Consumers, not just speaking of those interested in Real Estate, are demanding more.  We are getting to the point where we are demanding a better product.  One that will last longer, one that will have less maintenance, products that are….Green?  Products that promote less waste in the landfill, overall efficiency, and so on?

We read Consumer Reports and have for many years now to find out what product will give us the biggest bang for our buck.  We take in to consideration products that we buy and how long they will last.  We are getting tired of those that are essentially disposable, one that we will have to ‘throw away’ or Redo within a few years.  It seems more than before with large purchases we are stepping away from the Clearance Racks so to speak- or the ‘irregulars’.

Where used to we would get the instant Gratification of buying a product Dirt Cheap.  The example I used yesterday was a pair of jeans on the Clearance for $10.  One leg is about an inch shorter than the other, but if we wear the right shoes, no one will likely notice…until we wear them a couple of times to find that although they were cheap, that was a poor investment.  They really are uncomfortable and no matter what shoes I wear it is evident.  So, we then go out and buy another pair for $40 that we can wear for a significantly longer time period.  Well, that $40 pair of jeans just cost you $50 when you think about it.

Same thing goes with homes but the cost  is quite a bit higher.  For this next example I will use apples to apples.  New Construction vs. New Construction.

2 Homes are about the same size.  One costs $300,000 and the other costs $250,000.  Both have Granite Countertops and heck, the cheaper one may even have other features that you like better!  But let’s look at the Quality of Construction and the lifetime cost of the home.  Is it really apples to apples?  Likely it is not. The cheaper one may very well be that pair of jeans with one leg shorter than the other.  You can buy it today for less money, and have an electric bill that is $200 more per month, or the design of the home may cause wood to rot out or promote mildew growth.  The carpet is a lower grade, the roof is only a 15 year shingle vs. a 30 year- the possibilities are truly endless.

What am I getting at?  Just like the jeans that ended up costing you $10 more, the home over the lifetime of you living there may cost you a considerable amount of money more in the end.

As we step away from the Clearance Racks, how do we advertise these differences? Where stone floors, Granite Countertops and even Stainless Steel appliances give a home that sexy advertising kick that some people are looking for, there is nothing really sexy about Caulking Floor Joists to promote energy efficiency or having premium Ventilation in the home so you don’t sneeze as much or get dirty carpets at bedroom doors from air being sucked underneath it.

“You won’t sneeze or have to dust as much in this home!” is not anything that I expect to see in any advertisement any time soon.

So what ARE we going to see?  Just 5 years ago even having a Radiant Barrier on a home was considered to be too expensive, now it is too expensive to NOT have it!  Are we going to start seeing Builders and Homeowners post Energy Ratings to prove the difference?

How about a home with Solar Backup advertised with “I had Electricity during Ike!”

We are in a time of amazing change.  Personally I think we are going to see huge changes in the way homes are advertised- Both New Construction and Resale.  Will people start demanding Certifications on homes whether it be LEED, Environments for Living or NAHB Green?  Consumers have demanded over the past 5 years or so more and more Energy Star Logos on various products.

Just as cars have a miles per gallon sticker and energy star products have an annual usage tag, maybe homes should have something similar?  There are many people out there that think this is a good idea.  Will it happen in the next year or even two?  Probably not.

Where am I going with this?  The Construction industry is changing every day.   The term ‘Green’ in ‘Green Building’ seems to become a little more normal and even expected by the day whether that be through Efficiency or Total Lifetime Cost through maintenance.

If you are really looking in to stepping away from the Clearance Rack with your next home and buying one that is Durable, Efficient and all that Jazz- take a look at the Details- the ‘fine print’ so to speak.   Weigh your options.  Is that home you are thinking about buying going to cost you more in the long run?  Is it maybe just Greenwashed – i.e. more talk than action? – Will it REALLY perform the way you want it to?

If you are selling an existing home with Green, Energy Efficient, Maintenance upgrades- Now more than ever it is important to have a Real Estate Agent that can actually portray that in Advertising so it doesn’t end up on the ‘Irregular’ rack by accident.

It’s all just food for thought.  It will be interesting to see what ‘09 has in store for us.