NAR and the U.S. Department of Energy ¿ a New Partnership

By Julie P. Hawkins, REALTOR®, LEED® AP and Candace Lightner, REALTOR® on behalf of the U.S. Department of Energy

Real estate agents, despite their influence on residential purchase decisions, have been largely neglected as an important player in forwarding the cause of energy efficiency. That is about to change. The National Association of REALTORS® (NAR) and the U.S. Department of Energy (DOE) are joining forces for the first time to reduce energy consumption in existing homes. This new partnership will help REALTORS® take a leadership role on an issue that has become a primary concern among homeowners.

Why Now?
Real estate prices are declining, energy prices are soaring and consumer demand for “green” is reaching a fever pitch. No wonder when you consider the fact that, according to the Department of Energy, the average annual utility bill for a single-family home is $1,900. Combined with the overwhelming prevalence of existing homes compared with new homes, circumstances are ideal for partnership and action.

Consider these statistics:

• Ninety percent of all registered voters in the US would be willing to pay $5,000 more for a house that would use less energy and protect the earth. (American Institute of Architects 2006, (www.aia.org)
• When asked how important energy efficiency is when searching for a home, 46 percent said it is very important, while another 46 percent consider it somewhat important. (2007 NAR Profile of Buyers’ Home Feature Preferences, www.realtor.org)

According to NAR, between four and six million existing single-family homes are sold each year. As the biggest conduit to the existing homes market at point of sale and beyond, agents have the most opportunity to impact the homeowner. DOE recognized that if they were going to make a difference in reducing energy consumption in the existing homes market they would need to target the real estate agent. Who better to reach the consumer than the person they rely on when it is time to buy or sell their home? DOE launched the Real Estate Initiative (REI) to address efficiency in existing homes via the real estate industry.

The Initiative will provide brokers and real estate agents with access to information and opportunities that will help them better understand and take advantage of this exciting new market niche, expand client services, and do something to help their planet. One component of the REI is to raise the awareness of real estate agents and foster market transformation by encouraging homeowners to improve their energy usage. The real estate agent is encouraged to explore the buyer’s willingness to make the prospective home more energy efficient at point of purchase or afterwards and the seller’s willingness to introduce energy efficient solutions and products to their homes and make them more saleable and competitive prior to listing.

NAR realized that its members would need more information and education on energy efficiency and green building to better prepare them for consumer demand and increase their career potential. What better ally than the Department of Energy, having already identified real estate agents as a key player?

After a successful meeting between NAR and the Department of Energy, the two established a Memorandum of Understanding (MOU), an informal but clear agreement to jointly conduct REALTOR® outreach and provide education to real estate agents from the vast array of information available at DOE.

The Memorandum of Understanding
The signing of this historic agreement is slated to take place by the NAR Midyear Meetings and Expo in Washington, D.C. this May.

According to the MOU, NAR and DOE will work together in three basic areas.

• Assess REALTOR® interest and attitudes about providing information to clients and determine the role that energy efficiency plays in realty transactions “in the trenches”.
• Jointly produce materials to educate REALTORS® and for REALTORS® to use in educating their clients. These materials would be supplemented with periodic articles in real estate trade publications and on NAR’s web site.
• Explore options for energy efficiency education using information provided by DOE for curriculum development.
  

NAR and DOE have already begun work in a number of areas.

• The February 2008 issue of REALTOR® Magazine included an article on energy audits.
• NAR has sponsored 5 luncheons for roundtables and focus groups in various states. Feedback will help define ongoing activities and material content.
• The project team presented in February at the RESNET Conference in San Diego on how energy auditors can form business relationships with real estate agents.

How You Can Become a Leader on This Issue in Your Market

• Learn about energy audits/assessments available in your area and build relationships with professionals who offer them. Visit www.natresnet.org to find a list of qualified auditors in your area.
• Attend conferences and seminars on green building and energy issues.
• Ask your state, local, and national Associations for education opportunities.
• Identify and build relationships with lenders who offer programs that help your client finance energy improvements.
• Provide an energy audit as a closing gift to your clients.
• Contact Hugh Morris hmorris@realtors.org at the National Association of REALTORS® for more information.

Given the increased attention to climate change, rising energy costs, and environmental awareness, the time is ripe to act. Informed real estate agents who can represent energy efficiency as a desirable and important home characteristic and know how to advertise it can set themselves apart in a changing market. It doesn’t take much to make a difference. As more brokers like you educate their agents, the real estate industry will begin to transform just as it always has—for the better.