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19 Green Terms Every Real Estate Agent Should Know


In today’s rapidly changing real estate landscape, sustainability and eco-consciousness have become paramount considerations for both buyers and sellers.

As our world grapples with the challenges of climate change and environmental degradation, the real estate industry is evolving to meet the demands of a more environmentally aware clientele.

In this article, we delve into the essential “green” terminology that every real estate agent should be familiar with.

From energy-efficient homes to green certifications, understanding these terms is not only crucial for staying competitive in the market but also for contributing to a more sustainable future.

So, whether you’re a seasoned real estate professional or just starting in the industry, let’s explore the vocabulary that will help you navigate the ever-growing world of green real estate.

19 Green Terms Every Real Estate Agent Should Know

Here’s a breakdown of the different certification systems for energy-efficient homes to help you navigate some of the terminology.

  1. Energy Star: The Energy Star program is overseen by the U.S. Environmental Protection Agency. Products such as refrigerators, light bulbs, and furnaces can earn Energy Star certifications. Separately, homes can be Energy Star–certified through an independent inspection.
  2. Geothermal: Geothermal power uses heat from the earth to generate electricity. This is a clean, renewable power source. Geothermal energy is harnessed with a Ground Source Heat Pump (GSHP) to tap the stored energy beneath the planet’s surface. These pumps can be used to provide heating, cooling, and hot water for residential and commercial buildings.
  3. Green Home: The term may seem vague, but according to the National Association of Home Builders, a home qualifies as green when it conserves water and other natural resources, is energy efficient, uses recycled or sustainable products, and protects indoor air quality. It’s used to describe a home that’s designed to be environmentally friendly, including energy and water efficient, healthy and more.
  4. HERS index: The Home Energy Rating System is an index measuring a home’s energy efficiency. An average home built to current industry standards for energy efficiency will have an index of 100. A lower score indicates higher levels of efficiency (for example, a home with a score of 70 is using 30 percent less energy than the average home). The opposite is true with homes that score higher 100. This index is overseen by RESNET.
  5. Indoor airPLUS: This program is also administered by the EPA. Homes that go above and beyond the Energy Star requirements by incorporating additional features to combat moisture, mold, pests, and pollutants can earn this label.
  6. LEED: The United States Green Building Council is the agency that bestows Leadership in Energy and Environmental Design certifications on environmentally friendly buildings and projects. The highest certification a building can earn is “LEED platinum.” Projects earn points based on numerous categories such as indoor air quality and water efficiency. More points add up to a higher certification level.
  7. Light Emitting Diode (LED) Bulbs: A light-emitting diode (LED) LED Light Bulb photo by trenttsdis a semiconductor device that glows when an electric current runs through it. Used as lighting, these wonders of science last up to 50 times longer and use one-sixth the energy of incandescent bulbs; and last five times longer and use half the energy of CFLs. Their major Eco-friendliness and other advantages make them ideal for home lighting and many other uses.
  8. Low-E Windows: Good for any climate, Low-E windows are coated with layers of microscopic metallic oxide that provide great insulation. Application on outer panes blocks heat in warm climates while inside pane application helps to trap heat in cold climates. Low emissivity (low e) – actually low thermal emissivity – is a quality of a surface that radiates, or emits, low levels of radiant thermal (heat) energy. All materials absorb, reflect and emit radiant energy.
  9. National Green Building Certification: Overseen by the National Association of Home Builders, this program helps residential building professionals develop and build sustainable projects. Buildings can earn bronze, silver, gold, or emerald certifications. At the Emerald level — which is the highest certification a project can earn — a building “must incorporate energy savings of 60 percent or more.”
  10. R-Value of Insulation: An R-value indicates an insulation’s resistance to heat flow and the R-value measures the effectiveness of insulation materials. The higher the R-value, the greater the insulating effectiveness, The higher the number, the better the insulation power and the lower your heating and cooling costs. Spray foam is an example of a type of insulation with a high R-value.
  11. Radiant Barrier: Radiant barriers are installed in homes — usually in attics — primarily to reduce summer heat gain and reduce cooling costs. The barriers consist of a highly reflective material that reflects radiant heat rather than absorbing it.
  12. RESNET: The Residential Energy Services Network is a not-for-profit corporation that develops industry-wide standards and rules for energy efficiency ratings and certification systems for buildings. In addition to overseeing the HERS index (see below), RESNET certifies contractors of all types, including builders, roofing and siding professionals, and remodeling contractors.
  13. SEER Values: The efficiency of air conditioners is often rated by the Seasonal Energy Efficiency Ratio (SEER) which is defined by the Air Conditioning, Heating and Refrigeration Institute. The higher the unit’s SEER rating the more energy efficient it is.
  14. Solar Homes: a generic term meaning that energy from the sun is being used for something in the home. This could be solar hot water, solar hot air, solar electric or passive solar.
  15. Solar Panel: Also known as a photovoltaic module or photovoltaic panel, a solar panel is an interconnected assembly of photovoltaic cells that convert sunlight to electricity. To create an adequate amount of electricity, often several panels are joined into what is called a solar-panel array. Usually the array is connected to a battery to store the power for use at night or on cloudy days. An inverter and voltage sensing transfer switch is required to create the proper electric current for home use. Solar panels can be mounted on a rooftop or be freestanding.
  16. Solar Water Heater: Simply put, it uses the sun’s energy to partially or completely heat your household water supply. Because it is difficult to store heat for long periods— and you may want hot water at other times than sunny days—usually a backup heating system is required. There are several types of passive and active models, including batch, flat-plate and evacuated tube collectors.
  17. Tankless Water Heater (AKA Demand, On-Demand or Instantaneous Water Heater): A traditional hot-water tank uses energy to keep water warm even when it’s not needed, making it a relatively wasteful household fixture. With a tankless water heater, whenever a hot-water tap is turned on, cold water is instantly heated as it flows through a small heating unit, thus avoiding wasted energy. Also called “demand” or “instantaneous” water heaters, they achieve the greatest efficiency gains when used in a household with lower than average hot-water consumption or when installed at each hot-water outlet.
  18. Volatile Organic Compounds (VOCs): Don’t be fooled because “organic” is part of the name. These compounds are anything but eco-friendly, or people-friendly for that matter.VOCs are invisible gases, most often emitted by household paint, furniture and carpets, which are known to be detrimental to human health. They cause problems such as eye and nose irritation and even liver damage. You should be sure to search for low or no-VOC products, which are becoming increasingly available.
  19. Xeriscaping: This approach to lawns and gardening utilizes a diverse variety of native, climate-friendly and/or drought-tolerant plants while taking measures to avoid water runoff and evaporation. Because of this, xeriscaping requires little to no supplemental irrigation and is supremely eco-friendly. Xeriscaping is an essential consideration for desert areas, like the American Southwest, where large populations are living and water supplies are dwindling.

Conclusion

In a world where environmental concerns are at the forefront of public consciousness, real estate professionals cannot afford to remain uninformed about green terminology and sustainable practices.

As our society increasingly prioritizes eco-friendly living and energy efficiency, real estate agents play a vital role in helping clients make informed decisions.

With the knowledge of these 19 green terms, you are better equipped to guide buyers and sellers through the intricacies of green real estate.

Moreover, your commitment to sustainability not only boosts your credibility but also contributes to the global effort to mitigate the impacts of climate change.

As the real estate industry continues to evolve, incorporating green practices and principles is not just a trend but a necessity.

Staying informed about these green terms is a forward-thinking approach that will not only benefit your clients but also position you as a responsible and knowledgeable agent in a world where the green movement is here to stay.

Embrace the change, expand your green vocabulary, and become a real estate agent ready to lead in a more sustainable future.

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