The Energy (R)evolution
by Leonard Steinberg
We are in the midst of a rather exciting revolution. It started decades ago when in 2006, US President George Bush – a Texan – boldly claimed: “America is addicted to Oil”. That was a startling admission. Now Texas – the US’s largest oil producer – produces about 7,352 megawatts of new wind, solar and energy storage, the most in the US. The runner-up, California, produces about 2,697 megawatts. I seriously doubt oil is going away, but it is incredible to witness how we are in the midst of a massive transition to more, cleaner (and possibly cheaper) energy.
We are experiencing a massive transformation in our cities, states, towns – and homes – as electric vehicles will shift issues around ‘filling up’, charging stations, power storage, air and noise pollution, energy use, and geopolitical risks associated with energy-related commodities. Auto executives say more than half of U.S. car sales will be EVs by 2030….that’s very soon! Imagine quiet garbage trucks and delivery vehicles in bigger cities. Quieter highways. Our entire infrastructure will need to be updated, not unlike the internet and cable TV which required similar changes decades ago. We are also seeing a rapid growth in Solar use amongst individual homeowners, buildings and corporate America that is adding massive swaths of energy producing entities to buildings and warehouses…..not just because they want cleaner air: Many are doing so for PROFIT and SAVINGS, possibly the best motivator of all.
Around 50% of a home’s energy use is for heating and cooling. The average US home has around 40 lightbulbs…..switching from 60 Watt incandescent bulbs to 8 Watt LED’s reduces lighting energy consumption by 90%! The EPA estimates that the average homeowner can save 15% on heating and cooling costs (11% of total energy costs) by simply adding insulation in attics, crawl spaces, and basement rim joists. A new modern combi boiler is likely to save between 20-35% on gas usage. Ah, the combination of high and low technology can serve homeowners well!
While we currently are suffering from dramatically higher energy costs – mostly driven by Opec’s monopoly – the upside is these higher costs may be the ultimate motivator for towns, cities, states, countries, corporations and individuals to produce their own energy – preferably clean, renewable energy – to reduce the exorbitant healthcare costs (Air pollution from fossil fuels costs each American an average of $2,500 a year in extra medical bills -Reuters) and suffering (Some estimate 100,000-200,000 Americans die each year related to air pollution) associated with pollution. Not to mention the big savings most experience when creating their own clean energy. Ask Walmart that has become a power company creating a big chunk of their own energy usage. Ikea reduced its outside energy use by 57% at a Baltimore location. The rooftops of US big-box stores offer enough solar potential to power the equivalent of 8 million American homes…. Homes with (attractive) solar generation now sell for a premium in areas. Lots has to be done to make solar more attractive for homes and integrated rooftiles seem to be the best solution but they still require some refinement.
Most revolutions are a bit messy and can hurt. Governments sadly mostly don’t plan in 10 and 20 year segments, remaining more focused on election cycles. We are experiencing this pain right now. But the future is very bright. Soon we may be living in a cleaner, quieter, healthier world. Far from perfect as all energy sources have their downside too. Bravo to our Texan friends and colleagues for setting such a great example for what is possible!
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There is Inventory (less of it these days in most parts!), SHADOW Inventory (those homes and apartments that developers can sell and are for sale but are not officially listed anywhere….and whisper, private listings) …..and then there is FLASH Inventory.
FLASH Inventory is the kind of inventory that often comes to market and is snapped up so quickly it can make your head spin. Sometimes it barely makes it into the MLS systems, although most areas require this. Between the FLASH and SHADOW inventory, consumers would be wisest to work with a professional, on-top-of-it buyer’s agent who can navigate this area of the market – often the market with the greatest opportunity for buyers – efficiently and effectively. Often a buyer’s agent who is both highly competent AND liked by their peers is most effective.
Recently, we did a sale on a property that had an accepted offer within hours. Not only did the seller like the terms and qualifications of the buyers, but they (and I) also trusted their buyer’s agent implicitly, who also did what was necessary price- and terms-wise to secure the deal, making his buyers instantly the most likable, desirable buyers who also happened to be extremely qualified with zero contingencies because their agent had already done extensive due diligence on the building and unit. He had prepared his buyers with all the comps, knowledge and insights needed to make a smart and QUICK decision, explained valuation thoroughly and factually. His buyers trusted him AND I trusted him….as did my clients. These buyers moved FAST, they were 100% prepared …AND 100% well represented. Strong, smart, professional representation matters (Price does too). AND the likability, trustworthiness and ethical strength of the agent.
In a world where often the best properties trade in a flash, having outstanding representation can make all the difference. Often buyers who enter these scenarios make points and fight battles not worth fighting. Often it is the buyers who lose arguments – or avoid these sometimes petty details – who are left winning the home. FLASH!