It seems to be the popular trend these days. Everything and everyone is going green. It’s moving so fast that organizations and bureaucracies can’t keep up. In Real Estate, we should embrace anything we can do to better our environment. Besides, we are desperate for some “good press”.
It’s unfortunate that it takes surging utility prices to spark interest in conservation. It takes rising gas prices to realize that we must become self-sufficient. If Brazil could convert to “bio-fuel” through sugar cane “ethanol” within 3 years, then we certainly should be able to convert by 2028. There was a subtle move to force the “electric car” out of service. Will we finally learn?
I have always believed that the next stage of evolution should be “evolution of thought”. Our minds must expand beyond our technology. We don’t educate our children in the simplest abilities to promote evolved mind, body and spirit. We are in control and we have the responsibility to insure the future of our planet, for generations to come.
If a trend can be meaningful, put into practice, cooperate economically, and gain political support, then it’s possible. The true test is whether we allow it to thrive economically. We have a great start in tax incentives and government assistance, but we can’t just pay people to “go green”. We must create the foundation for this to be economically feasible and even profitable.
We have to increase demand in certain markets in order for product prices to decrease. We have to educate consumers on the savings in energy prices. We must adjust our appraisal and lending standards to valuate green advancements. We have to create a way to entice and reimburse proper recycling of all material that can be effectively reprocessed.
First, we must make the separation, transportation and recycling of building material profitable. We have to take the first proactive step in defining our principles. I remember in my youth, when I rode my bike around to all the neighbors’ houses collecting bottles and cans just so I could return them to the grocery store for a cash refund, financing my candy supply. In Oregon, there was a fee that was paid upon purchase of bottles and cans. You didn’t exactly pay to go green, but you were certainly fiscally motivated. You already paid for the material; you might as well get your investment back. I’m not saying that’s the simple solution with building material, but it certainly was a catalyst in responsible conservation. I find myself much less motivated as a consumer these days in states where the deposit/refund isn’t followed. Simple solutions can make a difference.
Hopefully America has learned from their aggressive spending habits of the last decade. When the economy is robust, driving forward in record paces, it’s easy to ignore savings and reasonable judgment in your spending habits. People weren’t saving as much, watching their monthly expenses, planning for the future. People will start to pay a great deal more attention to their futures. People will start to consider paying another $10,000 for a home if it saves them $200 each month in utilities. People will care when they can cut their expenses while promoting a positive change.
If we are to truly impact the market, we must have clarification and cooperation from the banking industry and the appraisal industry. If we do not have acceptable valuation methods for green advancements, then our developers will be forced to abandon the experiment. Banks and appraisers need to involve themselves in determining an appropriate way to adjust their vocabulary to meet the needs of the changing industry.
Unfortunately our society usually requires extreme conditions to promote a shift in reality. Maybe people will realize they can do more even if they don’t receive compensation. Maybe we’ll recognize we can live healthier, breath healthier, have less chemical substances in the air, live on less processed food and drive reasonable vehicles. Maybe we will become less materialistic and more humanistic. Maybe we’ll become better people, live better lives and do more for our society. Become active, more than just placing a catchy phrase on a bumper sticker. Maybe we can evolve.
Sincerely,
Marc Tesla
