Green Building in North Carolina Chad Ray Karin Argeris
Green Building in NC 2 ©2010 QTQA, LLC Today’s Agenda Green Construction ConceptsGreen Construction Concepts –Green Pillars; 6 Integrated Systems Construction Considerations Cost/Pricing Impact –Consumer Benefits –Objective Documentation
Green Building in NC 3 ©2010 QTQA, LLC Today’s Agenda Green Appraisal ConceptsGreen Appraisal Concepts –Valuation Considerations Operating Costs Quality of Construction –Information Sources (Comps) –Quick Turn Approaches
Green Construction Concepts Chad Ray Olde Heritage Builders
Green Building in NC 5 ©2010 QTQA, LLC Green Construction Concepts NGBS Green Pillars 6 Integrated Systems Lot Design, Preparation, and Development Resource Efficiency Energy Efficiency Water Efficiency Indoor Environmental Quality Homeowner Education
Green Building in NC 6 ©2010 QTQA, LLC Green Construction Concepts Lot Design, Preparation, DevelopmentLot Design, Preparation, Development –Key Elements –Construction Considerations –Cost Impacts: Labor/Materials –Pricing Impact
Green Building in NC 7 ©2010 QTQA, LLC Green Construction Concepts Resource EfficiencyResource Efficiency –Key Elements –Construction Considerations –Cost Impacts: Labor/Materials –Pricing Impact
Green Building in NC 8 ©2010 QTQA, LLC Green Construction Concepts Energy EfficiencyEnergy Efficiency –Key Elements –Construction Considerations –Cost Impacts: Labor/Materials –Pricing Impact
Green Building in NC 9 ©2010 QTQA, LLC Green Construction Concepts Indoor Environmental QualityIndoor Environmental Quality –Key Elements –Construction Considerations –Cost Impacts: Labor/Materials –Pricing Impact
Green Building in NC 10 ©2010 QTQA, LLC Green Construction Concepts Homeowner EducationHomeowner Education –Key Elements –Construction Considerations –Cost Impacts: Labor/Materials –Pricing Impact
Green Building in NC 11 ©2010 QTQA, LLC Green Construction Concepts Consumer BenefitsConsumer Benefits –Savings –Health –Comfort –Resale
Green Building in NC 12 ©2010 QTQA, LLC Green Construction Concepts Objective Documentation ProducedObjective Documentation Produced –Plans/Specs –HERS Rating –NGBS Calculator Results –Certification Level
Green Building in NC 13 ©2010 QTQA, LLC Green Construction Concepts NGBS CALCULATOR - BRONZE
Green Appraisal Concepts Karin Argeris Quick Turn Quality Appraisals, LLC
Green Building in NC 15 ©2010 QTQA, LLC Green Appraisal Concepts Green Adds ValueGreen Adds Value –Operating Costs Energy Consumption –Quality of Construction On-going Maintenance Durability/Effective Age Resale Value
Green Building in NC 16 ©2010 QTQA, LLC HERS – Rating Benchmarks $ Energy Star 2006 Energy Code Conventional Construction Pre-2006 HERS100 HERS85 ` ENERGY USAGE ENERGY COST Traditional Construction Improved Framing & Materials Energy Efficient Technologies HERS 115+
Green Building in NC 17 ©2010 QTQA, LLC Green Value Added VALUE VALUE Water Efficiency Resource Efficiency Lot Design Operation Indoor Air Quality Energy Efficiency Materials & Framing Traditional Techniques EnergyStar Certified Traditionally Built Home Certified Hi-Performance Home Built to 2006 Code HERS < 85 HERS = 85 HERS = 100 HERS = 125
Green Building in NC 18 ©2010 QTQA, LLC Green Appraisal Concepts Valuation ConsiderationsValuation Considerations –Operating Costs Energy Consumption On-going Maintenance –Quality of Construction Durability/Effective Age Resale Value
Green Building in NC 19 ©2010 QTQA, LLC Green Appraisal Concepts Comps – Information SourcesComps – Information Sources –MLS/Realtor – Inconsistent, Searchable Certifications HERS Rating –Builder/Verifier – Reliable, Non-Searchable Green Calculator Scores HERS Rating –Public Records ?
Green Building in NC 20 ©2010 QTQA, LLC Green Appraisal Concepts Quick Turn: Valuation ApproachesQuick Turn: Valuation Approaches –Preliminary No Official Guidance Based on Fannie Mae Approach –Adjustments Energy Efficiency Quality of Construction
Green Building in NC 21 ©2010 QTQA, LLC Green Appraisal Concepts Quick Turn: Valuation ApproachesQuick Turn: Valuation Approaches –Energy Efficiency Adjustments Estimate Energy Savings –Based on HERS Rating Differential Savings Value - Capitalized –Additional Mortgage Capacity Savings Value - Gross Rent Multiplier –Market Value of Additional “Rent”
Green Building in NC 22 ©2010 QTQA, LLC Green Appraisal Concepts Energy Efficiency Adjustments - Example
Green Building in NC 23 ©2010 QTQA, LLC Green Appraisal Concepts Quick Turn: Valuation ApproachesQuick Turn: Valuation Approaches –Quality of Construction Reduced Non-Energy Costs –Adjust by Certification Level »General: 1% per Level Reduced Effective Age Resale –Quantitative Data Limited
Green Building in NC 24 ©2010 QTQA, LLC Green Appraisal Concepts Quality Adjustments - Example