EFFICIENT HOMES MAY BE MORE VALUABLE THAN OTHERS

We are the first and only builder building energy smart custom home builders. All of our homes are built above minimum code with high-end materials and quality labors. We GUARANTEE that our homes are more energy efficient than any other new or existing home built in Thomasville, GA. 

You simply can't buy a  NEW HOME and get a better RATING then "GUARANTEED".

When insurance companies offer discounts for lower risk customers, you can bet it’s based on reliable evidence. Think lower car insurance rates for drivers with no speeding tickets, and discounted life insurance for non-smokers.

Genworth, the large private mortgage insurance firm spun-off from General Electric, now offers a discount for buyer of energy efficient houses.  (OK – Genworth implemented this policy in Canada — but reports suggest it’s coming to the US market….

Genworth is validating that the risk of loss to the mortgage lender is lower when the borrower is in a more energy efficient house.

Image via Blue Sky Building Systems

The policy makes a ton of sense.  Attributes of an energy efficient house — better air sealing, more insulation, high performance appliances — are attributes of a well-built house. These measures make a house more valuable. If the borrower gets into income trouble and can’t afford the mortgage payments, a more efficient house will likely hold its value better than a house built to lower standards.

And home value is a strong predictor of lender losses — if a borrower has home equity, default is rare because the house can be sold for more than the mortgage. For more on that, see this paper by economist John Campbell.

A more efficient house also means lower energy expenses, so the borrower might not get into income trouble in the first place. And, these lower expenses are one reason an efficient house is more valuable.

A funny thing about the mortgage market is that this kind of policy can be self-fulfilling. The fact that more energy efficient houses are more valuable is a basis for the Genworth policy to give a discount, but it’s also likely to be an outcome of the policy. That is, the discount on mortgage insurance should allow some borrowers to pay more for energy efficient houses and increase demand for those houses among homebuyers. This effect should remind lenders, investors, appraisers, and others how the current, conventional policy can be self-fulfilling in the opposite direction — loan policies that make it difficult for a borrower to borrow more to pay a premium for a more energy efficient house can inhibit the very evidence needed to support policy correction.

While most U.S. mortgage borrowers don’t get private mortgage insurance, the fact that Genworth has adopted this new policy should be a strong signal to lenders, investors, appraisers, and others to continually assess how the value of energy efficiency is reflected in the property value and the loan.

http://www.earthtechling.com/2013/12/efficient-homes-may-be-more-valuable-than-others/

How to Identify a High Energy Performance Home

Capital Home Builders is the only and first custom and energy smart home builder in South Georgia. Our homes come with more features then any other home built in Georgia and South Georgia. We are also the only builder offering Home Energy Rating System (HERS) Rated homes. We are the only builder with Residential Energy Guarantee. We will guarantee your electrical bill for Two Years and if you go over we will pay you back the difference. NO other builder in South Georgia will stand behind their homes like we do. We do not believe in building to minimum code and our homes are proof of that. You may pay 5% to 10% more for a High-Performance home, but with all of the energy savings you will make it back the first 2 years. 

So you’re looking to buy a new home…but not just any home. You want one that’s easy on the environment and uses less energy. A comfortable home that saves you money while reducing your carbon footprint.

In other words, what you want is a high energy performance home.

But how do you know when you’ve found one? I mean, how can you tell if the house you’re viewing is actually a high energy performance home? Is there a way to differentiate between a home that’s energy efficient from one that’s not?

Luckily there is and increasing numbers of builders are using it to market energy efficient homes. It’s called a HERS Index score and hopefully one day soon every house will have one.

Energy Performance and the HERS Index Score

So what is a HERS Index score anyway? The home energy rating system (HERS) was developed by RESNET to help homebuyers compare homes based on their energy performance. For example, when a certified RESNET Home Energy Rater does a home energy rating, they’ll give the home a HERS Index score based on its energy performance.

A standard new American construction home that adheres to current energy guidelines is awarded a default HERS Index score of 100, which serves as a benchmark against which all other homes are measured. A higher HERS Index score translates into a less energy efficient home, and vice-versa. A typical American resale home scores 130 on the HERS Index, making it 30% less energy efficient than a new construction home. On the other hand, if a house gets a HERS Index score of 50, it means that it’s 50% more energy efficient than a standard new construction home. And in Thomasville, GA. a typical new home has a score of 130.

Why the HERS Index Score is Important to Builders

Thanks to the HERS Index and HERS Index scores, for the first time homebuyers can actually get an true understanding about how energy efficient a home really is. This naturally changes the way people are viewing homes they’re interested in and builders have been quick to understand that. Consequently, many are now actively marketing their homes using HERS Index scores to advertise potential savings that homebuyers could enjoy when purchasing a high energy performance home.

In addition to this, utility companies too are jumping on the bandwagon by offering builders rebates on energy costs based on their homes’ HERS Index scores. In fact, LG&E and KU Energy, a utility company based in Louisville, Kentucky, recently had their Energy-Saving New Homes Program recognized as a RESNET Energy Smart Program. The program rewards enrolled builders with rebates based on the HERS Index scores of their houses. For example, single family dwellings with HERS Index scores of 85 are eligible for a rebate of $440, and it increases up to $1,200 for homes that score 50 or lower. LG&E and KU Energy are the first utility in the U.S. to earn this designation from RESNET.

What Does All This Mean to Homebuyers?

Thanks to increased efforts and awareness, it’s now getting easier for homebuyers to identify and buy high energy performance homes. As the popularity of HERS Index scores continues to grow, and with builders actively promoting energy efficient homes via their scores, the future is starting to look a little…well…greener than it once did!

Capital Home Builders is Building to a Higher Standard!

We are focused on high quality built homes not square footage!
Capital Home Builders Designated as a RESNET Energy Smart Homes Builder for Committing to Build Energy Efficient Homes and Marketing Their Homes HERS Index Score

Thomasville, Georgia based home builder Capital Home Builders has entered into an agreement with the Residential Energy Services Network (RESNET) to provide new home buyers an important measurement of long-term energy performance of each new home the company builds.  The intent of the agreement is to raise consumers’ knowledge of new home energy performance by using RESNET’s HERS Index.  Use of the HERS Index will differentiate homes built by Capital Home Builders from other homes for sale in the Thomas County housing

Capital Home Builders is custom energy efficient home builder. The company was the first homebuilder to acquire the ENERGY STAR designation in South Georgia.  For more information on the company visit their web site at http://www.capitalhomebuilders.com/

The RESNET HERS Index is the industry standard by which a home’s energy efficiency is measured. The HERS or Home Energy Rating System was developed by RESNET and is the nationally recognized system for inspecting and calculating a home’s energy performance. Certified RESNET Home Energy Raters conduct inspections to verify a home’s energy performance and determine what improvements can be made to increase it. For more information go to http://www.resnet.us/home-energy-ratings

Izzy of Capital Home Builders, said RESNET’s HERS provides a quantitative measure of energy efficiency and permits comparisons between homes.   “It is expected that Capital Home Builders’ agreement with RESNET will serve as a model to other local and regional builders that would have positive outcomes for consumers and the new home industry,”

Steve Baden, executive director of RESNET lauded Capital Home Builders’ leadership for improving the energy performance of new homes.  “Today’s new homes are much more efficient in comparison to homes built just a decade ago.  These homes are more affordable to maintain, comfortable and have a higher value.  Thanks to leaders like Capital Home Builders, builders are increasing the energy performance of the homes they build.  This is good for consumers, the environment, the local economy and our national security.  It is great to have such a quality builder like Capital Home Builders educating homebuyers on the RESNET HERS Index.”

In making the commitment Capital Home Builders has been designated by RESNET as an RESNET Energy Smart Builder. RESNET Energy Smart Builders are leading the transformation of the housing towards high energy performance homes. These leading builders are committed to having all of their homes energy rated following RESNET’s stringent standards and marketing their homes HERS Index Score.

Energy-efficient homes seem to sell faster, fetch higher prices

Capital Home Builders Energy-efficient homes provide more efficient, healthful, and comfortable living environments by treating the structure as a complete system, where every component must work in harmony. Energy-efficient homes also use fresh-air ventilation and pressure-management techniques that maintain better air quality and comfort. AND, a properly balanced heating and cooling system means maximum energy efficiency. We are the only builder in Thomasville and South Georgia to have the best built homes and the only builder to have all of our homes "HERS Rated"
Some research projects in California, Oregon and Washington offer hints that energy efficiency and sustainability certifications for homes may result in easier sales and higher prices.

Home energy efficiency and sustainability have been major policy priorities for the Obama administration, but lurking in the background are two consistent questions: Beyond the documentable savings on utility bills, do such steps add to the resale value of a home? And do they make it easier or faster to sell your property?

Housing groups and housing officials say that definitive statistical data covering multiple regions of the country are scarce. But some localized research projects in Oregon, Washington and California offer promising hints.

In a study covering existing and new houses sold from May 2010 through April of this year, the Earth Advantage Institute, a nonprofit group based in Portland, Ore., found that newly constructed homes with third-party certifications for sustainability and energy efficiency sold for 9% more on average than noncertified homes in the six-county Portland metropolitan area. Existing houses with certifications sold for 30% more.

The raw sales data in the study were provided by the Portland Regional Multiple Listing Service. "Certified" houses were defined as those carrying Energy Star or LEED for Homes designations or Earth Advantage home certifications. (LEED stands for Leadership in Energy and Environmental Design.) The latest study was the fourth in an annual series conducted by Earth Advantage, each of which has shown clear price premiums for certified houses.

But officials caution that using average sales prices pulled from MLS data without trying to measure "comparable" homes against one another directly may not be conclusive. For instance, newly constructed certified houses may be more expensive to start, and existing certified homes may be larger and more likely to be in higher-cost neighborhoods where homeowner adoption rates for energy-efficiency measures are higher.

Nonetheless, said Dakota Gale, Earth Advantage's manager of sustainable finance, looking back at four years of studies, "we can still see a consistent trend that third-party certification continues to result in a higher sales price, even during the past year when home sales were down."

A study conducted two years ago by the institute in Seattle and Portland identified what may be another plus: Homes marketed with energy-efficiency certifications appear to sell faster on average than those without. The study tried to come up with rough comparability in appraisal terms between certified and noncertified properties, and it found that in Portland, certified homes spent 18 days less time on the market after listing than noncertified counterparts. In both Portland and Seattle, researchers documented price premiums — 9.6% in Seattle, 4.2% in Portland — in a statistical analysis with a 95% confidence level.

A recent study on houses in San Diego and Sacramento published by the National Bureau of Economic Research took a different tack: When you install photovoltaic solar panels on your roof, how much do you get back in market resale terms, beyond monthly energy savings?

Researchers examined a sample of home sales in the $500,000 range in both metropolitan areas between 2003 and 2010 and found that, on average, solar panel installations cost owners $35,967. But with federal and state subsidies, the net average cost came down to $20,892. This net expenditure, in turn, yielded an increase in appraised value by $20,194 — a 97% rate of recovery on the investment.

Though less than 100%, the rate is much higher than most home improvements in the most recent "Cost vs. Value" study conducted by Remodeling magazine — well above major kitchen and bathroom renovations.

Kevin Morrow, senior program manager for green building at the National Assn. of Home Builders, says that although many newly constructed homes come with energy and sustainability certifications, banks don't necessarily recognize their value when it comes to providing mortgage money.

For example, bank underwriters often do not include reduced monthly utility costs in the household income/household expense ratios that affect the maximum mortgage amounts available to buyers.

"The case needs to be made" to lenders, he said, "that, hey, these houses will cost less to operate, so they should be worth more."

Morrow added that appraisers are part of the issue as well if they don't have the training to recognize and credit extra value to houses that have money-saving solar installations, geothermal heating and cooling, Energy Star appliances, water conservation features and other green improvements.

The Appraisal Institute, the largest group representing that industry, says it has sponsored "green" appraisal courses for 2,300 appraisers during the last two years. It says it strongly supports efforts to better incorporate energy and environmental factors into mortgage underwriting and home valuations, including a possible congressional mandate requiring it.

http://articles.latimes.com/2011/aug/28/business/la-fi-harney-20110828

Bonus to Selling Agent, Unethical or Illegal?

The practice of a Bonus To Selling Agent (BTSA) should be banned.

I know that statement will be hugely unpopular to a number of agents, but it doesn’t change the fact that a BTSA is at least unethical and at worst illegal.

For a refresher for agents, what is a BTSA? A residential property is usually sold with approximately a 5-6% commission built into the price, and the commission is split between the seller’s agent and buyer’s agent (also known as the “selling” agent). On a $200,000 home, that’s a $6000/$6000 split for each agent. Sometimes, the seller will offer an additional incentive called a Bonus to Selling Agent (BTSA), above and beyond the 3% commission split. A BTSA of 1-2% is typical on new construction from a home builder, and is also offered frequently on existing homes.

Listing agents often advertise these bonuses in email marketing flyers sent to buyer’s agents in the hope that the bonus will be an incentive for the agent to show the property to their client. ‘Take a look at this – we’ve got a great deal for you!’ is the message. Some of the recent email flyers I receive on a daily basis said “$5000 Bonus to Buyers Agent”, “5K BTSA”, and “Who wants to pay you $11,510???”

Whose pocket does the extra $5K come from? Ultimately, the buyer. It is $5,000 they could have used to reduce the price of the home or buy new furniture.

Why is a BTSA unethical?

The Realtor Code of Ethics states in Article 1 that “when representing a buyer… as an agent, REALTORS® pledge themselves to protect and promote the interests of their client.”

On advertising, Article 12 of the Code of Ethics goes on to state that “the offering of any inducements to do business is subject to the limitations and restrictions of state law and the ethical obligations established by any applicable Standard of Practice.”

In other words, the NAR Code of Ethics acknowledges that agents have an obligation to their clients, and that you should not induce someone to do business if it is at odds with the Code of Ethics. But clearly, a BTSA advertisement by a listing agent conflicts with the duty that the buyer’s agent owes to his client. The advertisement isn’t for a compelling feature of the house, a price reduction, or anything else that would benefit the buyer. The only benefit is to the buyer’s agent. That’s a problem.

Is a BTSA Illegal?

There is a bigger problem with bonuses to buyer’s agents. As most agents learned in real estate school, agents have a fiduciary responsibility to their clients. Businessdictionary.com says that a fiduciary “must not exploit his or her position of trust and confidence for personal gain at the expense of the principal.” In other words, the agent has to hold his buyer’s wants and desires above his own.

If a buyer’s agent steers his buyer to a particular house because a higher commission is offered, that is a violation of his fiduciary responsibility to the buyer. He should find the best home at the best price for his buyer, not one that fills his wallet better than another.

So why offer a Bonus to Selling Agent? Why is a BTSA offered on literally thousands of properties every year?

Because sadly, often times it works. Some real estate agents will say a BTSA should not work, but does. It’s human nature. And therein lies the problem.

Consequently, the only solution I see is to simply ban BTSAs. Clearly a bonus for the buyer’s agent is not in the buyer’s interest, as the buyer ultimately pays more for the house. Real estate agents have a duty to the buyer, and a buyer’s agent bonus conflicts with that obligation.

© Copyright 2010, Andy Salo, Yigdigs LLC

Tags: 6% commission, Bonus To Selling Agent, BTSA, Buying a Home

This entry was posted on Wednesday, April 28th, 2010 at 11:38 am and is filed under Buying a Home. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Home Buyers in Georgia: I would ask if the home you are interested in making an offer has a “Bonus” FYI, most bonuses are in the Realtors private note section for other realtors to see as an enticement to bring more buyers to that listing. That bonus should go to the buyer NOT the selling agent and it should be advertised in the public section. Georgia is a Dual Agency state so, a $400,000 home sold by the listing agent is a $24,000 commission + $10,000 Bonus, Will you do the math.

http://www.yigdigs.com/fsbo-blogs/andysalo/2010/04/bonus-to-selling-agent-e28093-unethical-or-illegal/

“Old Homes"Remodling"

EPA Steping Up Lead Paint Enforcement


The EPA has just announced that they will be three more enforcement actions for violations of the Lead Renovation, Repair and Painting Rule (RRP). They are requiring the use of lead safe work practices. It is to insure that activities such as sanding, cutting and demolition, which can create hazardous lead dust, are conducted properly by trained and certified contractors. The problem that occurs during renovations with lead based products present, is that the dust gets thrown into the air. The lead in the product is not very harmful to us. But when it is air born and becomes a fine particle it is then inhaled and this raising the chances for Lead related health problems, such as mesothelioma. The reason these enforcmenta have been made is to protect the property owners, as well help wiht the liablity of lawsuits against landlords. Just recently Colin Wentworth, a rental property owner had to pay 10,000 to resolve a violation of the RRP rules. Which was a complaint that stated he was using power equipment to get paint off of an exterior wall. So the enforcments are about protecting are familys and our neighbor hoods. The more prevelent lead becomes the stricter the rules will become on lead. This is to help keep what is most important safe, our families. This crack down on lead is spreading throughout the nation. Due to the toxic nature of the asbestos material its very important people.

Stay Safe Working Around Lead Paint

In challenging economic times, many homeowners consider remodeling their homes rather than moving. Others are remodeling to improve energy efficiency and Go Green! It is important to stay safe when you remodel, whether you are hiring a contractor or doing it yourself. Learn the facts about working with lead paint. Painting or remodeling a home build before 1978 can disturb lead paint and endanger young children. Lead can harm your child’s brain, causing lifelong learning and behavior problems. Even children who seem healthy can have high levels of lead in their bodies. Children under age six are most at risk. Lead can harm an unborn baby, if the mother is exposed to lead. Removing lead-based paint improperly can increase the danger to your family and require large costs for proper cleanup to ensure a lead-safe environment. Keep your home a Healthy Home by learning the facts about lead.

Where is lead paint found? Most homes built before 1978 have some lead paint. Homes built before 1960 have the most lead paint. Lead paint can be present on any painted surface, but it is most fen found on windows, trim,doors, railing, columns, porches and outside walls.

Sanding, scraping or otherwise disturbing lead paint can release large amounts of toxic lead dust. This dust isn’t always visible and can settle on floors and other surfaces where it gets on children’s hands and into their mouths. The only way to know for certain if a surface has been coated with lead-based paint is to test it.

New rules adopted by the EPA require that if you hire a contractor to remodel your pre 1978 home and the work involves disturbing paint, the contractor is required to give you the Renovate Right pamphlet before starting work. EPA’s Renovation, Repair and Painting Program (RRP) rule also requires that, starting April 2010, contractors performing work that disturbs lead-based paint homes, child care facilities, and schools built before 1978 Must be EPA-certified to work with lead-based paint, and Must follow specific work practices to prevent lead contamination.

http://rdsenvironmental.com/tag/home-remodling/

Thomasville, GA has really old homes that have been Remodeled ASK FOR DOCUMENTATION of these bad materials removed. Lead, Asbestos, Mold

Any home built before 1978 has some type of lead base paint; also do not forget the likely chance of Asbestos and mold. Any home from 1978 and 1900 and 1800 should be tested by a company that specializes in removing Lead, Mold, and Asbestos and they should provide documentation of no findings of these types of hazards and dangerous materials in any old home. No documentation buyers beware. As a real estate agent I would not show this type of property or list without proper documentation.

Hazard Materials

Watch For "Green" Claims To Rise In Real Estate

The town of Thomasville, GA Is NOT immune to “Green Washing”

I was recently introduced to an article in the St. Petersburg Times that deals with the now-popular term "greenwashing". It was called "'Green' Houses in Name Only?" by Chuin-Wei Yap. I thought the author did a good job of framing the problem that is starting to crop up everywhere in real estate - sellers inappropriately identifying their homes as "green" or "energy efficient". I loved this quote:

"As home building slumps and environmentalism becomes a business advantage, a fast-growing market for green homes is becoming synonymous with "buyer beware"

The article addressed the lack of proper oversight in "green" claims and the frustrations certifying organizations face when they see claims being made. Since most of the oversight still is voluntary, there's nothing to stop a builder (or realtor) from making a claim that the home is energy efficient or even green-built. In fact, we have at least one builder I know of who's labeling their homes as energy efficient (they're nothing special, and are not certified as Energy Star or better to my knowledge). When I questioned the claim to the listing agent (in a friendly way) I got silence in reply.

"Greenwashing" is the general term for mis-representation or over-representation of a product's environmentally-friendly attributes. Keep a sharp eye out for this trend in real estate and "buyer beware".

http://activerain.com/blogsview/502458/watch-for-green-claims-to-rise-in-real-estate