Definition of "What is Greenwashing?"

Undoubtedly, the 21st century has turned increasingly eco-conscious. Nowadays, many consumers prefer purchasing green and environmentally-friendly products even at a higher price. 

A genuine and well-intentioned trend with catchy buzzwords took us over. You can choose eco-conscious TVs, and you can show off with an environmentally-conscious design on a budget to your friends. Did we suggest that you can also present them with eco-friendly gifts?

Companies exploiting consumers’ care for the environment

Business enterprises use trendy slogans and good faith to achieve higher profit margins. Yet, these labels do not cover reality. Unfortunately, such phony companies saw an unprecedented business opportunity in marketing and distributing such products, which only claim to be green.  

Whitewashing sells a misleading fantasy.

What is the meaning of greenwashing? The term greenwashing defines a process of presenting a false impression and, ultimately, information about how specific goods or services are environmentally-friendly. You may also encounter products that proudly offer themselves as energy-saving and or prepared based on recycled materials.  

However, these affirmations prove unsupported by scientific facts upon closer inspection. Mischievous companies deceive gullible consumers and undermine the honest reputation of those businesses that do produce green products. Therefore, specialists deem the practice of greenwashing ethically questionable.  

Greenwashing in real estate

We should draw attention to the greenwashing scam that has taken the real estate market by storm. Eco-friendly property portfolios became a priority for the next generation of house-hunters. Besides, they chose their motto ESG, meaning environmental, sustainability, governance. However, new real estate investors often bump into homes that agents market as green, yet they are anything but. Inexperienced home buyers are liable to become victims of real estate greenwashing.

How will real estate greenwashers try to convince you?

There are slight chances that house-hunters may bump into greenwashers working in the housing market. On the one hand, architects and construction workers can erroneously claim that they’ve built a green building. On the other hand, realtors can wrongly state the heightened sustainability of “smart” real estate. 

These agents designed their marketing strategy, presuming that customers don’t clearly understand green technology; thus take every word for granted. The gimmick will convince you that the building will save you energy and money by, sometimes, featuring only a couple of LED bulbs and some other fancy appliances. Consequently, you’ll end up investing in a house that, by government standards, fails to be eco-conscious. 

Nonetheless, housing agents might not happen to know the so-called Home Energy Rating System (HERS) defining green standards. The system tests a property’s energy performance on an index. The lower the figure goes, the more energy your home saves. Besides, it can reveal construction imperfections, insufficient equipment installation, and poor insulation.

To which property aspects do they apply greenwashing?

Properties claiming to enjoy the advantages of having a low carbon footprint, energy- and water sufficiency don’t always correspond with reality. And these false ads often conceal an even more horrific truth. 

Greenwashing pretends to use eco sound building materials. However, they might have employed harmful ones instead. Some real estate sellers might wish to hide that they built their house with red-zone toxic building materials. For instance, one could trace wood treatments, asbestos, halogenated flame retardants, etc., in their foundation and walls. These materials discharge poisons and can affect the flooring, insulation, paints, lighting, and wiring. 

Luckily, MLS listings today accurately describe whether an available home is certified eco-conscious or not, using such programs as Built Green or Energy Star. Thus, parties involved in a property transaction can efficiently pick up a fight against greenwashing.

Methods to combat falling victim to greenwashing

First and foremost, falsely marketed properties won’t trick you with the assistance of these genuine local real estate agents and professional home inspectors! 

Secondly, homes are often subject to performance tests. Investigating the results of these tests can, by all means, serve your best interests! You can also hire a private performance-testing entrepreneur or general contractor to double-check the house’s alleged green building materials, air quality, energy efficiency (applied to air conditioning and lighting), low emittance windows, water-preserving appliances, proper thermal insulation, etc. Besides, you can examine whether they supplied building materials from sustainable forests. 

Thus, homebuyers can decide upon the validity of the property’s fortes, assess problematic areas, and deliberate on doable solutions.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Questions

Popular Real Estate Glossary Terms

Right to property depends on some occurrence. ...

Placed by the federal government on a individual's real property for federal estate tax or income tax law violations. In the case of a federal estate tax lien, upon the owner's death, the ...

Increase in the value of property caused by inflation. For example, John buys a home for $150,000. Because of inflation, the home is worth $200,000 five years later. The inflation equity in ...

Articles of personal property installed by a tenant under the terms of a lease for purposes of use in his or her trade or business, Trade fixtures are removable by the tenant before the ...

Individual making the payments in a mortgage or pledging a mortgage or property. ...

A corporation that owns housing units and whose tenants purchase shares in the corporation equivalent to the value of their housing unit. Also called co-ops. ...

Principal highway designed to divert traffic around a major urban area in order to limit congestion and expedite traffic flow. A belt highway is connected to the urban area by main highways ...

The transfer of a property deed from one person to another without publicly recording it. The recording of a deed in a public office gives constructive notice of the act of the sale and ...

Rights granted to owners of property restricted to conservation use, historic preservation, or some other low density function to sell to other landowners allowing them to develop their ...