THE RISING COST-OF-LIVING IS DRIVING A NEW PERCEPTION OF VALUE
“This is a far richer and more meaningful conversation at point of sale or rent, because it showcases the true value of the property – bringing together “afford-to -buy” and “afford-to-live-in”
We’re used to thinking of a property as a static thing and talking about the traditional “showcase” features. However, there’s a more valuable conversation on offer about what a house can deliver for the occupant - the lifestyle benefits of the living experience that the home offers.
How does the house respond to the surrounding environment?
How does the house perform in terms of cost and efficiency?
And how does the house deliver in a way that ensures a healthy, comfortable and connected lifestyle?
In addition there is a flow-on impact to the agent themselves - the value they are bringing to the transaction as a true property expert is clearly apparent – they are more than just a sales agent with local area insights.
Many vendors have invested in these features and they want to connect with an agent who is also upskilled in these features and has deep insight into how to position them correctly to drive interest and perceptions of value.
THE NEED FOR MORE VISIBILITY ON THE ENERGY EFFICIENCY FEATURES OF A PROPERTY IS COMING FROM ALL DIRECTIONS
This training matters …why and why now?
Property professionals with comprehensive property knowledge will always command respect. Effective selling, no matter what the product, will always be underpinned by the sales persons “product knowledge” – and, in today’s market, this knowledge needs to go beyond a property’s traditional showcase features.
Future-focused property knowledge really matters – understanding the detail and the direction that our homes are changing in will give valuable insight into the evolution of the new “aspirational’ home and how it aligns with changing perceptions of VALUE.
THE NEW CONVERSATION
IN RESIDENTIAL REAL ESTATE
THE UNCOMFORTABLE HOME
As property professionals we all know that an uncomfortable home, too hot in summer and too cold in winter, is hard to market. It’s why we often have to get to a property early for an open home, to ensure the property is comfortable inside. Rather than always accommodating the bad properties - it’s time to showcase the comfortable homes. When you have been trained to identify and effectively link the right property features which will deliver the potential for a comfortable home - then everything will come together for your buyers and renters.
When you’re living in the home, these comfort and running cost issues are the things that really impact your quality of life – an uncomfortable property, that costs a lot to run, is often the reason you will want to leave.
GOVERNMENT POLICY YOU NEED TO KNOW ABOUT
THE CURRENT STATE OF OUR HOMES
Recent research has found that 98.5% of housing in Australia falls below the economic and environmental optimum.[1] The core issue is that residential buildings are not as energy efficient as they could be. Many existing homes were built before energy building standards came into effect, resulting in poor energy efficiency and comfort.
In Australia (with the exception of the ACT), there are currently no energy efficiency performance ratings required to be disclosed when purchasing or renting homes.
This prevents consumers from easily distinguishing between high and low energy efficiency options, restricts government initiatives to reduce and manage electricity demand, and makes household-level emission reductions difficult to facilitate.
HOME ENERGY RATINGS
The states and territories and the federal government are working together to develop a targeted building policy which specifies the development of a national framework for residential energy efficiency “disclosure”. In this context, it refers to transparently identifying the energy efficiency potential of a property for sale or rent via an energy rating certificate, which is part of the property marketing experience for all properties on the market.
How will this national plan impact the way real estate agents do business?
There will be:
The introduction of voluntary and/or compulsory home energy ratings and property marketing requirements for all homes at point of sale or lease.
Real pressure for agents to stay relevant in the marketplace by understanding what the new consumer wants and the impact of cost-of-living increases on their property choices.
An opportunity for a new generation of real estate agents to upskill with specialist knowledge about new energy efficiency and energy rating property features, and to leverage the competitive advantage that more comprehensive property knowledge will deliver for them.
The need to support buyers and sellers in identifying and effectively marketing these energy efficiency and energy rating features, and in recommending the right capitalisation or renovation opportunities which will enable these future-focussed property upgrades.
Continual improvement in design and energy efficiency standards of homes to buy/rent.
[1] Moore, T., Berry, S. and Ambrose, M., 2019. Aiming for mediocrity: The case of Australian housing thermal performance. Energy policy, 132, pp.602-610, available at: https://www.sciencedirect.com/science/article/abs/pii/S0301421519303878?via%3Dihub
The national plan for better homes - cheaper to run and more comfortable
As a nation, we are looking at ways to reduce our energy use while at the same time improving on our productivity and lifestyle.
Residential buildings are responsible for around 24% of overall electricity use and 12% of total carbon emissions in Australia.
It’s estimated that the global property market consumes over 41% of the world’s energy. That’s more energy than any other sector.
Experts project that these figures will rise significantly by 2030 so it’s imperative that we design, build, and upgrade our properties to make sure our homes are comfortable and suited to their climate, reduce bill stress on individual homeowners and reduce impact on the environment.
To achieve stronger energy productivity, the Australian Government is working together with the state and territory on a roadmap called the National Energy Productivity Plan[1] with a goal to increase our energy productivity by 40% by 2030.
This includes implementing measures designed to:
Improve the energy efficiency of new or existing homes.
Improve home energy ratings and the quality of information disclosed during the sale and rental process.
Assist householders to make informed choices about their energy use and appliance purchases.
REMEMBER.
Beyond the environmental impact these property features deliver sought after LIFESTYLE BENEFITS that home buyers and renters are SEEKING, WANT TO KNOW MORE ABOUT, and really VALUE at time of sale or rent
