Success of Green Building in the Northwest Healthy Home Class – Built Green November 12, 2009 By GreenWorks Realty 1

GreenWorks Realty GreenWorks Realty is the only mission driven real estate company in our region. The first real estate brokerage in the country to specialize in green properties. Full-service agency Every agent is expected to receive green designation (Built Green Professional, LEED AP, EcoBroker) within their first year We believe real estate professionals can be change agents and influence the demand for green homes. We work to make every home a greener home through our Healthy Home Package, free to our clients who purchase a non-green home. GreenWorks recently performed an in-depth carbon footprint analysis and implemented carbon reduction measures into our culture and policies. 2

King County Single Family Homes Built 2007 or Later Certified Built Green, Energy Star, and LEED For Homes   Non Certified % Homes Diff # of homes sold 4,188 1,129 21.2% Median Square Ft 2,400 1,779 -25.9% Median Sold Price $ 457,823 $ 469,950 2.6% Median Days on Mrkt 58 52 -10.3% Price/SF $ 191 $ 264 38.5% 3

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Seattle Single Family Homes Built 2007 or Later Certified Built Green, Energy Star, and LEED For Homes   Non Certified % Homes Diff # of homes sold 1,411 627 30.8% Median Square Ft 1,500 1,455 -3.0% Median Sold Price $ 399,990 $ 417,000 4.3% Median Days on Mrkt 50 38 -24.0% Price/SF $ 267 $ 287 7.5% Unpublished Data: In the City of Seattle, Certified Homes Premiums have jumped from 7 ½ to 8 ½ % Certified Home Premiums have been steadily increasing 6

Seattle Single Family Homes Built 2007 or Later Certified Built Green, Energy Star, and LEED For Homes Ballard/Greenlake Neighborhood Area 705 Non Certified %   Homes Diff # of homes sold 465 240 34.0% Median Square Ft 1,471 1,369 -6.9% Median Sold Price $ 419,000 $ 410,000 -2.1% Median Days on Mrkt 47 36 -23.4% Price/SF $ 285 $ 299 5.1% 7

Seattle Single Family Homes Built 2007 or Later Third Party Verified (Built Green 4 and 5 Star Homes) 3rd Party Cert Non Certified %   Homes Diff # of homes sold 1,254 77 5.8% Median Square Ft 1,490 1,527 2.5% Median Sold Price $ 405,000 $ 465,657 15.0% Median Days on Mrkt 50 74 48.0% Price/SF $ 272 $ 305 12.2% 8

Green Building Value Initiative Purpose: To determine the level of value green building certification adds to residential and commercial real estate projects Method: Case studies, property comparisons, interviews, and surveys for assessments   Involved Parties: A collaboration between: Built Green- King and Snohomish Counties Built Green- Washington State Cascadia Chapter of the US Green Building Council Earth Advantage Institute Northwest Eco Building Guild Lighthouse Sustainable Building Center Master Builders Association of Pierce County Olympia Master Builders State of Washington Department of Ecology Vancouver Valuation Accord 9

GBVI Highlights Home buying public needs to better understand the value and significance of certified sustainable homes. Builders who build certified homes asserted the importance that homebuyers learn more to understand the full quality and value of their products.   Home values should incorporate performance measures. Residential performance measures should be incorporated into standard home valuation. Long-term reductions in utility and repair costs should be considered in appraisals.    Certified homes perform better if the home buyer understands the quality and systems differentiation of that home. A certified home is more likely to earn a price premium if the quality and performance savings of that home is clearly communicated to the future resident. 10

GBVI Highlights Hamilton Report 14% premium from marketing the green features of a home. In a 5 county region: $534,000 – Avg. sales price of certified homes marketed as green $458,000 – Avg. sales price of certified homes NOT marketed as green Study includes: 1,470 certified homes sold between 2007 and April, 2009, built between 2005 and 2009.   All counties show some sort of premium for marketed homes, presenting strong evidence that marketing green features and certifications has a positive effect on home prices. Conclusion As buyers mature in their understanding of certified homes, the value of certified homes will continue to grow relative to those without certification. 11

Buyers Underestimate Environmental Impact of Homes 12

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Who’s Listening? Profile of the Green Home Buyer Income Levels 32% over $75,000 64, over half over $50,000 14

Who’s Listening? Profile of the Green Home Buyer Educational Level Green homeowners are highly educated, with nearly 80% having some college-level experience. Nearly 60% have college or advanced degrees. I would imagine that with our technology-based economy in the Northwest, that this national statistic is pretty spot-on? The Milliennial Generation was raised on recycling and corporate transparency and these ethics will continue to push the consumer markets, including home buying. Young people are the future home buyers, and they are likely to continue to push the market toward more sustainable practices. 15

Dave’s notes on demographics Personal Attitudes and Preferences of Green Homeowners – Cultural Creatives Interested in continuous learning and new experiences – 79% Active as comparative shoppers – 76% Enthusiastic about travel – 73% Dave’s notes on demographics Page 17 SmartMarket Interested in cooking – 64% Socially and politically knowledgeable – 58% Additionally, 40% are not at all interested in celebrities and television. 16

RCLCO Report Green homeowners are highly educated, with nearly 80% having some college-level experience. Nearly 60% have college or advanced degrees. I would imagine that with our technology-based economy in the Northwest, that this national statistic is pretty spot-on? The Milliennial Generation was raised on recycling and corporate transparency and these ethics will continue to push the consumer markets, including home buying. Young people are the future home buyers, and they are likely to continue to push the market toward more sustainable practices. 17

RCLCO Report

RCLCO Report

RCLCO Report

RCLCO Report

RCLCO Report

NWMLS Environmental Additions to Listing Input

National Green Labels Home rating systems (to be discussed soon), and product labels and rating systems help consumers know what they are buying, and realtors know what they are selling. 24

What’s Next 25

Thank you. Ben Kaufman 206.300.0115 www.greenworksrealty.com 26