1. 4
VALUATION AND INCENTIVES FOR GREEN HOMES
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2. In This Chapter Developing price proposals and offers
Green home appraisals
Energy efficient mortgages
Incentives and rebates
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3. Developing Price Proposals and Offers
Location
Green certification
Green features
Broad vs. specific appeal
Cost savings focus
Quantifiable benefits
Cost of upgrades
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4. Exercise Determine a price proposal and answer these questions:
What price should you list for your client’s home? Why?
What factors did you consider when making your decision?
What additional information would be helpful in determining an appropriate list price?
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5. Green Home Appraisals: Challenges
Lack of data
Comparable sales
Value of green buildings or features
Variety of rating systems
Life-cycle cost
Value over time
Education
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6. Green Home Appraisals: Opportunities
Vancouver Valuation Accord (VVA)
Uniform Residential Appraisal Report (URAR)
Education opportunities
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7. Types of Energy Efficient Mortgages
New homes—energy efficient mortgage
Stretches debt-to-income ratio to qualify borrower for “more house”
Existing homes—energy improvement mortgage
Borrower can use cost savings to finance energy improvement without increasing down payment
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8. EEM Concerns May be difficult to implement
Stringent criteria and complex requirements
Easier to secure financing in other ways
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9. Other Green Home Mortgage Options
Credit for cost of a HERS home energy rating
Credit for using approved vendors to install energy improvements
Credit on the cost of energy improvement inspector verification
Reduction in closing costs, interest rates, or other fees
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10. Federal Incentives
Emergency Economic Stimulus Stabilization Act of 2008
Many provisions for energy efficiency incentives and tax credits both for new and existing residential and commercial properties
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11. State and Local Incentives
EPA
Database of State Incentives for Renewables & Efficiency
ENERGY STAR partners
NAHB
NAR Smart Growth Issues Tracker
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