Sustainability and green living are the new buzzwords in real estate. Even potential home buyers demand sustainable living spaces today. Developers focus on eco-friendly and sustainable projects, and real estate brokers see this as a unique selling strategy for businesses.
But as a real estate broker, you must know about green living certifications. With this knowledge, you can create better property listings, attract new clients, and outpace local appreciation.
According to an NAR report, more than 70% of buyers consider green certifications essential, which shows buyers know about eco-friendly living. Besides, well-designed and eco-friendly homes can save money and appreciate property value.
Integrating sustainability into real estate can contribute to a healthier planet. Let’s understand the importance of green building certifications and certificate types.
Importance of Green Building Certifications
In real estate – Green building certifications help promote eco-friendly and sustainable construction practices. These certifications play a vital role in reducing the environmental impact by emphasizing water conservation, energy efficiency, and environmental responsibility.
Beyond the environmental benefits, these certifications also contribute to environmental change. Some benefits include increased property values, access to govt initiatives, and lower operating costs.
The best part is that these initiatives align with global efforts in energy conservation. Projects with green building certifications attract eco-friendly home buyers. Ideally, brokers can use this as an advantage for selling a property.
Types of Green Building Certifications:
Energy star
As its name suggests – Energy Star mainly focuses on energy efficiency. By identifying the energy-efficient properties, it can reduce utility costs. Plus, the certificate is measured against a set energy performance criteria.
To earn an Energy Star – an apartment has to undergo third-party inspection to verify the applicable programs. Also, commercial buildings must score above 75 or higher to earn the star.
Ideally, the score indicates that they operate more efficiently than 75% of buildings globally. With the certificate, most developers earn the trust of potential home buyers.
LEED
Leadership in energy and environmental design is another significant green building certificate brokers should know about. The best part is that it is internationally recognized and trusted by developers. The certificate has different levels based on sustainability achievements.
However, the testing levels consider air quality, energy savings, and noise pollution. It uses a 100-point scale for property ratings. Developers can save on operational costs by getting a LEED certificate and establishing buildings as LEED-certified.
Also, developers can ensure – a high level of project acceptance with the LEED certification. LEED certificate and energy efficiency go hand in hand.
WELL
WELL, like its name, it focuses on health. WELL is a building standard, a performance-based system that measures and monitors features of the built environment that can impact human health. WELL focuses on the health of people staying in the property.
A WELL-certified building is designed to improve the emotional health and sleep patterns of the residents staying in the building. In addition, it is a grounded body of medical research that explores health connections in buildings as we spend most of our time indoors.
Ideally, WELL-certified spaces can help create a built environment to improve sleep patterns, nutrition, mood, and overall fitness. Further, WELL is revolutionizing the way people see buildings.
The health concepts are changing, which is undoubtedly a part of the change. Real estate brokers can sell properties with WELL certification, as most home buyers are health-conscious today.
BREEAM
Building Research Establishment Environmental Assessment Method is the best practice in sustainable building design. It is a globally recognized standard that allows the assessment of new and existing project assessments across different building types.
In addition, it uses different performance measures to evaluate design construction and building specialization. Typically, it considers energy, water use, management processes, transport, pollution, waste, and ecology.
A rating of 85 and above is an outstanding rating for BREEAM. Further, BREEAM assessment can be applied to new construction and domestic refurbishment. Different project types fall under this category.
How do brokers use green building certifications to sell properties?
Green building certifications can elevate a home project. As potential home buyers make conscious choices, they look for sustainable properties. Brokers can use this and market the properties based on the same factor.
With a growing preference for eco-friendly homes, the demand will surge further. Also, there is an increased demand for sustainable properties among tenants. Tenants also wish to stay in properties with energy efficiency.
Further, there is a positive impact on the resale value of the project. Green certifications help contribute to positive sentiments of the property. Also, homes and buildings with energy efficiency features command a higher resale price than other projects. For instance, if a property is sustainable, it will attract more buyers in the future, increasing the resale value.
Attracting eco-conscious buyers becomes easy with these certifications. With the stamp of these green buildings, you can appeal to buyers looking for environmentally friendly spaces.
As a broker, you can market such projects as desirable. Some brokers also market the properties as responsible living. Integration of green living certifications aligns with market trends because green living is the need of the hour. Developers are playing their part in promoting such projects. Being a broker, you can market these properties and create an impact.
The impact on homeowners
The growing demand for sustainable real estate will benefit both investors and homeowners. Rightly so, sustainable spaces can increase property value, and homeowners get to stay in eco-friendly spaces.
However, it’s brokers who can benefit from this concept. A project with green certification has a higher demand, so you can market the property with the same sentiment. And most potential homebuyers will make inquiries as they care for the environment. However, the way you market the property is essential.
Attach high-quality photos and videos to the property listings when you sell these spaces. Lastly, knowing about these certifications is important, as it lets you stay in line with new features.