Tips for Marketing High-Performance Homes

Agents may have to adjust their marketing strategies when selling an eco-friendly home

By Regina Ludes

John Young, CRS, had only a cursory knowledge of energy-efficient homes when he began upgrading an older home he had bought several years ago.

After getting an energy audit through a home inspection company, he followed recommendations to install foam insulation in the attic, replace the furnace and heat pumps with more energy-efficient models, and add solar panels to the roof.

“The attic level is comfortable enough to sleep in now. Some months, our electric bill is $0 for a 4,000-square-foot home,” says Young, a REALTOR^® with RE/MAX Excellence Realty in Silver Spring, Maryland. Going through the renovation process helped Young understand the questions some of his clients have about making energy improvements.

According to the National Association of REALTORS^®, one-third of agents say they have assisted clients with buying or selling a property that had energy-efficient features, and 55% say their clients have expressed an interest in sustainability.

Thanks to increased media coverage, today’s homebuyers and sellers are more knowledgeable about the products that will make a home more energy efficient. On home tours, these discerning, eco-conscious buyers can identify tankless water heaters, Nest thermostats and quality windows and doors in a heartbeat. To keep pace with these clients, agents need to develop a thorough understanding of the eco-friendly marketplace, including which energy improvements are in high demand and will help sell a home quickly and at the best price.

Know what buyers want

Utility cost savings: For most buyers, utility cost savings is the biggest factor driving the demand for high-performance homes, but other factors contribute, too, says Craig Foley, chief sustainability officer with LAER Realty Partners in Boston and an instructor for NAR’s Green Designation.

Ventilation: “When COVID-19 happened, homes with better ventilation became more attractive,” Foley says. “Builders that received federal incentives for new construction could pass those savings onto buyers. Homeowners can see the cost savings of upgrades and receive rebates from utility companies.”

Tankless water heaters: Young says tankless water heaters are catching on with buyers because they take up less space in the home, and homeowners can quickly see the benefit. “With tankless water heaters, only the water that’s being used is heated, not the entire 40–50 gallons,” Young explains.

High-efficiency furnaces that are equipped with two power modes are popular. “Low- and mid-efficiency furnaces that cookie-cutter builders often install operate only at a high level, regardless of the temperature outside,” explains Eric McCartney, CRS, real estate broker with Century 21 Heritage Group Ltd. Brokerage in Aurora, Ontario in Canada. “The two-stage technology of higher-efficiency models can distinguish how much heat is required to get the interior temperature at the level you want. The lower-power mode conserves energy, reduces temperature fluctuations and balances uneven heating in the home.”

Other popular features: Spray foam insulation provides better insulation than traditional fiber versions, and smart thermostats automatically adjust the temperature when they sense that someone is in a room.

However, Young says homes with solar panels can be problematic if the panels are leased by a third party rather than owned outright by the seller. In his market, solar leases typically run for 20 years, which has scared away some buyers who are reluctant to take over a lengthy lease.

Emphasize benefits of energy features

Young says he promotes a home’s eco-friendly features in the property’s brochure and website, sometimes with an explanation of the benefits, if space allows. For example, if a home has a 95% efficient furnace, he explains what that percentage means and how that feature will save money on utility bills.

His local MLS recently added more fields to list energy-efficient features. In the heating and cooling category, for example, a drop-down menu reveals several sources of HVAC, including geothermal, a category that was added at the request of agents who noticed more homes with that feature.

McCartney says the Ontario Real Estate Association (OREA) created a special form called the Green Information Checklist, so members can identify a home’s green features and share results from recent energy audits with buyers. McCartney attaches the form to the MLS listing and publishes the list of green features in the property brochure and custom website. Since the Toronto MLS does not yet provide fields for energy rating data, he works around this issue by uploading a PDF of the property brochure onto the listing page, jotting a note in the comment field and sharing a link to the property website.

While terms like “green” and “eco-friendly” are commonly used to describe these properties, Foley prefers “high-performance,” which he believes is more accurate and does a better job marketing the home’s energy efficiency. However, agents should avoid greenwashing, the practice of promoting green attributes that don’t exist, adds Foley.

Provide resources to sellers

Making expensive energy-efficient upgrades before listing a home isn’t practical for some sellers, says Young. “Adding eco-friendly improvements, such as replacing windows and doors, require proper planning and time to complete, which the seller may not have,” he explains.

Foley says the easiest improvements sellers can add are insulation and air sealing around windows and exterior walls of the home. With every home he and his team sell, they make sure buyers are aware of various utility programs that offer incentives for energy improvements. A program called Mass Save, for example, pays residents up to 75% for insulation upgrades up to $2,500. He recommends homeowners keep invoices for any improvements, as well as billing statements before and after the upgrades to show buyers the differences in utility costs.

Depending on the owner’s budget, McCartney will ask clients to replace the furnace and appliances if they’re outdated or haven’t been maintained. One couple he’s been working with replaced their roof after McCartney noticed several shingles were missing. “New roof products are guaranteed for life, and they’re often transferrable to the next owner,” McCartney says. The transferability of the guarantee can appeal to buyers who don’t have the time and money to make the improvements themselves.

He advises agents to talk to sellers about home improvements they’ve made. “They probably have a file documenting all their improvements, and they may not think they’re important or eco-friendly. But you may see them as green features that can sell a home,” McCartney says.

Advice for agents

There’s a lot to learn about high-performance homes, and some of it may be misleading, says Young. Agents should take the time to learn all they can about energy products and rebate programs in their area to better serve their clients. Going through the upgrade process himself helped Young understand what’s at stake. “Once you’ve gone through the upgrading process yourself, it’s easy to walk through it with clients.”

If agents are reluctant to educate themselves or feel uncomfortable about marketing high-performance homes, Foley suggests they refer the business to another agent who does have expertise, preferably someone who has earned a GREEN designation.

As the demand for high-performance homes continues to grow, agents who have developed the knowledge and expertise about energy-efficient features can become a reliable resource for clients when it’s time to buy or sell a home.

Learn how to leverage smart home features in your marketing strategy with the upcoming course “Power Up on Smart Home Technologies” at CRS.com/catalogsearch.

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