Make it Matter! How to sell when Green doesn t mean Go
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2 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
3 Session Description 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.
4 Learning Objectives 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.
5 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
6 Study Objective: Answer these Questions 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 attributes matter most to consumers buying or remodeling a home? What does a green home mean to consumers?
7 Study s Sample & Design 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
8 Ranking 7 Broad Attributes When Buying/Remodeling Home Durable/Resilient Efficient use of natural resources Energy efficient Healthy indoor living environment Most Important (1) Lower impact development Reduced carbon footprint Water efficient 5 6 Least Imp. (7)
9 64% Rank Energy Efficient as Most Important Attribute 1st Most Important 2nd Most Important Energy efficient 37% 27% 64% Durable/Resilient 24% 21% 45% Healthy indoor living environment 25% 19% 44% Water efficient Efficient use of natural resources Reduced carbon footprint Lower Impact Development 4% 14% 18% 5% 10% 15% 2% 5% 7% 2% 4% 6% Available by: * Age *Income *Household type *Race/Ethnicity *Gender *Census division *Price point
10 2 Ways of Describing Similar Concepts Resilient Or Disaster resistant Lower utility bills Or Reduced energy use High performance Or Optimized performance
11 Which Alternative Conveys Most Benefit/Value When Evaluating a Potential New Home Evaluating a Potent Difference > 60% Comfortable 83% Environmentally friendly 81% Livable 17% Water saving features 82% Green conscious 19% Low-flow water features 18%
12 Which Alternative Conveys Most Benefit/Value When Evaluating a Potential New Home Difference 40% - 60% Lowmaintenance 79% Reduced upkeep 21% High quality construction 77% Advanced construction practices 23% Energy efficient 76% High efficiency 24% Universal design 74% Independently inspected 70% Aging-in-place 26% Third-party inspected 30%
13 Which Alternative Conveys Most Benefit/Value When Evaluating a Potential New Home Difference 20% - 39% Functional living spaces 69% Eco friendly 68% Environmentally conscious 68% Lower utility bills 64% Inspired design 31% Green home 32% Low impact 32% Reduced energy use 36% Ventilation 64% Facilitates healthy lifestyle 63% Healthy living environment 62% Whole house approach 61% Pollution control 36% Facilitates well-being 37% Non-toxic materials 38% House as a system 39%
14 Which Alternative Conveys Most Benefit/Value When Evaluating a Potential New Home Smart design 58% Innovative design 42% Difference 11% - 19% Reduces my environmental footprint 57% Helps save the planet 43% Built above code 56% 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%
15 Which Alternative Conveys Most Benefit/Value When Evaluating a Potential New Home Difference 10% or Less Health 55% Resource efficient 55% Comfort 45% Zero waste 45% Disaster resistant 54% Resilient 46% Net Zero energy 51% Carbon neutral 49%
16 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) 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 90% 88% 85% 85% 84% 83% 83% 82% 81% 81% 81% 80% 79% 78% 72% 72% 71% 70% 70%
17 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) 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 69% 68% 65% 65% 65% 64% 60% 59% 59% 57% 57% 56% 55% 54% 53% 44% 40%
18 First Word/Phrase Consumers Would Use to Describe a Green/High-Performance Home (% of respondents) Efficient, Energy efficient, Water efficient, or High efficiency 32% 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%
19 When green is not effective
20 Disruption
21 Disruption utility death spiral
22 Disruption
23 Intersection
24 Intersection or Collision?
25 Intersection or Collision?
26 What the consumer wants 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.
27 So now what? Focus on the benefits of home performance. Cost Savings Control Comfort
28 What the consumer wants Cost Savings From NAR s Profile of Home Buyers and Sellers, 2015
29 What the consumer wants Cost Savings 84% From NAR s Profile of Home Buyers and Sellers, 2015
30 What the consumer wants Comfort Data from HOUZZ HEALTHY HOME TRENDS STUDY, 2014
31 What the consumer wants Control Keeping up with the neighbors Control = security
32 Challenge: Communication Green features are becoming standard in homes Any home can offer these benefits and YOU can be the one to guide them through REALTORS - NAR GREEN Designees are the new standard of professionalism for where marketplace is headed.
33 Sustainability Industry Technology Industry Sweet Spot
34 Why does this matter? Smart homes gather home performance data
35 Why does this matter? + = Disruption!
36 Now What?
37 Speaker Contacts: Rose Quint Craig Foley Amanda Stinton Assistant Vice President, Survey Research at NAHB Chief of Energy Solutions at RE/MAX Leading Edge Manager, Green Designation & e-pro at NAR
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