Eco Friendly Real Estate Blog

Asheville Real Estate-  Land Journal  

Not long ago, a 1031 Like-Kind Exchange client traded her beachfront resort condo with its cumbersome property management responsibilities, for the relative freedom of a land purchase. This was a sixty-plus (60+) acre tract. It was endowed with amazing and very obvious natural features. She found it attractive not just for the beauty, but for the freedom.

Here she can hike, camp or simply sit quietly observing the star-studded night sky. She is free to go, unencumbered by HOA dues and property management expectations, with a simple picnic basket to enjoy the  waterfall. (see photo)

To watch over the Beauty for generations to come, this client could create a private land trust with protective covenants which might provide additional tax advantages.

Of course, her acreage must qualify as an "outstanding natural area," having natural character. It must either provide habitat for rare or endangered species of plants or animals, or have scenic or other features of scientific or educational value. 

But what about her plan to build in the future?Should she choose to build in the future, she would  customize the conservation restriction she imposed at the time of purchase, to allow for limited construction under strict guidelines that protect the property's natural assets.

This post is part of a series on 1031 Like Kind Exchanges- "Invest in What is Important to YOU"

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(*)/'(*)   ________The Asheville NC Real Estate Journal . Mountain Homes and Land Legacies- Asheville NC Real Estate  © 2011. NAR GREEN®, EcoBroker®, Eco Certified ®Real Estate Consultant. INFORMED CHOICES. THOUGHTFUL ADVICE. Email me to request a copy of EPA's Sustainable Design and Green Building Toolkit- janeAnne@janeAnne.com

Unauthorized reproduction of any information including photos  on this site is a violation of existing copyright laws.  All rights reserved.

Eco-Friendly Mountain Homes and Land Legacies-  
- Asheville NC Real Estate  Waterfall 1031- Asheville Style© 2011.
828-776-0773

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"This professional REALTOR® has an eye for extraordinary value
in Mountain Homes and Land Legacies, green-living communities,
and properties of enduring excellence."
 ~ MKS

Sometimes, tough real estate conversations happen when you are least expecting them. Yesterday, as a busy day in the field (literally )  wound down, my cell phone rang. A sad, but gentle voice spoke. "

I was referred to you as an Asheville Land and Second and Vacation Home Specialist," she said. I could hear the tension in her voice. At the end of a day in the field, this conversation with a potential seller would turn out to be something to consider deeply.

I thanked her for calling, and listened as she told me she wanted to talk with me about her "circumstances" and how they affected the high-end acreage she and her husband had bought in an eco-community not too far from Asheville.

 I learned that  she is a recent widow who had agreed to a two-year listing contract just after her husband's death. She didn't want to part with the Land. "It was my husband's favorite place on Earth," she told me.

But she needed to let it go. With the economic downturn, she explained, there had been few showings in the past year, and her husband's long illness had taken a toll on their financial security..

Now, this Land in an eco-friendly development is about an hour's drive from downtown Asheville, NC. Situated within 5 minutes of a small town, it celebrates nature with numerous trails that lead to waterfalls, one of which is on her property.  As she enthusiastically described it, I could sense her attachment to the property.  This, I understood. And even though Asheville is noted for eco-communities  and is a most desirable second home destination,  I had to consider her need to sell at this time,  as well as the former listing history. Three basic questions came to my mind right away-.

Questions:

1) Was it more than likely that this Land could end up as an expired listing?
2) Would it be impossible to finance if it were not free and clear?
3)  Even though we cover large acreages (100-200AC) here in Western North Carolina, could we do justice to this tract?

As we ended our talk, I explained that I  would  look at "the numbers,"  and do research via our MLS and by making phone calls to my professional colleagues.
We set up a time to continue our conversation.

I had to know in my heart if there  was /was not  a possibility of  selling the property and give an honest report back to the soft-spoke widow.

Even in the Asheville mountains, one of the most attractive areas of the country for second and vacation homes and for Land, a price reduction and the possibility of  lost property value had to be addressed. We would need to agree on pricing the Land "RIGHT"- right from the start or lose the window of opportunity. 

Research:

1) Determine the Fair Market Value.(FMV)
2)  Take into account the time frame for selling
3) Price the property to take both of these factors (and other factors that may come up) into account.  

There could be some tough real estate conversations on the horizon. Stay tuned.

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(*)/'(*)    ..........      ............" We are on the roll  for  sustainable  innovation."  Unauthorized reproduction of any information on this site is a violation of existing copyright laws. All rights reserved.- Eco-Friendly Mountain Homes and Land Legacies-Asheville NC Real Estate Tough Real Estate Conversations. But They Need to Happen. (1)© 2010.   

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More importantly, who buys homes?  What is the typical buyer profile statistically speaking? 

In Part One of the Series I discuss the need to 'Ditch the term GREEN' - It's confusing.  People don't understand it anymore because everything is 'GREEN'

Reading through the comments of my post it is evident why we need to, as fast as possible, get rid of the word.

• It means something different to everyone
• It brings on Anger to some in light of recent and absurd Government spending
• Many people assume that it just means it costs more money

We could go on and on.  But this is about noting the Obstacles and by the end of the Series, hopefully having an answer to overcome and move forward.

While much can get lost in the written word I am actually embedding a video below to help explain what I am about to say here.  But if you want the cliff notes version, keep reading.

Overall as a society we are more open to Sustainable Ways.  We are more open to buying something that is better for the Environment and for ourselves as well.  However, the Basic Ways that people purchase a product, any product, have not changed.

We still as consumers weigh our options.  Cost vs. Benefit - What's in it for me - Can I afford it?

In Houston, we have a lower than normal Median Price Range for the Nation.  This is one of the largest obstacles to overcome.  While we all may love to have Solar Panels, Rainwater Capture System, GeoThermal or whatever.  Many and probably the Majority, simply can't afford it. 

Second, Well- It's that word Green again.  We need to get back to basics and explain 'Green' homes in a way that makes sense.  Do we use 'Green' Flooring for a Healthy Home or do we maybe use a Wood or Tile that promotes less accumulation of dust and allergens for a more comfortable home to those with Allergies and Asthma?  The two statements are very different.

Third, building inventory homes is a Business that sells a product.  We need to remember that if we are using a checklist for a Green Building Program, checking off points to make the home Green - That Green means something different to everyone.  While one may consider putting an additional $5000 in to Mechanical Equipment, the buyer of the home may want a Healthier Home.  And Vice Versa.

I think from a Sales perspective we need to get back to the Discovery stage of things.  What do people want?

Ok, for a more in depth (much more in depth) version of what I am trying to say here watch the power point presentation below.  It has graphs, Houston Economic information and everything.  Oh, and it also explains why I feel that nearly every single homebuyer wants Green Features in one way or another.

The Obstacle to Building and Selling Green in Houston will be a Series - this is the first of the series.

Typically speaking in the Real Estate Market right now in regards to Green I would say that the average line of thought, the average acceptance of a 'Green' or 'Greener' home not only in Houston but around the Nation is very high.

We have gone from a few years ago, the average consumer thinking that a 'Green' Home was Recycled and only beneficial to the Environment to Today - Understanding that not only is a 'Green' home better for the Environment, It is better for the Homeowner.

This is a Drastic change in thinking for Society when you think about it in real terms and how fast this thought has changed.  Now, the acceptance of Greener Homes may be high, but do they sell?

Regardless of what publication we may read that 'Green' homes are not selling, then we hear that 'Green' homes sell faster and for more money.  When we speak to consumers we hear 'Green' homes are not being built in my area and then 'What is a Green Home?'

This tells me, my personal opinion, that there is still a lot of confusion out there in the market. In all actuality it is probably too soon to know what statements are correct.  In basic terms I personally believe that we have 3 different kinds of people:

• The extreme Green Buyer that will spend and do what ever it takes
• The what I call an Enviro Hater that won't buy anything termed 'Green' or 'EcoFriendly' just for the principle
  
• The Buyer that wants to do the right thing, not be wasteful and have a better quality of home and environment

The 3rd point being the largest of the population generally speaking.  Then, there is the confusion.  The confusion comes in to play because everyone has a different opinion of what 'Green' really means.  Some think it means that the product costs more, some think of it as being Energy Efficient, others think made of recycled content ...

How effective really are the Checklists for Green Building if the purchaser has no idea what it means?

More than ever in the Real Estate Industry we are at a point where we have to sell Value whether it be for a service or a product.  People want to know what makes you or your product different and worth it for me to buy it whether it is Green or not.

What this tells me is that where a couple years ago we thought we had 10-15 years before the term 'Green' disappeared in relation to 'Green Building' - we are probably on the verge of it happening right before our very eyes.  Today, right now.

As a Real Estate Professional that specializes in helping people buy and sell Green Properties I see the need to use different terms to overcome this Confusion.  Let's get rid of the Term 'Green'.  Buh Bye,  See ya Later.

Why? Because it is becoming Normal.  It is expected now that Homes are more Energy Efficient now than what was built even last year.  It is expected that Homes are moving in the right direction and using Healthier Building Products.  And, what the heck is Green anyhow?

We need to, as Real Estate Industry Professionals, learn what it is that makes a product 'Green' and be able to explain it to people.  In markets, such as Houston, where we are still trying to get over the hurdle towards Mass Green Building, do we need a new approach?  A change in terminology and possibly even a change in the approach to what products we build with.

If it is a Green Home, Why?  What makes it Green?  Is it more Energy Efficient?  What products separate it from the rest and does the Home Buyer even care?

All of these are obstacles to building a better and greener home in the Houston area.  Over this series let's break it down and look at the real trends of where 'Green' building may be headed.  Let's take a looksy at how to get the Green Building movement going in a faster pace towards a more Sustainable Houston.

The answer may very well be where they always have been.  The answers may lie in our daily Housing Market and average Houstonian Statistics.

Part 2 of the Series - Who is the Average Homebuyer in Houston?  Who lives in Houston anyhow?