your team can begin with your typical status quo target market, the high-end market. this market generally provides the most dollars per effort with commission activity well in excess of $100,000; unfortunately, sales ultimately depend on heavily watered lawns, wanton hvac practices, car dependency, and low cultural diversity behind housing gates. this market generates high commissions, but at what social license cost?
a successful real estate agency does not have to leave the high-end market off the table; quite the contrary, you should focus on generating the most profit for the least amount of effort at the lowest client acquisition cost. one market that stands out concerns eco-conscious real estate buyers. its niche participants are willing to purchase green goods and services at a premium price point.
let us examine three reasons behind focusing on high-end, eco-conscious real estate buyers:
a) geographic concentrations with higher than normal undergraduate completion levels
ecologically conscious home buyers tend to aggregate around the pacific northwest and in creative center hubs. seattle, portland, san francisco, and austin have established creative hub credibility attracting intelligent people. looking at undergraduate completion levels with the u.s. census tool, you can see that all four locations boast undergraduate completion rates well above their state levels:
- seattle at 56.5% vs. washington at 31.6%
- portland at 43.1% vs. oregon at 29.2%
- san francisco at 52.0% vs. california at 30.5%
- austin 44.8% vs. texas at 26.3%
in my professional opinion, my most successful clients have generally graduated from college and hold at least one graduate degree. these buyers generally concentrate in certain markets; so the questions become, how can you tap your future eco-conscious home buyers in your market? do you have to move to a creative hub center or help create an entirely new market in your market? choosing the lowest client acquisition and most balanced emotional energy investment would probably revolve around migrating to a creative hub.
b) high post-purchase satisfaction
eco-conscious home buyers express satisfaction after investing in a national green building standard certified home. homes must meet home health, low operating cost, and sustainable lifestyle standards promulgated by the national green building standard certification process.
the eco-building pulse recently reported on a study published by guildquality in october 2013 that showed overall satisfaction among various topics. the most impressive metrics concerned repeat business from a well thought referral program. you must have repeat business and new business from green referrals.
the guildquality study sampled over 187 participants revealed that 92% of respondents would purchase another green certified home; moreover, 94% of respondents would recommend purchasing a green certified home to their friends and family. these statistically meaningful metrics demonstrate high client engagement.
how can you get your brand deeply involved reaching out to potential green home buyers and their friends and family? where can you improve your sales pipeline through targeting green home suppliers? why get your clientele involved in marketing your brand?
as a market player, you must go beyond your purchasing end-user and move upstream towards home building suppliers. you could drum up business through solar panel distributors, water saving irrigation supply companies, and green home builders. these businesses need your support in helping them develop future customers; likewise, you need their help to build a stable green certified home industry. your clients need these products and services. why not help them out too?
repeat business creates economic value in your business. who does not want repeat business, high referrals rates, and high client satisfaction? work on choosing the right target market and begin executing your brand strategy intelligently with sustainable green values at the core.
c) future clientele economic empowerment
at the opposite extreme, we can analyze home building growth north of austin. you can see unchecked single family dwelling construction, such as crystal falls in leander, that will not only lead to more traffic congestion and strained water resources but also to depleted upstream watershed capability and water quality issues. these home building activities are occurring in the watershed area feeding into the colorado river system, creating potential flooding problems down in southeast austin. what a price to pay for rural excess!
so, how do you combat poor urban planning and economically empower your clientele? you could participate in the wanton land grab and sell poorly created, environmental train wrecks; or, you could work with ecologically innovative property developers capitalizing on sustainable farming practices.
a housing development in fort collins, colorado, called the bucking horse development not only has high quality homes but integrates the housing development into a working farm. depending on how the homeowner's association owns and manages the farm, you could potentially help provide your new homeowner with a stable, quality food and income source. the association can potentially drive future economic growth through farming profits rather than charging continually higher fees for diminishing services.
you can enable community building centered around the production, distribution, and consumption of healthy produce and livestock. neighbors could have a farmer's market sponsored by your real estate business as well as the homeowner's association. they could even start a decentralized, localized energy grid with solar panels and wind towers. you should become a part of the movement, deepen your brand, and fatten your wallet!
newly created and growing communities across the nation from the federal capitol to fort collins, colorado, have begun reversing destructive suburban construction behavior that started in earnest after world war ii. you can help your clients swap out golf courses for urban gardens with positive changes in community, health, and sustainability.
conclusively, you can grow your own eco-conscious real estate business by focusing on high-end, educated consumers who seek out purchase satisfaction and economic empowerment. leading the way to a greener world and your own private wealth rests on attracting these clients. do your due diligence and go for it!
