Sunday, May 1, 2011

Earth Day-Sunrise or Sunset?

I may have mentioned before that I was at the first Earth Day--it was another era back then some 40+ years ago. People thought they could change the world-and whata you know--they did. Now---not so much. Getting even a small group of people to agree on what change to pursue is an extreme long shot. Polarization is a way of life. No middle ground in politics and everything is about politics. No middle ground often means to resolution.

Even real estate has become overtly political--trade organizations have their own party. The state and national trade organization share leadership people and political leanings, so there's really only one party and if you don't fit, you still get to pay the money. Funny how the public runs the gamut from right wing nut to lefty progressives, but their real estate agents are all supposed to be political clones. How's that work in the real world? Trade organizations don't care. An additional $40,000,000 flowing in the the national associations coffers could cast a warm light on almost anything. BUT will the state association approve another year of $49 surcharge? That's almost $100 and just how much success has the lobbying and political contributions had in improving the real estate climate. I guess you could argue that things would be worse without those efforts, but that's hard to prove.

What about houses and real estate information? Can they be influenced by politics? The trade organization HATE point of sale. Buyers would benefit from knowing the energy efficiency of houses BEFORE they make a choice. Sellers of extremely energy efficient houses will only see full return on their investment with energy ratings available prior to purchase so buyer can appreciate the relative efficiency. The trade organization insist the energy inefficient homes would be stigmatized and loose value if ratings were known. If that were even true (see below) it would be consistent with sqft of living area--larger homes tend to be worth more than smaller homes and we let Buyers know size before they choose. Fine views add value and we let Buyers look out the windows before they choose which house to purchase. Energy efficiency isn't easy to judge--even for energy raters. Buyer should have a figure, just like automobile gas mileage and appliance energy use. The trade organizations are in the way and their point of sale policy POTENTIALLY HARMS Buyers who are owed a fiduciary duty by their agents. Those agents are paying dues to further that potential harm. Sound a little bizarre? When fiduciary duty and politics collide what happens? Follow the money and you'll find the answer!

Oh (the see below comment) there are buyers for small homes, old homes, homes without views and there will always be buyers for energy inefficient homes. Sure the value of energy inefficient home would decline, but it should. Upgrades and incentives are available and everyone can't be choosy. There will be a market. The idea of stigmatization floated out there by the national association is just a smokescreen for their knee jerk anti point of sale doctrine. Why should owners of energy inefficient homes get priority over all BUYERS and owners of energy efficient homes? Go figure! It's politics wagging the dog!

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