Transcript Slide 1
Greening Your Home for Resale
by
Beth Johnson
REALTOR®, Keller Williams Realty
EcoBroker Certified, LEED AP
Certified Green Professional, NAR GREEN Designee
Principal, Smart Green Now Consulting
(www.BethJohnson.com)
Beth Johnson:
“Connecting and respecting
the buyer, seller, builder, community, Earth”
• First green-credentialed “Quadruple Crown” Realtor on
the planet:
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LEED AP (USGBC)
EcoBroker Certified
Certified Green Professional (NAHB)
GREEN (NAR )
• First Texas REALTOR® to earn either LEED AP or
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EcoBroker
Specialty is greenbuilding:
– New construction: land / architect / builder
– Resale
• First North Texas REALTOR® specializing in greenbuilding
• 29 yrs. as professional with environmental advocacy
organizations
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www.BethJohnson.com
Outline
• Will green upgrades help sell the home?
• How are other markets trending?
• Do we have North Texas data?
• Green upgrade certification,
documentation for resale
• Searchable green items in N TX MLS
• Green upgrades that make
physical, economic and marketing sense
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www.BethJohnson.com
Green homes are better for people,
pocketbook, and the planet
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Energy efficient, lower bills
Healthier indoor air
Lower maintenance
Comfortable, quiet
Reduced water usage
Resource efficient
Less air pollution
Improved resale
www.BethJohnson.com
Will green upgrades help the sale?
• Don’t do them merely for resale
• May have multi-year time horizon
• Most home improvement projects
– don’t recoup full value in increased sale price
– may bring quicker sale
• Time is money
• Reduced DOM avoids stigmatizing a listing,
reducing eventual price
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www.BethJohnson.com
Remodeling Magazine, 2010 Cost Vs. Value Report,
West South-Central Region, Midrange Price
Project
Job Cost
Cost Recouped
Roofing replacement
$17,438
63.8%
Deck addition (composite)
$14,695
64.7%
Bathroom remodel
$14,536
70.5%
Window replacement (vinyl)
$ 9,515
71.5%
Major kitchen remodel
$53,452
73.8%
Minor kitchen remodel
$20,321
74.2%
Garage door replacement
$ 1,145
98.7%
Entry door replacement (steel)
$ 1,079
116.6%
Entry door replacement (fiberglass)
$ 3,313
65.7%
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www.BethJohnson.com
Will green upgrades help the sale?
• Location, condition, price
• “Improvement” is different from “make-ready”
• Present the home market-ready
• Clean, good repair, move-in-ready
• Professionally executed 12 steps to market-ready
• Green story correctly and enthusiastically presented
– by qualified, experienced REALTOR®
• Better value for the price
• What is your competition?
• New homes
• Existing homes
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www.BethJohnson.com
Most homes have some green features
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www.BethJohnson.com
Additional Features, Updates, Improvements
1234 XYZ Lane
Dallas, TX 75252
2010 Updates include:
• New ceramic tile
• New carpet throughout
• Fresh paint throughout (inside and outside)
Energy-Efficiency/Green Features:
• Climate-responsive design to control unwanted summer radiant heat gain
through windows
– minimized unshaded west-facing windows to reduce unwanted summer
heat gain & to lower air-conditioning bills
– no unshaded south windows
• Radiant barrier roof decking to reduce air-conditioning bills (2009)
• Durable Class 4 impact-resistant roof (2009) garners 30% premium
discount on State Farm insurance
• Flow-through ventilation for attic with air inlets low on roof and peak
exhausts (2009)
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(continued)
• Double-pane windows throughout (except in laundry room and
outer sunroom windows), including 4 that were replaced in 2007
with durable, energy-efficient Energy Star qualified low-E vinylframe windows with Sears lifetime warranty
• Ceiling fans in kitchen, dining room, bedrooms provide comfort at
higher thermostat setting to save on summer cooling bills
• Programmable thermostat
• 12-SEER AC (1999)
• Expansive, attractive pebblestone covered patio outdoor living area
reduces need for conditioned space
• Generously naturally daylit design provides pleasant indoor spaces
and reduces daytime heat and electricity use from electric lights
• Low-VOC inside paint throughout
• Hardie cementitious siding holds paint longer & resists moisture, rot,
insects, hail, fire
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Competition from New Homes
• Home Energy Rating
System
(HERS Index)
• A common language
• Govt. overseen
• Certified raters
• Tested, inspected
Courtesy: RESNET
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Competition from New Homes
• ENERGY STAR® for Homes, U.S. EPA
– HERS 85 or below
– Air-tight construction and ducts
– Insulation: effective, properly installed
– HVAC efficient and right-sized, not oversized
– Lighting/appliances: efficient
– Windows: high-performance
– Soon to require HERS 70-75, more robust
HVAC and water management verification
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Competition from New Homes
• ENERGY STAR® for Homes
– 1.2 million in U.S. since 1995
– 9,000 builder partners
– TX is #1 state
• 337,000+ to date; 30,000+ in 2010
• 843 builder partners
• More than next 7 states combined
• 43% market penetration
– Houston & DFW are top 2 U.S. markets
– DFW
• 114,000+ to date
• 8,000+ in 2010
• 177 builder partners
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www.BethJohnson.com
Competition from New Homes
• Green Built Texas®, HBA
– HERS 83 or below (transitioning to 75)
– ENERGY STAR® certification
– Additional base-level requirements and
options in:
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Indoor air quality
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Water efficiency
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Materials efficiency and durability
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Site protection and waste reduction
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www.BethJohnson.com
Competition from New Homes
• Green Built Texas®
– 6000 homes completed since 2006, including
• 114 in Plano
• 236 in Frisco
• 300 in Allen
– 400 under construction
• 12 in Plano
• 28 in Frisco
• 17 in Allen
– 70 builder partners, including
• 12 volume builders
– 10+% of DFW market in ‘08
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Competition from New Homes
• LEED® for Homes, USGBC
– ENERGY STAR® certification
– Robust planning & verification
– Stringent mandatory requirements
– Rewards top-tier construction practices in
greenbuilding categories
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www.BethJohnson.com
Competition from New Homes
• LEED® for Homes
– 10,000+ homes certified since 2008
– 38,000 in process
– Texas has 500 certified
• Half of which are in N TX
– Major DFW volume builder just committed to
100% LEED here in its signature brands
• 300 homes per year
• Largest builder of single-family LEED homes in TX
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www.BethJohnson.com
Competition from New Homes
• Frisco 2001:
– HERS 83 + other GB measures
• Dallas 2009/2011:
– HERS 85 + other GB measures
– GBT or LEED or equivalent
• Plano 2009:
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HERS 85, tested, inspected
Drought-survivable landscaping
Efficient hot-water supply
Return air path for bedrooms
www.BethJohnson.com
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www.BethJohnson.com
Market Trends
• 3rd-party certified green homes sell faster and for more money
• 10.5-28.9% higher $/SF, 24% less time on market (Seattle)
• 20.5% higher $/SF, 9.5% less time on market (Portland)
• McGraw-Hill SmartMarket Report (Fall ’08)
“We’re crossing the tipping point for green home building. Concerns
about energy costs, health and even resale value are adding up….
Green homes are here to stay.”
80% of respondents believe green homes are more economical,
offer better and healthier places to live.
70% of buyers are either “more” or “much more” inclined to
purchase a green home over a conventional home in a down
housing market.
“Making homes greener is now the number one reason for home
improvement (42%) over remodeling for comfort reasons (34%) or
to improve appearance (24%).”
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www.BethJohnson.com
Competing against New Homes
• Existing homes may compete well on…
– Location
– More modest size
– Mature trees
– Price
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www.BethJohnson.com
Competing against Existing Homes
• $10-$25 increase in resale value for every $1
decrease in annual utility bills (Appraisal Journal,
1998)
– ($1,000/yr. energy savings = $10K-$25K higher sales
price)
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www.BethJohnson.com
North Texas data still accumulating
• Comps are lacking
– New-home and retrofit programs are recent
– MLS green update is recent
• Appraisal environment challenging
– GB education is new
– “Value” is not same as your cost
– “Value” is what others’ lenders say it is
– Beware of “over-improvement”
• Functional obsolescence
• Remodel $/SF > new-construction $/SF
• Teardowns
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www.BethJohnson.com
Start with a RESNET-certified rater
• Make green upgrades that are costeffective
– for your home
– for your time horizon
• They won’t hurt resale
– Can differentiate the listing
– May increase perceived value
– Data will come
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www.BethJohnson.com
Green Upgrade Certification
for Retrofitting Existing Homes
• “Regreen”, USGBC guidebook and training
• Green Built Texas
• Home Performance with ENERGY STAR®
– Process backed by U.S. EPA and DOE
– 30 locations nationwide
– 75,000 families have improved their homes
while helping the environment
– 2 locations in TX:
• Austin Energy
• Oncor Service Area
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www.BethJohnson.com
Oncor Service Area:
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www.BethJohnson.com
Home Performance with ENERGY STAR®
• Whole-house approach to making your home:
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More comfortable
Reducing its energy use
Improving indoor air quality
Creating a healthier home
• Certified contractors approved by ENERGY STAR®
– (31 in North Texas)
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State-of-the-art equipment
Best-available building science
Professional diagnosis
Recommendations for improvements
Comprehensive
Cost-effective
You decide what improvements to do
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www.BethJohnson.com
Home Performance with ENERGY STAR®
• Typical improvement measures:
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Sealing external air leaks
Attic and perhaps wall insulation
Solar window screens
Duct sealing and insulation
• 20-40% leakage typical
– Duct system efficiency and air-balance
– High-efficiency (SEER) ENERGY STAR® air conditioner
• May replace if > 10 years old
• Half perform poorly (up to 30% less efficient than advertised)
due to incorrect installation
– Oversized
– Incorrect refrigerant charge
– Mismatched indoor/outdoor units
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www.BethJohnson.com
Home Performance with ENERGY STAR®
• Typical improvement measures (cont.):
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www.BethJohnson.com
Home Performance with ENERGY STAR®
• Typical improvement measures (cont.):
– High-efficiency hot water heater
– ENERGY STAR® lighting and appliances
– Energy-efficient windows – (maybe)
– Solar hot water – (maybe)
– Solar photovoltaic -- ??
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www.BethJohnson.com
Home Performance with ENERGY STAR®
• Benefits:
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Fewer drafts, modern comfort
Consistent temperatures across rooms
Better ventilation and humidity control
Lower utility bills
• Financing:
– $1500 cash incentive from Oncor
– Third-party financing
– Federal and state tax credits for homeowners:
• www.Dsireusa.org
– 203K FHA loan
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www.BethJohnson.com
Documentation / Disclosure:
• Disclose any inspection last 4 years
• Pre-work, post-work HERS report
• Test-in, test-out
• All receipts, manuals, warranties
• Utility bills before and after
• (Reminder: lead-based paint remodeling)
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www.BethJohnson.com
Austin’s Energy Conservation and Disclosure (ECAD)
Ordinance
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2009
Single-family site-built homes 10 years old or older
Sellers required to have an ECAD audit
Provide copy to prospective purchasers & Austin Energy
Air sealing in plumbing areas & weatherstripping
Attic insulation
Duct performance
HVAC efficiency
Windows: shading, low-E glass, solar screens
www.BethJohnson.com
ECAD Ordinance
• Rebates & incentives
• Exempted if participated in
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– Home Performance with ENERGY STAR® or
– Equivalent Austin Energy program
– Within last 10 years and
– Show at least 3 energy efficiency
improvements
Variance if binding agreement to remodel within
6 months & get an audit
41% of sellers felt ECAD helped sell the home
www.BethJohnson.com
N. TX MLS green update—2008
• Energy Efficiency
Tankless Water Heater
13-15 SEER AC
Programmable Thermostat
Double Pane Windows
ENERGY STAR® Appliances
Low E Windows
90% Efficient Furnace
Foam Insulation
Storm Doors
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Smart Electric Meter
16+ SEER AC
12"+ Attic Insulation
Variable Speed HVAC
Radiant Barrier
Dehumidifier
High Efficiency Wtr Heater
Storm Windows
Ceiling Fans
www.BethJohnson.com
N. TX MLS green update—2008
• Green Certification
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HERS Rated
HERS 0 – 85
HERS 86 – 100
HERS 101+
Energy Star Certified
LEED Certified
LEED Silver
LEED Gold
LEED Platinum
Green Built N. Texas
NGBP - National Green
www.BethJohnson.com
N. TX MLS green update—2008
• Green Features
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Solar Electric System
Solar Hot Water
Geo-Thermal HVAC
Drought Tolerant Plants
Low Flow Commode
Low Flow Fixtures
Recirculating Hot Water
Rain/Freeze Sensors
Wind Power
EF Irrigation Control
Rain Water Catchment
Energy Recovery Ventilator
Mechanical Fresh Air
Enhanced Air Filtration
www.BethJohnson.com
Third-party inspected, tested, certified:
Blower-door test assures low infiltration of air through the envelope.
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www.BethJohnson.com
Third-party inspected, tested, certified:
Duct-blaster test assures minimal duct leakage.
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www.BethJohnson.com
Courtesy: TexEnergy Solutions
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Insulated attic hatch seal
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www.BethJohnson.com
Wind-washing from soffit vent has removed ceiling insulation.
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Dropped ceiling/soffit’s vertical portion has no insulation.
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Duct joint is severed – severe leak.
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Unnecessary duct length
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Insulation has come off the duct.
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- 13-15 SEER AC
- 90% efficiency furnace
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- mechanical fresh air
- enhanced air filtration
www.BethJohnson.com
ENERGY STAR® appliances
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www.BethJohnson.com
- Doublepane windows
- Low E windows
Multiple panes
Low-E coating
Gas fill
Warm edge spacers
Improved frame materials
.40 or lower SHGC
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- Drought-tolerant plants
- Rain/freeze sensors
- EF irrigation control
Courtesy: TXSmartscape.com
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Extended-warranty fiber cement exterior cladding
Gutters
Rain water catchment
www.BethJohnson.com
75024 Plano, $330 max for existing home, any $ for new
Existing
New
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8
$165-$330K
$330-$679K
Average price
$268K
$528K
Average SF
2912
3405
1987-2004
2010-new
# listed
Price range
Year built
Energy Star
0
0%
4
50%
13-15 SEER AC
3
5%
7
88%
Low E windows
1
2%
5
63%
ES appliances
3
5%
4
50%
Radiant barrier
1
2%
4
50%
90% furnace
0
0%
2
25%
12”+ insulation
4
7%
2
25%
Mechanical fresh air
0
0%
2
25%
Tankless HW
0
0%
1
13%
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www.BethJohnson.com
Summary:
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Why – to help you and the planet
When – ASAP
Who – RESNET-certified rater
How –
– Home Performance with ENERGY STAR®
– REALTOR® specializing in GB
• What –
– Pre- and post-test, HERS report
– Cost-effective energy, durability, IAQ
– All docs incl. utility bills
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www.BethJohnson.com
Upcoming Greenbuilding Events:
• See www.BethJohnson.com
– July 14-15, Dallas – USGBC North TX
Sustainable Showcase
– July 16, Austin – “Green by Design”
Workshop, Austin Energy GBP
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www.BethJohnson.com
Contact info for Beth Johnson:
Beth Johnson
REALTOR®, Keller Williams Preston Rd.
LEED AP, EcoBroker Certified, Certified Green Professional (CGP), NAR GREEN
"Connecting, respecting buyer, seller, builder, community, Earth"
P: 972.732.6000 F: 972.468.7480
Mobile: 214.415.5089
Home office: 972.635.9774
[email protected]
www.BethJohnson.com
www.KWPreston.com
18383 Preston Rd., #150, Dallas, TX 75252
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