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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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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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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- 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
57
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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