Going "Green" to get a Competitive Edge in a Glutted Market

According to Rex Nutting, Washington Bureau Chief of MarketWatch, the inventory of previously owned homes up for sale in May 2007 rose to the highest level in relation to sales in 15 years, putting even more houses into an already glutted market.

With sales of existing homes falling 0.3% to a seasonally adjusted annual rate of 5.99 million down from the upwardly revised 6.01 million in April, according to the National Association of Realtors, and sales down 10.3% from just a year ago and off approximately 17% from the peak, what can builders and homeowners do to differentiate themselves from the 4.43 million homes currently for sale on the market?

Building or remodeling with Green products is the perfect way to do just that.

According to a survey conducted by the National Association of Home Builders and McGraw-Hill Construction, 85% of homeowners said they were more satisfied with their new green homes than with their previous, traditionally built homes. The survey allowed respondents to state more than one reason for buying an environmentally friendly home; showing that nearly 50% of those surveyed said that concern for the environment was a reason to buy a green home, and the same percentage held that their family's health was a reason. 63% stated lower operating and maintenance costs motivated their purchases.

Additionally, homebuyers were willing to pay a higher price up front to get those benefits. "We found that people buying green homes were willing to pay an $18,500 premium in order to get a green home," said Harvey Bernstein, vice president of industry analytics, alliances, and strategic initiatives at McGraw-Hill Construction.

To be classified as, "Truly Green", homes must include three or more products or features addressing the following:
1. Energy-Efficiency
2. Indoor Air Quality
3. Resource Management and/or Use of Recycled Materials
4. Site Management/Location of the Home and its Surroundings
5. Water Efficiency

Who is the Competition?

Their research showed that only 0.3% of existing homes qualified as "Truly Green" whereas, 2% of homes incorporated a green product, such as energy-efficient doors and windows, appliances, or heating.In Jack Trout's "Differentiate or Die: Survival in Our Era of Killer Competition", he warns, "Those who fail to differentiate their product or service, in the mind of the consumer, won't stand a chance."

This is your chance to differentiate yourself as a renovator, builder, homeowner, real estate agent, or other professional looking to change your business as well as the world.