Do you have the guts to change?
Do you have the guts to grow your business in a new way, or will you stay stuck in the quicksand of same old, same old? I believe our greatness lies in our willingness to change.
Products and services are moving to a more solution-oriented environment. Successful businesses are searching what needs to be changed and then developing strategies on how to accomplish that goal.
You’re not alone. Major companies are going through the same process. Apple has aggressively moved into the music and cell phone industry, IBM has moved into business consulting services and the building industry is going GREEN.
What is GREEN? It is more than energy efficient and environmentally friendly. The building industry is researching integrated design which is the result of Builders, Architects and Designers working together to produce a healthy, comfortable, durable, energy efficient and environmentally responsible product.
What are the costs and benefits? According to the U. S. Green Building Council (USGBC), a Leadership in Energy and Environmental Design (LEED) certified structure has several perceived advantages over a standard code structure. They specifically state the perceived advantages of building GREEN is an 8 to 9% decrease in operating costs, 7.5% increase in building values, 6.6% improvement in Return On Investment (ROI), 3.5% increase in occupancy and a 3% rent increase.
They further state that a LEED certified Home perceived comparison to a standard code home would be as follows: If the selling price of the code home is estimated to be $300,000 the certified home would need to sell for $308,500. They estimated the mortgage payment to be approximately $55 more per month for the certified home. However, the certified home will save approximately $45 per month in energy costs and another $10 per month in the water bill. The net cost difference for code home or green home to the consumer is then $0.00 per month. The $55 in monthly payment is offset by the savings of $55 in the monthly water and energy bills. They also state that the GREEN home may have higher perceived value and is something that consumers will be strongly motivated to purchase in the very near future. They are running pilot programs in several states to further define the processes. The USGBC does not certify products, materials or services. USGBC will certify individual homes, buildings, and tenant improvement projects. A builder or project team may choose any of the products that meet the requirements outlined in the LEED Green Building Rating Systems.
The Florida Green Building Coalition (FGBC) also has certification programs. The FGBC has the following designations available: Green Home Standard, Green Development Standard, Green High Rise Standard, Green Local Government Standard for Green Cities & Counties and lastly, Green Commercial Buildings Standard. FGBC goal is to have a realistic system and standard that provides you with the tools and guidance necessary to help you please your customers, as well as reward and promote your efforts. Their membership is open to any interested individual.
The FGBC mission statement is “to provide a statewide Green Building program with environmental and economic benefits.” What does that mean to a builder developer and the home buyer? The home buyer is looking for an affordable home that is healthy, comfortable, durable, energy efficient and environmentally responsible. The initial net monthly cost of a home remains the same but the value to the homeowner is increased.
According to FGBC a Green Certified Home has the following benefits:
Benefits to the homebuyer: Enhances the profitability of resale, the affordability of operation, durability, in-door air quality and may provide greater access to mortgage money.
Benefits to the home builder: Gain valuable promotion and advertising, differentiate your product from the competition, Homebuyers link green home features with quality, increased customer referral, Adds to the marketing value of your homes and reduces builder callbacks.
Benefits to the community: Conservation of water resources, management of waste and storm water, Provide/maintain affordable housing and maintain affordable and reliable energy resources.
Where do you go from here? Here are two of the many websites that may be useful: www.floridagreenbuilding.org and www.usgbc.org
Green products, businesses and homes are in demand. Home Depot and Lowe’s are handling more Green products. Manufacturers, Distributors and Business owners see the value of going green to supply the upcoming demand. Consumers want to purchase Green homes and they need builders with knowledge and expertise to build them.
Don’t be stuck in the past. Look positive to the future. I believe our greatness lies in our continued ability and willingness to change.
Byron L. Mangis, J.D.
Byron
Mangis, Business Intermediary, earned his Juris Doctor Degree from Western States University College of Law
and his Bachelors Degree from California State University. His professional
background includes business ownership, Director Position in food
distribution and manufacturing, capital equipment financing, mortgage
banking and VP of a top 20 home builder mortgage company. You
can contact Byron Mangis at
bmangis@pbbi.com or at (888) 287-7763.
