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Reframing Passive House: Educating the Market to Drive a Premium Sell-Out

Project: 702 Hancock: 8-Unit Passive House New Development
Location: Bed Stuy
Sell-Out Timeline: 18 months
Pricing Achievement: Average ~8% above comparable units

The Challenge

Selling eight units in a new passive house development presented a unique set of challenges:

  • Unfamiliar Product: Most buyers (and brokers) didn’t understand what “passive house” meant — nor its long-term cost, comfort, efficiency, and health advantages.

  • High Competition: Inventory for new developments in Bed Stuy was abundant, putting pressure on pricing and speed.

  • Time-Sensitive Tax Incentive: All units had to be sold before a hard deadline to qualify for the 485-x tax incentive, creating urgency to sell efficiently without discounting value.

Our Strategy

Rather than compete on price, we positioned the building around value—health, comfort, efficiency, and long-term savings. We centered the campaign on education, engagement, and network leverage.

  • Buyer Education Hub: We built a dedicated website that clearly explained the 7 key benefits of passive house design and how this building delivered on each one. This became the cornerstone of our marketing and the go-to for brokers and buyers alike.

  • Community-Driven Marketing: We hosted community events to build local awareness and positioned the project as a forward-thinking model for healthier, more sustainable living in Brooklyn.

  • Broker Outreach & Enablement: We conducted extensive outreach to our broker network, equipping agents with clear talking points, visuals, and materials that made Passive House benefits easy to communicate to their buyers.

  • Cross-Marketing & Targeted Buyer Matching:  We leveraged our broader portfolio to identify buyers already aligned with Passive House values and introduced them to the project.

  • Building Momentum Through Ownership: As units closed, we connected new owners to one another, fostering a sense of shared mission and community. That momentum helped drive interest and urgency for the remaining residences.

The Results

  • Sold Out in 18 Months: Despite product unfamiliarity and location perceptions, we achieved full sell-through within the required timeframe, meeting the 485-x incentive deadline.

  • Premium Pricing: Units sold for about 8% above comparable properties, underlining the effectiveness of our education-forward positioning.

  • Market Positioning: The development is an example of passive house success in a market where most buyers had never encountered the concept before.

For context: In Brooklyn, an 8-unit new development typically takes ~24–36 (???) months to fully sell through, especially in periods of elevated inventory. Achieving a complete sell-out in 18 months—while outperforming comparables on price—put this project well ahead of market norms.

Why It Worked

This success wasn’t just about listing units — it was about changing buyer perception:

  • We didn’t assume buyers already valued passive house; we built that value in their minds.

  • By empowering brokers with knowledge and tools, we turned what was once an obstacle (product unfamiliarity) into a differentiator.

  • Community events and buyer engagement kept momentum high — which was critical when inventory was abundant.

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