1. Making the Invisible Visible: Valuing Energy Efficiency Improvements in a Real Estate Transaction October, 2013

2. CNT Energy is a Think-and-Do Tank CNT Energy is dedicated to helping communities and consumers save energy and money Dynamic pricing and smart grid –Ameren Power Smart Pricing –ComEd Residential Real-Time Pricing Energy efficient buildings –Residential –Commercial and municipal buildings Regional Energy Planning

3. Laura Reedy Stukel Realtor, LW Reedy Real Estate NAR Roles –GreenMLS Toolkit Team –Green Resource Advisory Council –Real Property Valuation Committee –Consumer Communications Committee BPI Role –Co-Chair, Real Estate Certificate Standard Working Group

4. Market Focus Demand Policy Incentives Market GreenMLS

5. Defined System for Market Value Graphic courtesy of NAR www.greenthemls.orgwww.greenthemls.org

6. Why Now? Efficiency Demand is Strong Source: NAR Home Buyer/Seller Profile

7. Why Now? Transactions Growing Source: National Association of REALTORS®

8. 7-Step Blueprint 1.Document Improvements 2.Data for Appraisals 3.Data for MLS 4.Training Opportunities 5.Report Inventories 6.Standardized IT Solutions 7.Work with Financial Institutions

9. 1. Document Improvements Document energy efficiency features and improvements using consistent, standardized methods.

10. 2. Data for Appraisals http://www.AppraisaInstitute.org/education/green/ Ensure that the data about home energy efficiency improvements is incorporated into the appraisal process.

11. 3. Data for MLS IHP Silver Certificate RETS Green MLS Fields: Verifications Green Verification Sponsor Green Verification Program Green Verification Rating Green Verification Version Work with the MLS community to ensure that data about home energy efficiency improvements are incorporated into for-sale listings.

12. Step 4. Training Opportunities Capitalize on existing high- quality continuing education and designation training. APPRAISAL INSTITUTE CE 575001563 CASE STUDIES IN APPRAISING GREEN RESIDENTIAL BUILDINGS APPRAISAL INSTITUTE CE 575001564 INTRODUCTION TO GREEN BUILDINGS APPRAISAL INSTITUTE CE 575001741 CASE STUDIES IN APPRAISING GREEN COMMERCIAL BUILDINGS APPRAISAL INSTITUTE CE 575001788 CASE STUDIES IN APPRAISING GREEN RESIDENTIAL BUILDINGS APPRAISAL INSTITUTE CE 575001789 INTRODUCTION TO GREEN BUILDINGS: PRINCIPLES & CONCEPTS CHICAGO CHAPTER OF THE APPRAISAL INST. CE 575001767 INTRODUCTION TO GREEN BUILDINGS ILLINOIS APPRAISAL EDUCATION INC CE 575001806 APPRAISING GREEN RESIDENCES MCKISSOCK APPRAISAL SCHOOL CE 575001534 FOUNDATIONS IN SUSTAINABILITY: GREENING THE APPRAISAL & IN MCKISSOCK APPRAISAL SCHOOL CE 575001535 THE NUTS & BOLTS OF GREEN BUILDING FOR APPRAISERS MCKISSOCK APPRAISAL SCHOOL CE 575001576 INTRODUCTION TO GREEN BUILDINGS FOR APPRAISERS MCKISSOCK APPRAISAL SCHOOL CE 575001681 INTRODUCTION TO RESIDENTIAL GREEN BUILDINGS FOR MCKISSOCK APPRAISAL SCHOOL CE 575001760 THE GREEN GUIDE TO APPRAISING MCKISSOCK APPRAISAL SCHOOL CE 575001803 MODERN GREEN BUILDING CONCEPTS NAT ASSOC OF IND FEE APPRAISERS CE 575001721 THE APPRAISAL OF GREEN HOMES

13. Step 5. Report Inventories 13 Source: Colorado Energy Office © 2011 State of Colorado These Metropolitan Statistical Areas account for 90% of new home construction in Colorado. Census Bureau Metropolitan Statistical Area Number of Single Family Homes Built FY13 Percentage of New Homes with HERS Rating FY13 Denver-Aurora- Lakewood 792273% Fort Collins-Loveland167629% Greely164824% Colorado Springs60718% Boulder564100% Grand Junction43525% Pueblo21923%

14. Step 6. Standardized IT Solutions MLS Operators Agents Tax Data Programmatic Data HPXML Develop standards and IT solutions that allow quicker and more automated transfer of data. Brokerages Aggregators

15. 7. Work with Financial Institutions Ethics Rule An appraiser must promote and preserve the public trust inherent in appraisal practice by observing the highest standards of professional ethics. Competency Rule An appraiser must: (1) be competent to perform the assignment; (2) acquire the necessary competency to perform the assignment; or (3) decline or withdraw from the assignment. Scope of Work Rule An appraiser must properly identify the problem to be solved in order to determine the appropriate scope of work. The appraiser must be prepared to demonstrate that the scope of work is sufficient to produce credible assignment results. Work with partner financial institutions to ensure selection of qualified appraisers.

16. Next Step: Apply the Blueprint Program Data (Information already being captured as part of energy efficiency programmatic work)

17. Learn More! More information on unlocking the value of high performance homes can be found at: http://www.cntenergy.org/innovation/valuehph/ The full paper is available for download at www.cntenergy.org/media/Unlocking_Value_2013.pdfwww.cntenergy.org/media/Unlocking_Value_2013.pdf Join a webinar on Wednesday, Oct. 2 at 11 a.m. www.cntenergy.org/events www.cntenergy.org/events On Twitter, follow the hashtag #VisibleValue