Selling Homes Lean and Green

Selling Lean Selling Lean and Greenand Green

Rick WilliamsApril 2015

Class Objectives

• How to communicate Energy Efficiency / Green Building to Clients.

– Energy Assessments & Upgrades

– Green MLS: Listing & Buying

• How to upgrade older homes to compete with newly built Net Zero Homes

• Resources and next steps

Why Lean and Green Why Lean and Green

Save MoneyNAR’s May 2011 study

• 88% of homebuyers thought heating and cooling were important

Poor duct sealing can lose 20% of conditioned air

Proper insulation reduces heating and cooling costs

Improve Home Comfort

• Energy efficient windows can make homes quieter and more attractive at the same time

• Seal air leaks to reduce drafts and keeps warm air from escaping during the winter and cool air in the summer

• Proper HVAC ducting provides comfort in all rooms

Create a Healthier Home

• Combustion safety tests ensure all gas appliances are venting correctly – providing home owners peace of mind

• Sealing vents and ducts saves energy and improves air quality

Crawlspace Cleaned & Air Sealed

Green Labeled Homes sell at a 9% Premium

• Study of 1.6 million homes in CA• UCLA and UC Berkeley researchers• Green Labeled homes sell for 9%

more– LEED for Homes– EnergyStar– GreenPoint Rated

CA Home Energy Rating Disclosure

• California Civil Code 2079.10

• Realtors and Brokers must inform buyers in each transaction & sign

• HERS Whole House Audit option• Demonstrate energy value of home• Suggest energy assessment for potential energy upgrade before

move in

Why do we need to renovate buildings?

• Homes built before 1974 (Title 24) had no energy efficiency standards– Drafty70% of CA stock– Unhealthy– High energy costs

• Energy costs increase 4 to 5% each year

• Plug loads continue to increase

Government Mandates

• California’s Goals– Energy Upgrade California– New construction to be Zero Net Energy

by 2020 Residential & 2030 Commercial

• Berkeley RECO goes BESO– Prescriptive list of energy & water

conservation at time of sale or remodel

• Energy Audits at time of sale??? Someday.

Summary Why EE and Green Building?

• Save money …. Energy costs inc. 4 to 5%

• Healthier .. Indoor Air Quality

• Sell homes faster and for more $

• Home Energy Rating Disclosure

• Government Mandates increasing

Energy Energy AssessmentsAssessments & Upgrades & Upgrades

What is an Energy Upgrade?

An Energy Upgrade comprehensive, whole-house approach to improving energy efficiency and home comfort, while helping to protect the environment.

• Moisture leaks• Potential air leaks• Hidden attic bypasses• Crushed, ineffective

ductwork

Proper inspections can reveal:

Why Get an Energy Assessment?

• A blower door test to determine your home’s air leakage which contributes to higher energy costs

• Thermographic camera tests that use infrared images to assess the effectiveness of your home’s insulation

• Combustion and safety testing to detect carbon monoxide and gas leaks

What Is a Home Energy Assessment?

A Home Energy Assessment is a series of advanced, diagnostics tests performed to understand what energy efficiency investments can reduce your energy use:

• Inadequate attic insulation

• Improper insulation• Important thermal issues

Why Get an Energy Assessment?

Proper inspections can reveal:

Who Should Get an Assessment?

• Homeowners who want to save money on energy bills/stop wasting energy

• When HVAC goes down or PV goes up on roof for best sizing:

• (HVAC repair, solar panels)

• With home comfort & health issues (drafty rooms, leaky windows, etc.)

Energy Upgrade Loading Order

1. Air Sealing2. Thermostat set points3. Insulation / Ventilation4. Heating & Cooling5. Water Heating6. Lighting7. Old Appliances8. Windows & Doors

Solar Panels

Impact Energy, Inc.18

Energy Upgrade California Rebates

•Rebates per decrease percentage of energy modeled» 20% $2,000» 30% $3,000» 45% $4,500

•For more information: energyupgradeca.org•Must use a Participating Contractor for rebates

• Energy Upgrade California offers Whole Home rebates to reward for energy efficiency needs as a system instead of piece by piece.

Energy Upgrade Steps to Rebate

1. Find Participating Contractor2. Complete Home Energy Assessment3. Review Findings & Recommendations4. Review & Sign Contract5. Secure Financing if needed6. Install Energy Efficient Improvements7. Work is inspected8. Rebates to homeowners

Energy Upgrade Examples

• Claremont home

• Grass Valley

Green MLS & Competing Green MLS & Competing with New Homeswith New Homes

Green MLS @ MLSlistings

• Green / energy fields exist now• MLSlistings to expand Green MLS• Energy upgrade items listed• Sellers: Distinguish your listings• Buyers: eco conscious clients

C

KB Homes Energy Efficiency

SHEA XERO ZERO NET ENERGY

• SOLAR POWER SYSTEM• DUAL-PANE, LOW-E VINYL WINDOWS• JENN-AIR® ENERGY STAR® APPLIANCES• BLOWN-IN WALL INSULATION• INSULATED GARAGE DOORS ???• DIGITAL PROGRAMMABLE THERMOSTAT• CFL BULBS• OCCUPANCY SENSOR SWITCHES

Seller’s Green Staging Advantage

• HOW TO COMPETE WITH NEW HOMES• “Provide an Energy Assessment to buyers

– Complete disclosure– Demonstrate path to energy efficiency with

the contractor recommendations

• Install CFL light bulbs & LED• Install Programmable thermostat• Provide 12 months utility bills• Show EnergyStar labels on new appliances

Buyer’s Search for best home

• Establish buyer’s priorities– Energy costs, air quality, health

• Define key criteria to search MLS– Programmable thermostat– Insulation– Sealed crawlspace

• Provide energy upgrade pathway with renovation funding– Insulation– Air sealing etc.

Green Labels Green Labels and Ratingsand Ratings

What is HERS ?

Home Energy Rating System administered by the California Energy Commission (CEC)

• Estimates and compares home energy efficiency• Identifies energy-saving improvements

• Reduces risk by providing full disclosure of energy usage

• Completed by a HERS Rater or Auditor

• Required for Energy Efficient Mortgage EEM

31

Sample HERS Rating Certificate

32

Home Energy Rating Score

Energy Efficiency Levels of Rated

Features

Energy Consumption and Operating Costs

Other Green Labels

• LEED for Homes– High end rating from USGBC

• GreenPointRated —Rating system used by most CA

municipalities BuildItGreen • EnergyStar

—EPA standard

Securing Securing AppraisedAppraised

Green ValueGreen Value

Will this increase my home value?

• Comfort, health & – reduced energy cost

• Key Aspects– Green MLS – Green certification– Lower Utility bills

• Study shows 9% increase in price

Securing Appraisal Value

• Presenting documentation to appraiser– Energy Assessment– Invoice Furnace– Showing insulation

• Green Certification attached to MLS• Green documentation for all features

– This avoids GreenWashing

Net Zero HomesNet Zero Homes

Net Zero Energy

• California Law• All new Construction to be Net Zero

Residential 2020Commercial 2030

• Very efficient system design– HVAC, Windows, Insulation

• Renewable power needed

Certified Net Zero Home in Willow Glen

3,200 sf comfort w/ no energy costs Mercury News 3.27.14

What is A Net Zero Home?

• Whatever energy is used is offset by renewable power

• Key aspects of the design– Thick insulation– Triple Pane windows– PV on the roof to offset use– Heat Recovery Ventilators

Take Away Statements

• Green building includes energy efficiency, healthy and comfortable homes

• Energy Assessments show how to increase comfort while decreasing energy costs

• Municipal and State laws are increasing • All new homes will be NetZero by 2020• Older homes get rebates by decreasing energy

use and becoming more comfortable

Summary and Role Play

Green Building & Efficient Homes

• Green Building means – Comfort throughout home– Healthy air– Lower Energy Costs

• Can include Renewable Energy such as Solar

Energy Assessments

• Whole house evaluation of building performance not just particular systems

• Blower Door measures air flow and leaks causing drafts and energy loss

• Thermographic camera assesses leaks in insulation

• CO2 detectors alert to gas leaks

Upgrade of Older Home

• Review past 12 months utility bills• Order Energy Assessment• Show Upgrade Pathway• Install CFLs and LEDs• Show EnergyStar labels on appliances

Assemble your Dream Team

• Owner as Project Manager

• Building Performance Contractor– Trained & Qualified Energy Upgrade

• Mortgage specialist– Experience in 203K

• Energy consultant– HERS certified CALCERTS

Selling Lean and Green

• Stay Ahead of the Curve

• Build client rapport with “green” knowledge

Utility costs + Comfort + Health

• Sell homes quicker and for more $

Contact info

Rick Williams831.247.5573

[email protected]