responsiveness and
more.”
What the consumer wants…
Focus on the benefits of home performance.
Cost Savings
Control
Comfort
So now what?
From NAR’s Profile of Home Buyers and Sellers, 2015
What the consumer wants… Cost Savings
From NAR’s Profile of Home Buyers and Sellers, 2015
What the consumer wants… Cost Savings
84%
Data from HOUZZ HEALTHY HOME TRENDS STUDY, 2014
What the consumer wants… Comfort
Keeping up with the neighbors
Control = security
What the consumer wants… Control
Green features are becoming standard in homes
Any home can offer these benefits and YOU can be the one to guide them
through
Challenge: Communication
REALTORS® - NAR
GREEN Designees are
the new standard of
professionalism for
where marketplace is
headed.
Technology IndustrySustainability Industry
Sweet Spot
Smart homes gather home performance data
Why does this matter?
+ = Disruption
!
Why does this matter?
Now What?
Rose Quint
Assistant Vice
President, Survey
Research at NAHB
Speaker Contacts:
Craig Foley
Chief of Energy
Solutions at RE/MAX
Leading Edge
Amanda Stinton
Manager, Green
Designation & e-PRO
at NAR
