Wealthy Homeowners Take Advantage of Market By Blanche Evans, Realty Times columnist You make money when you buy, not when you sell a home, suggests one popular idiom. That could be the reason the wealthy are trolling for bargains.

While most of America is struggling with four percent gains in inflation, the wealthy, with discretionary income of $100,000 or more, believe that today’s market is a good time to buy. According to The Annual Survey of Affluence and Wealth in America, from American Express and the Harrison Group, 40 percent of the nation’s wealthy plan to buy real estate in 2008.

The participants were divided into groups - the upper middle class ($100,000 to $149,000 annual income), the affluent ($150,000 to $249,000) and the super affluent ($250,000 to $499,000). Of the wealthiest, 41 percent said that owning a second home was “almost a requirement,” with 33 percent in the market for such a home in 2008. One quarter are shopping for a third home. The wealthy view real estate as diversification from their other investments, and 88 percent believe that real estate values will rebound. Asked if the real-estate market represents a buying opportunity, 67 percent of upper middle class respondents agreed, as did 72 percent of the affluent and the super-affluent. But only the most wealthy were more committed to putting their money where their mouths are. Seventeen percent of upper middle class respondents plan to buy a home this year, as do 24 percent of the affluent and 26 percent of the super-affluent. Not that it means they’re scared of the market. They simply could already be real estate owners.

One in 10 homeowners owns a second home, 23 percent of homeowners age 45-64 own two or more homes, as do 24 percent of those aged 65. One-third of the homes sold in 2007 were to second-home buyers and investors, says the National Association of Realtors, even though only 13 percent had incomes above $100,000.

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Going green isn’t going away.From new construction to home renovations, builders, homeowners and politicians alike are focusing on green housing.

Agents - including many RE/MAX Associates in offices around the world - are joining the green revolution by marketing carbon-neutral programs and incentives to their customers. They’re promoting green homes, which combine sustainable building materials with energy-efficient designs.

In the United Kingdom, carbon-neutral efforts have become a national initiative with the adoption of the Kyoto Protocol - the international environmental agreement that requires signers to reduce carbon emissions by 2012 and beyond.

“The housing industry has a major responsibility to sustain the environment for future generations,” says Arun Sharma, Broker/Owner of RE/MAX Property Specialist Group in Milton Keynes, Buckinghamshire, England. “The policies have had a big effect on housing in the U.K. All houses must have an energy-efficiency rating certificate.”

Although British citizens generally support the efforts, many are reluctant to pay for the modifications or change their lifestyles unless they see a direct benefit, Sharma says.

“By taking a responsible role and approach, we hope to set an example for other agents and encourage our customers to be more green,” he says. “We aren’t doing it for sales reasons; it has more to do with our corporate social responsibility.”

Sharma’s office isn’t alone.

In Philadelphia, for instance, RE/MAX CitySpace promotes its prominent focus on carbon neutral initiatives, says Sales Associate/Owner Andrea Boelter.

Hundreds of U.S. cities - including Philadelphia - have adopted measures to reduce carbon emissions on the heels of the federal government’s refusal to ratify the Kyoto Protocol.

For RE/MAX CitySpace, pushing green living makes sense because its agents specialize in new construction, Boelter says. She encourages her agents to earn the EcoBroker designation, which involves training on innovative environmental strategies.

“Our Sales Associates need to be informed about things like solar panels, energy efficiency and different types of green products,” Boelter says. “Our customers are learning about these things, so we should too.”

Recognizing the rising interest in green living can present a competitive advantage to eco-savvy real estate agents, says Paul Komor, Lecturer of Environmental Studies at the University of Colorado in Boulder.

“You’re going to find potential buyers who are more concerned about energy costs,” Komor says. “You’ll find a lot more generous incentives from utility companies to encourage energy efficiency. There are many simple things agents can do to help their customers live green, like offering free or reduced-cost energy audits, providing energy-efficient light bulbs and suggesting Energy Star appliances. Green features are amenities, like a three-car garage, and people want them.”

Adopting a green state-of-mind, Komor says, will help Realtors stay on top of a fast-growing lifestyle and in touch with their customers’ needs.

“Energy efficiency saves money for all of us, and it’s about doing the right thing,” Komor says. “Realtors need to realize that the world has changed and that they are ahead of that change. It’s like voting; one vote doesn’t matter, but all votes together can make a difference. Collectively, everyone’s actions - including Realtors’ - can improve the environment.”

Become an EcoBroker

Want to make the world a greener place?

If you’re a licensed real estate agent, earn the EcoBroker Certified Designation while learning about the latest topics influencing the way your clients buy and sell real estate.

EcoBroker helps you stay current with the growing green real estate market and the opportunities it presents. EcoBroker’s core curriculum offers innovative energy, environmental, and green strategies and tools for real estate professionals. Learn to reduce liabilities and increase buyer and seller satisfaction.

In order to earn the EcoBroker designation, agents must fulfill a straight-forward set of requirements, including an enrollment application, a $395 enrollment fee and completion of three educational courses available online or in a classroom.

For more information, visit www.ecobroker.com or call (800) 706-4321.

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