A sustainability wave is coming: how do you stay competitive?

The real estate sector is changing, and so are the requirements for being a sought-after realtor. If you entered the real estate field a long time ago, you've probably noticed a gradual transition towards sustainability: people talking more and more about things like solar panels, energy-efficiency windows, and ethically sourced materials. But recently, this trend seems to have accelerated, and Millennials, who now account for a growing percentage of buyers, are willing to pay more for a property with sustainable features.

Eco-friendliness was, for many years, a nice-to-have feature. Green properties were nothing more than a niche, and oftentimes they would find their place in the portfolios of luxury realtors. Now, 79% of buyers call for cost-cutting energy-efficiency standards and wouldn't mind paying more for a property if that means they are helping the planet and saving money in the long run.

As a realtor, sustainability is something you can't afford to ignore. As environmental awareness increases, you should get ready for new expectations and perhaps even reconsider your strategy.

Get ready for clients to have different home requirements.

The image of the ideal home has changed a lot over the decades. Of course, some factors remain timeless, such as design and location, but get ready for homebuyers to have a new set of questions regarding energy efficiency and eco-friendliness:

- How green is the design of the home that I'm about to buy?

- What materials were used for its construction? Did they come from ethical, sustainable sources?

- How much waste was generated during the development?

- What is the energy rating of the house?

- What green features does the home have?

Apart from answering these questions, you should also be ready to include the following on your list of responsibilities:

- Educate clients on the benefits of sustainable properties

- Explain the long-term investment potential of green buildings

- Help them understand each green feature's strong points and help them choose the right ones for their budget and lifestyle

- Help them market their sustainable homes and find buyers faster

According to the 2020 REALTORS & Sustainability Report, 61% of realtors said that their clients are either very or somewhat interested in sustainability. This percentage could increase post-pandemic, as remote work becomes more widespread and people spend more time in their homes.

Contrary to popular belief, a green home isn't just a home with solar panels. That's one of the most popular features, of course, but the definition of a sustainable home has expanded much farther: a home that uses resources efficiently (water, energy, wood, etc.), that has waste reduction measures, good indoor air quality, uses non-toxic, ethically-sourced materials. Most importantly, not all green houses have to look the same, and they don't have to be expensive or futuristic.

Don't neglect sustainability in the commercial sector.

Sustainability doesn't apply only to the residential real estate sector. If you're a commercial realtor, you should pay just as much attention to sustainability. As consumers become more aware of the importance of green buildings, businesses have to comply, which is why we've been seeing more advancements in commercial buildings. From solar-powered office buildings to company headquarters surrounded by acres of forests, most countries now have greener business parks, and, as a realtor, you have to be ready to address their concerns.

Of course, not all countries are on the same page. In Sweden, for instance, which is one of the first in the field of green buildings and infrastructure, sustainable commercial spaces are the norm. Here, businesses are actively integrating sustainability into their business models, using balers and compactors like Miltek offers, to dispose of waste responsibly and including it in all processes from product development to logistics. Other countries, such as Chile, Turkey, and even the U.S., recycling and composting rates are still low, but even so, customer demand is increasing, and things could change quickly.

One of the secrets to success in commercial real estate is to anticipate trends so, even if sustainable buildings may not be in demand now, they will probably be in a few years, so you have to get ready for that.

Across all business sectors, sustainability sells. From fashion and retail to hospitality and healthcare, people want their favorite businesses to care about the environment. Why? Because consumers want brand values to resonate with their personal values. If not, they have plenty of choices and don't think twice before looking somewhere else. According to a 2019 survey conducted by Hotwire, almost half of Internet users changed providers because their products and services didn't match their personal values – and that includes environmental awareness.

How does the demand for sustainability affect you as a realtor? It's simple: if a company has eco-friendly products and services but has headquarters in a subpar building that generates lots of waste, pollutes, and doesn't offer its employees healthy working conditions, its reputation will be affected. And your clients might soon ask you to help them find a sustainable building.

Consider getting a certificate.

Whether they're residential or commercial, today's buyers are more and more educated and demanding. Advertising a property as sustainable is not enough to gain their confidence, so you need to back up your marketing with actual proof. If you want to make your commitment to sustainability known, taking part in a green building certification program is a great investment. There are many options to choose from: in the U.S., the most popular one is LEED (Leadership in Energy and Environmental Design), issued by U.S. Green Buildings Council, but there are also Energy Star, BREEAM, National Green Building Standard, GreenGuard, and many others.

Obtaining such a certification takes some time, and you will need to provide evidence that your property was made with low-emission materials and is eco-friendly. But, in the end, all the compliance testing and meetings will be worth it because your properties will become more marketable.