NAR’s GreenNAR’s Designation sustainable Residential property Elective designation Course
student Manual
A program by the Green REsource Council of the National association of realtors® NAR’s Green Designation Residential Elective Course
Copyright © 2008, The Green REsource Council NATIONAL ASSOCIATION OF REALTORS®
IMPORTANT NOTE: The Green REsource Council, the Real Estate Buyer’s Agent Council, Inc., and National Association of REALTORS®, its faculty, agents and employees are not engaged in rendering legal, accounting, financial, tax, or other professional services through these course materials. If legal advice or other expert assistance is required, the student should seek competent professional advice.
Green REsource Council 430 North Michigan Avenue Chicago, Illinois 60611 USA
Phone: 800-874-6500 or 312-329-3281 Fax: 312-329-8632 E-mail: [email protected] Web site: www.GreenResourceCouncil.org NAR’s Green Designation Residential Elective Course
Contents
Introduction 1 What You Will Learn 1
1. Marketing to the Green Home Buyer 6 National Certification and Rating Programs 7 Green Home Remodeling in Weakening Markets 12 Growth in Green Home Knowledge 13 Types of Green Home Buyers 14 Exercise: Identifying Features for Home Buyer Types 16 Counseling Buyers 18 The Source of the Source 20
2. Green Practices in New Home Design 24 Whole Building Design 25 Passive Design 33 Exercise: Design Challenges 36
3. Green Practices in Home Construction 40 Innovative Construction Methods and Materials. 41 Energy Efficiency 46 Hot Water Heaters 49 Retrofitting, Remodeling, and Renovating Existing Homes 52 Cost/Benefit Analysis 56 Exercise: Cost/Benefit 66
4. Valuation and Incentives for Green Homes 68 Developing Price Proposals and Offers 69 Exercise: Pricing a Green Home 70 Green Home Appraisals 74 Green Home Mortgages 75 Homeowner Incentives 79 Homeowner Utility Rebates 81
5. Green Living 84 Green Housekeeping 85 Exercise: Green Housekeeping 89 Landscaping, Lawn, and Garden Care 90 Energy Efficient Appliances 96 Exercise: Selecting Appliances 101 Disposal Issues 103 NAR’s Green Designation Core Course
Introduction
Welcome to NAR’s Green Designation Residential Elective Course. In this one-day course we will build upon the green concepts and principles outlined in NAR’s Green Designation Core Course. We also will take a more advanced look at green strategies, practices, and considerations in residential real estate.
What You Will Learn This course is organized in five chapters. Learning objectives for each chapter are identified as follows:
Chapter Title Learning Objectives
1 Marketing to the • Compare and contrast Leadership Green Home Buyer in Energy and Environmental Design (LEED) for Homes Certification, National Green Building Certification from the National Association of Home Builders (NAHB), and ENERGY STAR Qualified Homes
• Identify the home features that would appeal to green home buyers
• Adapt a counseling session for a green home buyer
• Understand that the real estate professional should serve as the “source of the source”
2 Green Practices in • Define the term whole building New Home Design design
• Discuss green design factors, including climate, passive design, and daylighting
1. INTRODUCTION
3 Green Practices in • Discuss innovative construction Home Construction materials and methods
• Describe resource-efficient home systems, building methods, and materials
• Guide clients and customers in analyzing the cost/benefit
4 Valuation and • Take into account green-home Incentives for features when developing a price- Green Homes proposal/offer for a seller or buyer
• Demonstrate the cost/benefit value of green-home features in marketing properties
• Inform customers and clients of green mortgage options and state/ local incentives that encourage and enable resource efficiency
5 Green Living • Inform clients and customers of green housekeeping, gardening, and landscaping methods
• Guide clients in selecting energy- efficient appliances and disposing of old ones
• Exemplify green principles in disposal of recyclable and unrecyclable items
Steps to Earn NAR’s Green Designation This course is an approved elective for NAR’s Green Designation. If you previously completed the two-day core course, your next steps to earn NAR’s Green Designation are:
2. NAR’s Green Designation Core Course
1. Complete this elective course 2. Score 80 percent or higher on the 30-question final exam 3. Download a copy of the designation application form from the Green REsource Council Web site: www.GreenREsourceCouncil.org 4. Complete and submit the form to the Green REsource Council by e-mail ([email protected]) or fax (312-329-8632)
Note: Students may not use the logo for NAR’s Green Designation or distinguish themselves as NAR Green Designees until the designation is awarded by the Green REsource Council.
When students are awarded NAR’s Green Designation, they must observe the following:
• NAR Green Designees must maintain membership with the National Association of REALTORS® and the Green REsource Council in order to use the designation and distinguish themselves as NAR Green Designees. Green REsource Council annual dues are $99 USD.
• The rules governing the use of the term REALTOR® must be strictly followed when using NAR’s Green Designation. For example, descriptive words or phrases, including ones such as “Green,” “eco- friendly,” or “sustainable” should never precede the terms REALTOR® or REALTORS® even if the descriptive words or phrases are separated by a comma or hyphen. For a complete explanation of rules, please consult Chapter 5, “Greening Your Real Estate Practice,” in NAR’s Green Designation Core Course.
• The logo for NAR’s Green Designation should not be combined with any other graphic or typographic features.
3. INTRODUCTION
4. Marketing to 1 the Green Home Buyer 1. Marketing to the Green Home Buyer
1. Marketing to the Green Home Buyer
In This Chapter • National certification and rating programs • Marketing to the green homebuyer • Buyer counseling session • How to be the source of the source
6. NAR’s Green Designation Residential Elective Course
National Certification and Rating Programs In NAR’s Green Designation Core Course, we identified the following as national certification and rating programs for green buildings:
• Leadership in Energy and Environmental Design (LEED) certification, which is awarded by the U.S. Green Building Council (USGBC)
• ENERGY STAR, which is awarded by the U.S. Environmental Protection Agency (EPA)
Let’s take a closer look at how these programs, in addition to National Green Building Certification from the National Association of Home Builders (NAHB), are implemented in the residential market.
LEED for Homes LEED for Homes is a comprehensive rating system that examines the entire structure. The LEED for Homes Certification rates homes—single and multi-family—based on eight categories (Figure 1.1).
Figure 1.1: Categories of LEED for Homes Rating System
1 Innovation and Design Special design methods, unique Process (ID) regional credits, and exemplary performance levels
2 Location and Linkages Placement of homes in socially and (LL) environmentally responsible ways in relation to the larger community
3 Sustainable Sites (SS) Use of the entire property so as to minimize the project’s impact on the site
4 Water Efficiency (WE) Water-efficient practices, both indoor and outdoor
7. 1. Marketing to the Green Home Buyer
5 Energy and Energy efficiency, particularly in the Atmosphere (EA) building envelope and heating and cooling design
6 Materials and Efficient utilization of materials, Resources (MR) selection of environmentally preferable materials, and minimization of waste during construction
7 Indoor Environmental Improvement of indoor air quality Quality (IEQ) by reducing the creation of and exposure to pollutants
8 Awareness and The education of the homeowner, Education (AE) tenant, and/or building manager about the operation and maintenance of the green features of the LEED home
Source: Reprinted with permission of the U.S. Green Building Council, LEED® for Homes Rating System, www.usgbc.org. Copyright © 2007 by the U.S. Green Building Council.
Based on credits earned in each category, the home is awarded one of three certification levels: silver, gold, or platinum.
As of August 2008, there were 369 certified LEED for Homes projects, and 888 certified units. Of those units: • 216 homes are LEED Certified • 366 are LEED Silver • 166 homes are LEED Gold • 140 homes are LEED Platinum
For a profile of a LEED for Homes Silver project, see Case Study 1.1.
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Case Study 1.1 Profile of a LEED for Homes Silver Project
Morrisania Homes, Bronx, NY Provider: Steven Winter Associates Builder: Blue Sea Development Company Photo Credit: Bernstein Associates
Highlights • 76-unit mix of two- and three-family homes
• Structures built with recycled crushed concrete and masonry and locally manufactured materials
• Appliances are 100% ENERGY STAR rated
• Dual-flush toilets
• 2-gallon-per-minute shower heads and 1.5-gallon-per-minute sink faucets
• Recyclable carpeting and use of low-VOC paints, cabinet finishes, sealants, and adhesives
Source: Reprinted with permission of the U.S. Green Building Council, LEED® for Homes Rating System, www.usgbc.org.
9. 1. Marketing to the Green Home Buyer
National Green Building Certification In 2005, the National Association of Home Builders (NAHB) developed and published the NAHB Green Home Building Guidelines upon which NAHB’s National Green Building Certification is based. These guidelines address the following areas:
1. Preparation and design of the lot 2. Resource efficiency 3. Energy efficiency 4. Water efficiency and conservation 5. Comfort of occupants and indoor environmental quality 6. Operation, maintenance and homeowner education
Three green home certification levels are available: Bronze, Silver, and Gold. For more information about NAHB’s certification program, visit www.nahbgreen.org.
ENERGY STAR Qualified Homes ENERGY STAR qualification focuses on energy efficiency. To earn the qualification homes must meet guidelines set by the EPA. Qualified homes are 20–30 percent more energy efficient than standard homes. ENERGY STAR raters conduct onsite testing and inspection to verify energy efficient measures for insulation, windows, tight construction and ducts, and efficient heating and cooling. Inspection and testing is conducted by independent raters based on the standards for Home Energy Ratings maintain by the Residential Energy Services Network (RESNET), www.resnet.us; the result of this inspection is a Home Energy Rating System (HERS) score, and the lower the score the better.
The ENERGY STAR Qualified New Homes Market Indices reports that more than 120,000 new homes earned the ENERGY STAR rating in 2007. According to the ENERGY STAR Web site, the energy efficiency of these homes was equivalent to:
• Eliminating the emissions of 60,000 vehicles • Saving 355,680,000 pounds of coal • Planting 97,000 acres of trees • Saving $54 million on utility bills for homeowners
10. NAR’s Green Designation Residential Elective Course
Figure 1.2 shows which states have the highest concentration of new ENERGY STAR rated homes1.
Figure 1.2: ENERGY STAR Homes in 2007
State 2007 ENERGY 2007 2007 ENERGY STAR One-Unit STAR Qualified New Housing Market Homes Permits Penetration
Arizona 7,395 35,255 21%
Arkansas 7,395 35,255 21%
California 7,685 63,897 12%
Connecticut 689 5,006 14%
Hawaii 1,725 4,195 41%
Iowa 2,843 8,119 35%
Massachusetts 1,287 8,357 15%
Nevada 7,583 15,216 50%
New Jersey 5,926 12,230 48%
New York 2,453 15,995 15%
Oklahoma 2,249 11,305 20%
Rhode Island 279 1,306 21%
11. 1 Each state’s index is a measurement of ENERGY STAR’s presence in the site-built, single-family new homes market for that state. To learn more go to www.energystar.gov 1. Marketing to the Green Home Buyer
Texas 40,447 110,874 36%
Utah 2,531 15,425 16%
Vermont 403 1,482 27%
Source: www.energystar.gov.
Green Home Remodeling in Weakening Markets With a weakening national labor market, declines in new-home construction and new-home sales as well as rise in energy costs, many home owners today are motivated to remodel their homes green. According to the 2008 McGraw-Hill Construction SmartMarket Report, The Green Home Consumer: Driving Demand for Green Homes, 44% are remodeling their homes with green products2.
The Green Home Guide Web site, www.greenhomeguide.org, a Web site from the USGBC, is a valuable resource for consumers interested in green remodeling. For an example of projects with an estimated cost of less than $500, see Figure 1.3.
Figure 1.3: Green Projects for Under $500
Project Estimated Cost
Install aerators on faucets Less than $50
Clean your refrigerator coils Less than $50
Replace weatherstripping Less than $50
Reduce light pollution Less than $50
Clean green Less than $50
12. 2 McGraw-Hill Construction Smart Market Report, The Green Home Consumer: Driving Demand for Green Homes, www.construction.com NAR’s Green Designation Residential Elective Course
Plant deciduous trees Less than $50
Replace can lights $47.80
Install a programmable thermostat $49
Insulate hot-water pipes $60
Build a clothesline $69
Create a rain garden $87
Build a worm bin $108
Add a tube-type skylight $309
Put a recirculating pump under the sink $268
Source: 15 Green Projects for Under $500, The Green Home Guide, www.greenhomeguide.org
REGREEN Residential Remodeling Guidelines 2008, a program and best- practices guide from the American Society of Interior Designers (ASID) and the USGBC, is also available for free from www.greenhomeguide.org.
Growth in Green Home Knowledge Being aware of the range of buyer types is important as you consider how to best serve the buyer. It may surprise you to learn that a large number of today’s consumers consider themselves knowledgeable about green homes. As shown in Figure 1.4, 45 percent of the respondents are self- described as “very aware” of green home building.
This tells you that your clients and customers are likely to have studied some of the issues around green homes. To earn the trust of these high-information consumers, you should be prepared to back up your
13. 1. Marketing to the Green Home Buyer knowledge of green homes with references, sources, glossaries, and current market trends.
Figure 1.4: Knowledge and Awareness of Green
Source: Reprinted with permission of McGraw-Hill Construction SmartMarket Report, The Green Home Consumer: Driving Demand for Green Homes, www.construction.com
Types of Green Home Buyers In NAR’s Green Designation Core Course, we described the following types of green home buyers:
• Economizers: >> Those who are interested in saving on home operating costs through resource management >> Those who think green features will distinguish the property in the market
• Investors: >> Individuals interested in life-cycle cost analysis and value proposition of various green-home features.
14. NAR’s Green Designation Residential Elective Course
• Health-Conscious: >> Those who are interested in the potential health benefits of green living.
• Idealists: >> Those who think a green philosophy is a social responsibility with everyone participating in the conservation of resources for future generations. >> Individuals truly committed to and passionate about the green movement. >> Individuals willing to make sacrifices in order to make green lifestyle choices.
• Lifestyle-Focused: >> Those who feel that living by overall sustainability principles contributes to a more meaningful and comfortable personal lifestyle. >> Individuals supportive of an overall green philosophy and interested in making good decisions about living a green lifestyle.
• Eco-Chic: >> Those who are interested in the status and prestige of green living. >> Individuals interested in owning the latest green feature or gadget, but may not truly subscribe to the core principles of a green philosophy.
• Skeptical/Unaware: >> Those who are skeptical of the green hype, or are unaware of a green philosophy.
15. 1. Marketing to the Green Home Buyer
Exercise Identifying Features for Home Buyer Types
The exercise for this section addresses green features that appeal to various types of green clients and customers. Review the features of a green home. Working in groups, identify the green features to highlight for a particular home buyer type.
Green Home Features
• Limited use of heavy equipment • Extensive use of recycled finish on site materials including glass tile, composite countertops, and • Amended soils depth to 8-10 recycled content drywall inches • Cedar siding (50-year product) • Replanted removed vegetation on the site • Used finger-jointed wood windows, cedar shingles, and • Installed water catchment finger- jointed trim for cabinetry cistern • Extensive disposal plan for • Minimized use of impervious jobsite waste that included surfaces recycling of wood, metal • Dual-flush toilets in bathrooms scraps, drywall, paint, concrete, packaging, and cardboard • Designed for solar heat gain • No carpet used in remodel or • Envelope upgrade resulting in addition super insulated walls and roof • Low-Volatile Organic Compound • ENERGY STAR appliances (VOC) paints and adhesives throughout • Formaldehyde-free cabinetry, • Blower door test to measure air trim, and insulation leakage • Protection of exterior building • Used advanced framing components from moisture • Windows with U-value 0.35 or damage better • Installation of rain screen • Used of Forest Stewardship system Council certified wood products • Mastic sealing of ductwork • Used remilled salvaged lumber
• Refinished existing wood flooring
Source: Reprinted with permission of Master Builders Association of King and Snohomish Counties, Washington, Built Green, www.builtgreen.net
16. NAR’s Green Designation Residential Elective Course
Based on the property description, what features would you highlight for the following buyer types?
Economizers
Investors
Health Conscious
Idealists
17. 1. Marketing to the Green Home Buyer
Lifestyle-Focused
Eco-Chic
Skeptical/ Unaware
Counseling Buyers The overall process and techniques you typically use for counseling sessions can be applied to the green buyer. As with any counseling session, the ultimate goals are to discover and to prioritize the needs and wants of buyers and guide them through the real estate transaction accordingly. Figure 1.5 provides real estate professionals with a green buyer counseling session checklist.
18. NAR’s Green Designation Residential Elective Course
Figure 1.5: Green Buyer Counseling Session Checklist
• What is the primary motivator in terms of your decision to pursue a green home or building? >> Potential operational cost savings? >> Health-related factors? >> Personal lifestyle quality? >> Corporate environmental commitment? >> Commitment to green? >> Potential investment opportunity? >> Seems like the latest trend? >> Combination of the above?
• What ten features or factors do you consider most important in terms of a green home or building? >> How would you prioritize these features or factors? >> Are there any features or factors that do not interest you? >> Are there any features or factors that you are skeptical about? >> Are there any nonnegotiable features or factors?
• Have you lived or worked in a green home or building before? >> What did you like about the experience? >> What did you dislike about the experience?
• What is your preference in terms of proximity to the following: >> Public transportation? >> Major highways or thoroughfares? >> Schools? >> Workplaces? >> Shops and commerce? >> Parks? >> Open space? >> Bike and walking trails?
19. 1. Marketing to the Green Home Buyer
• What is your preference in terms of the following: >> Connection to nature? >> Transit-oriented developments? >> Walkability factor? >> Community? >> Proximity to other office buildings or office parks?
• Is there a certain aesthetic look and feel you’d like to find?
• What is your knowledge base related to green homes and buildings?
• Are you interested in a green certified home or building?
• Are you interested in performing green renovations or retrofits on an existing home or building?
• Are you familiar with the potential grants and incentives available?
• What are your price parameters?
The Source of the Source Being an ethical green real estate professional means making sure the client or customer does not mistake your knowledge of the market as scientific insight. Be very cautious of making statements of fact or claiming expertise on specific green related issues. Instead, refer the buyer to reputable sources of green information, or pose questions for the buyer to think about related to buying green. Figure 1.7 provides possible responses for common buyer questions.
20. NAR’s Green Designation Residential Elective Course
Figure 1.7: Scripts for How to Be the Source of the Source
Client or Buyer Strategy Possible Response Question
“So, if I invest in Put the “Well, some green features have been expensive green features, buyer in the proven by scientific studies to reduce the can I say that I’m saving driver’s seat amount of electricity and other resources the world?” consumed. That’s a good place for anyone to start if you believe it is important to live more efficiently. Let me share with you some of the ENERGY STAR program’s
estimates of how much CO2 emissions you could save by using ENERGY STAR appliances. Once you know what it means
to reduce CO2 emissions in your housing choice, you’ll be better prepared to describe what you are doing for the environment!”
“A high-efficiency water Connect “There are no guarantees of that. Higher heater is going to pay for buyer to efficiency appliances, while proven to be itself in a year or two, scientific beneficial if you calculate life-cycle cost, will right?” authority vary in terms of the savings they deliver, based on the specifics of your situation. It would depend on how much water you are using, the cost of home heating fuel—which can fluctuate—and other factors. I would suggest you look carefully at the manufacturer’s claims and weigh the investment for yourself.”
21. 1. Marketing to the Green Home Buyer
Client or Buyer Strategy Possible Response Question
“I’m leaning toward this Warn buyer “That could be a great feature, but as it’s listing because it says that not to take important to you, I suggest that we seek it has ‘sustainable flooring.’ green claims some verification from the owner or seller’s I believe that we should from the agent about what that means. ‘Sustainable’ not be using any wood homeowner can mean any number of things. Bamboo harvested from forests, but for granted floors are often described as sustainable, reusing existing wood.” as are other non-wood floors. If it is wood flooring, we should look into whether it has a certification from one of the international organizations that offer a certified ‘sustainable’ seal of approval. The owners should have documentation of the flooring source that you can evaluate or ask an expert about.”
“Having insulated interior Manage “Insulated panels in the interior walls and panels and exterior seals will expectations other means of increasing insulation in the mean I don’t have to hear house are great tools for owners seeking my neighbor’s motorcycle higher efficiency. With any home, an energy all night, right?” audit would be required to verify performance of the insulation. For sound? You would have to look into that. I would recommend that you talk to the contractor to find other homeowners with similar installations to get more feedback on how well the system insulates from street noise.”
22. Green Practices 2 in New Home Design 2. Green Practices in New Home Design
2. Green Practices in New Home Design
In This Chapter • Whole building design • Passive design • Design issues and challenges
24. NAR’s Green Designation Residential Elective Course
Whole Building Design
In NAR’s Green Designation Core Course, we stressed that the home or building is an interconnected system: interconnected both as an entity and with the neighborhood, community, and earth. This concept complements a design approach called Whole Building Design. According to the National Institute of Building Sciences, Whole Building Design includes the following objectives3:
• Accessible: Pertains to building elements, heights, and clearances implemented to address the specific needs of disabled people.
• Aesthetics: Pertains to the physical appearance and image of building elements and spaces as well as the integrated design process.
• Cost-Effective: Pertains to selecting building elements on the basis of life-cycle costs (weighing options during concepts, design development, and value engineering) as well as basic cost estimating and budget control.
• Functional/Operational: Pertains to functional programming—spatial needs and requirements, system performance, as well as durability and efficient maintenance of building elements.
• Historic Preservation: Pertains to specific actions within a historic district or affecting a historic building whereby building elements and strategies are classifiable into one of the four approaches: preservation, rehabilitation, restoration, or reconstruction.
• Productive: Pertains to owners’ and tenants’ well-being—physical and psychological comfort—including building elements such as air distribution, lighting, workspaces, systems, and technology.
• Secure/Safe: Pertains to the physical protection of owners and tenants and assets from man-made and natural hazards.
• Sustainable: Pertains to the environmental performance of building elements and strategies.
The Whole Building Design approach requires an integrated design team to give close consideration to the following factors, each of which will be discussed in the following sections:
25. 3 Whole Building Design Guide, National Institute of Building Sciences, www.wbdg.org 2. Green Practices in New Home Design
• Size • Community impact and relationships • Climate • Sun • Lighting • Water • Material selection • Connection to nature
Size While a client or customer deserves choices when deciding on the livability and comfort of a home or building, designers and other real estate professionals should be able to advise that the structure consumes in direct proportion to its size. In other words, while a larger home may be energy efficient, it still consumes more energy, and thus has higher energy costs, than a smaller home.
Community Impact and Relationships The green home or building must not be seen as an entity apart from the community and its sustainability goals in areas such as transportation and the revitalization of greyfields. Considering community impact and relationships, a design team might include the following features in green home or building plans:
• Design that increases density while maximizing livability
• Marketable and affordable design to maximize short- and long-term appeal
• Architectural appeal that contributes to the historical heritage of the community
• Access for carpooling, vanpooling, or support vehicles
• Reserved parking for alternative fuel vehicles
• Parking spaces for shared community vehicles that use alternative fuels
• Electrical vehicle parking and charging stations
26. NAR’s Green Designation Residential Elective Course
• Storage areas for bicycles
• Shower facilities for bicyclists
• Systems that prevent contribution to rainwater runoff issues (green roofs, rainwater harvesting)
• Structural flexibility for alternative future use (condominiums that could become classrooms or office space, for instance)
Climate The design team often conducts or commissions a climate analysis to inform design choices. The climate analysis may include the following factors:
• Historical weather data • Sun paths, patterns, and angles • Rainfall amounts • Wind direction and speeds • Mean daily temperatures • Dew points • Humidity levels • Severe weather patterns
The U.S. has five major climate zones separated by region (see Figure 2.1):
1. Cold and very cold climate zone 2. Hot-dry and mixed-dry climate zone 3. Hot and humid climate zone 4. Marine climate zone 5. Mixed-humid climate zone
27. 2. Green Practices in New Home Design
Figure 2.1: U.S. Climate Zones
Source: U.S. Department of Energy, Energy Efficiency and Renewable Energy, www.eere.energy.gov.
Generally, architects and design teams design green homes according to these climate zones, further considering micro-climates and site specifics. Climate also factors heavily into HVAC system design. See Figure 2.2 for some examples of how climate informs design choices.
28. NAR’s Green Designation Residential Elective Course
Figure 2.2: U.S. Climate Zones and Architectural Design
Climate Considerations Design Approaches
Cold and very • Must accommodate • Solar gain through passive design and site cold both cold winters and orientation hot summers • Impermeable foundations • Ice dams common • Proper attic insulation to prevent • Vapor penetration and ice dams air leakage common • 2 x 6 framing • Basements and crawl • Air barriers and vapor retarders spaces prevalent
Hot-dry and • Intense solar radiation • Awnings, shades, overhangs, and high mixed-dry and large thermal performance windows to avoid solar heat load gain
• Annual precipitation • Xeriscaping low but heavy • Storm water management features downfalls occur • 2 x 4 framing, stucco exterior • Fire risk • Reflective insulation
Hot and • Intense solar radiation • Awnings, shades, overhangs, and high humid and large thermal performance windows to avoid solar heat load gain
• Moisture-laden air • Storm water management features and high rainfall • Impermeable foundations • Housing types vary • 2 x 4 framing, masonry walls finished with greatly, from block stucco or wood or poured concrete walls wall assemblies in Florida to wood • Reflective insulation frames in Texas • Supplemental dehumidification and spot ventilation
29. 2. Green Practices in New Home Design
Marine • Mild temperatures • Passive design and site orientation and moist conditions manages solar-heat gain
• Fog on coast and dry • Xeriscaping inland inland • Impermeable foundations • Basements and • 2 x 6 framing crawlspaces prevalent • Vapor management
• Housing types vary • Reflective insulation
Mixed-humid • Mostly moderate • Passive design and site orientation weather but chilly manages solar-heat gain winters and soaring • Impermeable foundations and structural summer humidity moisture control • Transitional weather • 2 x 4 framing with snowmelts and melt-freeze cycles • Supplemental dehumidification
• Basements and crawlspaces prevalent
Source: U.S. Department of Energy, Energy Efficiency and Renewable Energy, www.eere.energy.gov
Sun Natural light from the sun can reduce or eliminate the need for mechanical heating and cooling systems and artificial lighting. Passive solar design involves using nonmechanical methods to leverage natural sunlight. According to the U.S. Department of Energy, passive solar design consists of the following five elements:
1. Aperture (Collector): The large glass (window) area through which sunlight enters the building. Typically, the aperture(s) should face within 30 degrees of true south and should not be shaded by other buildings or trees from 9:00 a.m. to 3:00 p.m. each day during the heating season.
2. Absorber: The hard, darkened surface of the storage element. This surface—which could be that of a masonry wall, floor, or partition (phase change material), or that of a water container—sits in the direct path of sunlight. Sunlight hits the surface and is absorbed as heat.
30. NAR’s Green Designation Residential Elective Course
3. Thermal mass: The materials that retain or store the heat produced by sunlight. The difference between the absorber and thermal mass, although they often form the same wall or floor, is that the absorber is an exposed surface whereas thermal mass is the material below or behind that surface.
4. Distribution: The method by which solar heat circulates from the collection and storage points to different areas of the house. A strictly passive design will use the three natural heat transfer modes—conduction, convection, and radiation—exclusively. In some applications, however, fans, ducts, and blowers may help with the distribution of heat through the house.
5. control: Roof overhangs can be used to shade the aperture area during summer months. Other elements that control under- and/or overheating include electronic sensing devices, such as a differential thermostat that signals a fan to turn on; operable vents and dampers that allow or restrict heat flow; low-emissivity blinds; and awnings.
See Figure 2.3 for a visual representation of these elements.
Figure 2.3: The Five Elements of Passive Solar Design
5 4
2
1 3
Source: U.S. Department of Energy, Energy Efficiency and Renewable Energy, www.eere.energy.gov
31. 2. Green Practices in New Home Design
Lighting The design team begins by maximizing daylighting (the use of natural light) through strategies such as east/west orientation of the home or building on the site and open floor plans. Daylighting will be explored in further detail later in this chapter.
Water Green homes and buildings are designed to minimize impact on hydrological cycles, conserve water, reduce runoff, and manage and collect storm water for use in landscape irrigation and bathroom facilities. There are many technologies to assist designers in meeting these goals. Several are reviewed in Chapter 3 of NAR’s Green Designation Core Course.
Material Selection Reused, recycled-content, and locally sourced materials are important to meeting green design goals. Designing with material reduction in mind is another strategy to reduce the impact of a home or building on the environment. One such example is the Carsten Crossings subdivision in Rocklin, CA (Case Study 2.1).
Case Study 2.1 Example Approach to Materials and Resources
32. NAR’s Green Designation Residential Elective Course
Carsten Crossings Subdivision Rocklin, CA Builder: Grupe Company Photo Credit: Grupe Company
Highlights • Three- and five-bedroom homes ranging 2,168 – 2,755 square feet in size
• Builders diverted 75% of all concrete, roofing, drywall, and wood waste from the landfill
• Framing lumber and concrete came from local sources
• LEED for Homes certification awarded in January 2007
Source: Reprinted with permission of the U.S. Green Building Council, www.usgbc.org
Connection to Nature The home or building should have a minimal impact on nature. The structure should not disrupt wildlife corridors and local ecology, including watersheds and wetlands, and the owner of the home or the building tenant should feel connected to nature through features such as green roofs and naturescaping.
Passive Design Passive design refers to the use of no mechanical systems or appliances to achieve green goals. Following are some of the primary methods to implement passive design.
Daylighting
• Strategies such as east-west site orientation and open floor plans, optimize the entry of natural light into the home. When properly designed, daylighting integrates with other systems for energy efficiency and resident comfort. Daylighting strategies include:
>> Toplighting (skylights, clerestories) >> Sidelighting (windows, curtain walls) >> Shading devices (overhangs, awnings, trees) >> Low-transmittance windows
33. 2. Green Practices in New Home Design
A properly daylit home or building provides the following benefits:
• Reduces energy consumption for artificial lighting and HVAC. As noted in NAR’s Green Designation Core Course, the energy savings from reduced electric lighting through the use of daylighting strategies in commercial buildings can directly reduce building cooling energy usage an additional 10 to 20 percent4. The Energy Center of Wisconsin’s Daylighting Collaborative conducted a controlled experiment at the Energy Resource Station near Des Moines, Iowa. One test room was configured with standard lighting and another with high performance glazing and other daylighting strategies. The cost savings results are shown in Figure 2.4.
• Optimizes livability and productivity by bringing natural light into the indoor environment and creating views of the outdoors.
• Decreases the need for power generated by pollutant-emitting power plants so home or building is more eco-friendly.
Figure 2.4: Study by the Daylighting Collaborative —Cost Savings
Source: Energy Center of Wisconsin Daylighting Collaborative, “Energy Savings from Daylighting: A Controlled Experiment,” ECW Report Number 233-1 May 2005, http://www.daylighting.org.
Daylighting impacts HVAC systems, artificial lighting, aesthetics, and other systems and qualities of the home or building. A checklist of design considerations when integrating systems with daylighting is provided in Figure 2.5.
34. 4 Whole Building Design Guide, National Institute of Building Sciences, www.wbdg.org NAR’s Green Designation Residential Elective Course
Figure 2.5: Daylighting Design Considerations
• Orientation and footprint of structure
• Climate, region, and general availability of natural light
• Energy consumption and how the structure will use energy
• Urban vs. suburban
• Floor-to-floor/floor-to-ceiling heights
• Window-to-wall ratios
• Placement of glazing
• Toplighting, sidelighting, or both
• Glazing performance considerations such as visible light transmittance
• Sun angles
• Exterior shading and solar control (landscape features, overhangs, vertical fins, reflecting surfaces)
• Interior shading and solar control (venetian blinds, adjustable louvers)
• Integration with electric lighting systems (lighting power densities, controls, and electric lighting design)
• Reduced cooling loads
• Interior design (color, reflectance, furniture selection)
• Overall distribution and variety of lighting
• Floor plan considerations such as how far daylight will penetrate
Source: Energy Center of Wisconsin Daylighting Collaborative, www.daylighting.org
• Solar heat gain management: Solar heat gain, or heating of the home’s interior by the sun, may be desirable or undesirable, depending on the climate and the season. The intent in passive design is to manage solar heat gain to optimize its contribution to conditioning the interior of the structure.
35. 2. Green Practices in New Home Design
• Ventilation: Passive design in terms of ventilation involves creating cross breezes through the house with open floor plans and proper window placements. Proper window placement involves an analysis of the microclimate at the site, including the wind streams.
Exercise Design Challenges
This exercise focuses on design challenges that arise from the issues discussed above. Read each challenge, solution, and take-away and answer the questions that follow.
Scenario 1 Challenge: A real estate professional has a client who is working with a builder on a home in the upper Midwest. To improve energy efficiency, the design team has incorporated extensive use of daylighting into its design. The client raises a concern about the design, however: the daylighting strategy will produce glare in the home if too much light is allowed to enter.
Solution: In an informal capacity, and because he has the vocabulary to communicate with the design team about green design principles, the real estate professional discusses his client’s concerns with the architect, who describes the methods the design team will employ to reduce glare. These methods include carefully placed windows, shading devices, and low-transmittance glass. The real estate professional becomes convinced that the design team’s strategy is wise and will produce an energy-efficient home, so he asks the architect to communicate directly with his client about reducing glare.
Take-away: Clients and customers may be uninformed about green design strategies. They will be occupying the home, therefore understanding how it functions is critical to their comfort as well as to the durability and sustainability of the home. Real estate professionals should provide guide clients and customers to reliable information on green design, construction, operations, and maintenance and refer clients and customers to experts when making design decisions.
36. NAR’s Green Designation Residential Elective Course
What other aspects of a green dwelling might cause confusion in a client or customer?
What is your role in clarifying confusion and providing education?
Scenario 2
Challenge: To create a sustainable, tight building envelope, the design team would like to employ framing techniques that include using all FSC- certified framing lumber. They find that the approach will not be cost- effective, however, because the home is located in a rural, mountainous area where FSC-certified lumber is not readily available; it would be very expensive to transport the lumber through the mountains.
Solution: Conventional wood is used for framing. FSC wood is used for special finishes because it is more cost effective to transport small quantities. Environmentally preferable products, such as cork floors, tiles made from recycled glass, and 100 percent recycled-content fixtures are used extensively throughout the rest of the home.
Take-away: Design teams have an array of options to meet sustainability goals within the project budget, and each option has its pros and cons. Solutions should be evaluated in relation to the green goals both individually as well as in the context of the totality of the home. The sum of a successful set of solutions to green design challenges makes a successful green home.
37. 2. Green Practices in New Home Design
Besides cost, what else might have factored into the design team’s decision to use conventional wood for framing and environmentally preferable products in other applications?
What are some ways to arrive at successful solutions to challenges in green design?
Notes:
38. Green Practices 3 in Home Construction 3. Green Practices in Home Construction
3. Green Practices in Home Construction
In This Chapter • Innovative methods and materials • Achieving energy efficiency • Factors for calculating cost/benefit
40. NAR’s Green Designation Residential Elective Course
Innovative Construction Methods and Materials Green construction relies on innovation to produce homes that outperform conventional structures. The challenges and opportunities of green building related to the characteristics of a site or a client’s energy efficiency goals, for example, will require design and construction teams to work together to conceive innovative solutions to unique problems.
The construction industry as a whole is on a learning curve when it comes to green construction, and these unique problems are producing increasingly common methods and materials that can be applied to many projects. Let’s take a look at some of the innovative methods and materials that are driving green construction to new levels of energy efficiency, livability, durability, and sustainability.
Modular Building and Panelized Construction Materials Modular building provides many green benefits, although the idea behind modular construction—homes produced in pieces in a factory and then shipped and assembled at the construction site—has negative connotations among clients and customers. Green construction, however, is using the principles of modular construction, including high levels of quality assurance and systemization, to reduce the amount of material required for construction and to produce tight, energy efficient homes. Modular construction is often more cost effective as well.
Panelized construction is also an innovative method that can help accomplish green goals. Figure 3.1 shows some panel construction materials currently in use.
41. 3. Green Practices in Home Construction
Figure 3.1: Panel Construction Materials
Material Description Costs Benefits
Structural • Thick layer of • Additional • Quick, easy Insulated foam sandwiched construction costs installation Panels between two layers • Installation of wiring • Structural framing (SIPs) see of Oriented Strand and plumbing may that reduces the Figure 3.2 Board (OSB) require special tools amount of sawn • Structural framing, and techniques lumber insulation, and • High insulation exterior sheathing value and • Panels may also be airtightness assembled with eco- resulting in energy friendly cores such efficiency as wheat straw
Precast • Concrete wall or • $55 to $65 per linear • Durability Concrete foundation panel foot • Watertightness Panels factory-cast • Crane for installation • Installation in any See Figure • Some solid concrete, • Shipping may be weather 3.3 some reinforced cost prohibitive in with bars • Energy efficient certain regions • Quick installation
Insulating • Foam forms filled • $1.75 to $3.50/ft2 • Durability Concrete with reinforced • Installation costs • Energy efficient Forms concrete and more than wood (ICFs) reinforcement bar • Comfort framing • Variety of uses, • Wind and seismic • Learning curve on including structural resistance installation raises and foundation walls labor costs on first few installations
42. NAR’s Green Designation Residential Elective Course
Straw-Board • Solid-core • $.080 to $0.90/ft2 • Thermal and Panels compressed acoustic • Some wheat or rice insulation manufacturers straw overseas • Fire and termite resistance • Some difficulty cutting • Eco-friendly
• Painting may • Energy efficient require several • IAQ coats due to improvement absorbability
Source: Reprinted with permission of NAHB Research Center’s Tool Base Services,www.toolbase.org
Figure 3.2: Structural Insulated Panels (SIPs)
Source: Reprinted with permission of Structural Insulated Panel Association, www.sips.org
43. 3. Green Practices in Home Construction
Figure 3.3: Precast Concrete Panels
Source: Reprinted with permission of NAHB Research Center’s Tool Base Services, www.toolbase.org
Straw-Bale Homes Bales of straw tightly compressed and then finished with a material such as stucco offer an inexpensive, eco-friendly construction material. Straw- bales can be used for infill or load-bearing applications. While the method has gained attention in the green construction industry, only a few states have approved its use, particularly for load-bearing applications. Straw is widely available and the method provides fire and termite resistance, along with a high level of insulation, so interest in the method is likely to grow, forcing states and municipalities to respond with consistent and reasonable regulations.
Optimum Value Engineering (OVE) OVE is an advanced framing technique (Figure 3.4) that uses a number of methods to reduce lumber used for framing and create more room for insulation in exterior walls, thus eliminating cold spots susceptible to condensation and mold growth. OVE techniques such as increasing wall and floor framing spacing must be used with care for structural safety and optimum performance.
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Figure 3.4: Advanced Framing Techniques
Source: U.S. Department of Energy, Energy Efficiency and Renewable Energy, www.eere.energy. gov, adapted from Building Science Corporation.
45. 3. Green Practices in Home Construction
Recycled Wood/Plastic Composite Lumber Lumber made from recycled plastic garbage bags and waste wood fibers can be used in doorjambs, exterior decking and molding, fencing, and other areas. The material is durable, moisture-resistant, and contains no toxic chemicals.
Roofing Systems
• Cool roofs: The sun’s rays can increase heat gain in a home and overwork air conditioning. Cool roofs use reflective coatings, shingles, and tiles and vegetation to reduce this effect and increase energy efficiency.
• Single-ply membranes: These manufactured sheathing membranes are watertight and durable and provide an efficient alternative to built-up roof systems.
• Solar shingles: Roof shingles made from thin-film photovoltaic cells can be used to transfer sunlight into electric energy. Although they show promise, they can actually add to a home’s thermal load. Climate and thermal barriers will determine their applicability.
Soil-Based Materials
Adobe, cob, rammed earth, and soil-cement have been used for centuries in home construction but are gaining in popularity as consumers look for eco-friendly alternatives to wood and plastics. Construction can be complex and labor-intensive, and the method must be appropriate for the climate and soil mixture available in the area.
Energy Efficiency Energy efficiency is a primary goal of green consumers. As explained in NAR’s Green Designation Core Course, an energy model predicts how a design for a home or building performs against a benchmark such as a comparable conventional structure or efficiency standards. Energy models may be conducted on-site or virtually. The ENERGY STAR rating system provides a Web-based tool called Target Finder, which generates a score benchmarked against existing buildings. Other ratings use checklists for diagnostics and industry metrics such as those provided by ASHRAE as standards.
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Skill Builder
tip 1 Home Energy Efficient Design (HEED) Program
The University of California, Los Angeles has developed Home Energy Efficient Design (HEED), a tool that allows clients and customers, with their design team, to assess how much money they can save by making green design choices. The computer program allows users to input a floor plan and explore various design options to maximize energy savings and reach green goals. HEED is not copyrighted and may be downloaded for free at www2.aud.ucla.edu/energy-design-tools/
HERS Rating A Home Energy Rating System (HERS) index, developed by the Residential Energy Services Network (RESNET), begins in the preconstruction phase. A certified rater evaluates the design and construction plans using specialized software to generate a projected rating. The rater then works with the builder to optimize energy efficiency. Once the home is complete, the rater will conduct inspections and tests, including a blower door test and duct test, and give the home a HERS Index, formerly known as a HERS Score (see Figure 3.5). The lower the index number, the more energy efficient the home.
Homes rated before July 1, 2006 were evaluated using a 1993 energy model; these homes were awarded a HERS Score. Homes rated after July 1, 2006 are evaluated using a 2006 energy model and are awarded a HERS Index. The old HERS Score is gradually being phased out, therefore, it is important to verify which system was used to evaluate a home’s energy rating.
Benefits of obtaining a HERS Rating include:
• Obtaining a widely accepted rating • Using a rater who is qualified and certified • Quantifying energy efficiency goals and verifying that they are met • Qualifying for energy mortgage • Qualifying for federal energy efficiency tax credits • Meeting ENERGY STAR standards
47. 3. Green Practices in Home Construction
Skill Builder
tip 2 Finding a Certified HERS Rater
To find a certified HERS Rater, visit the following link, which allows you to search by state: www.resnet.us/directory/raters.
Figure 3.5: HERS Index
Sources: Residential Energy Services Network, www.natresnet.org; ENERGY STAR, www.energystar.gov.
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Determining Energy Performance in Built Homes An energy assessment identifies and predicts issues with energy performance in a home or building using methodical methods and technological tools. Energy assessment tools include, but are not limited to, blower door tests and duct blaster tests. For more information, see Chapter 3 in NAR’s Green Designation Core Course.
An energy survey is a quick and easy do-it-yourself tool that allows clients and customers and real estate practitioners to identify energy efficiency issues and goals, as well as the need for comprehensive energy diagnostics.
Hot Water Heaters Energy efficient hot water heaters are becoming more in demand with the rise in green awareness. The technology is advancing, with several types now available. Depending on climate and site orientation, the water heater may be completely dependent on solar energy or supplemented by a conventional or tankless heater. Water heater technologies include, but are not limited to, drain water heat recovery systems, on-demand water-circulation pumps, and tankless water heaters.
Drain Water Heat Recovery Systems Drain water heat recovery systems (Figure 3.6) recover the heat from used water, reducing the energy required to heat fresh water.
49. 3. Green Practices in Home Construction
Figure 3.6: Drain Water Heat Recovery System
Source: U.S. Department of Energy, Energy Efficiency and Renewable Energy, www.eere.energy.gov
Skill Builder
tip 3 Hot Water Heater and Pipe Insulation
Wrapping a water heater with a jacket of insulation increases energy efficiency. Note that electric water heaters are easier to wrap than gas- or oil-fired water heaters. Wrapping insulation or pipe sleeves around hot water pipes prevents heat loss and increases the temperature of the water. Increased temperature decreases the time required to wait for hot water at the faucet, conserving water.
On-Demand Water-Circulation Pumps On-demand water circulation pumps (Figure 3.7) rapidly move water from a water heater to fixtures. The device saves water because the user does not have to wait for the water to become hot.
50. NAR’s Green Designation Residential Elective Course
Figure 3.7: On-Demand Water Circulation Pump
Source: U.S. Department of Energy, Energy Efficiency and Renewable Energy, www.eere.energy.gov
Tankless Water Heaters A tankless water heater (Figure 3.8) is a type of on-demand water heater. When the hot water faucet is turned on, cold water flows through a heating device and directly to the faucet. Tankless water heaters are more energy efficient because electricity or gas is not used to maintain the temperature of water in a tank. They can also contribute to water conservation. Because the heating unit is usually located close to the faucet, there is no wait time for hot water.
51. 3. Green Practices in Home Construction
Figure 3.8: Tankless Water Heater
Source: “A Consumer’s Guide to Energy Efficiency,” U.S. Department of Energy, www. http://apps1.eere.energy.gov/consumer/your_home/water_heating
Tankless water heaters deliver a continuous flow of hot water at a rate of approximately 2–5 gallons per minute.
It may be necessary to install several units in a large home to meet the household’s needs. Tankless water heaters are particularly useful for remote bathrooms or hot tubs, as a booster for appliances, or as a backup for a solar water heating system.
Retrofitting,R emodeling, and Renovating Existing Homes Whether working with clients or customers on the purchase or sale of an existing home, or advising them as part of a relationship management program, real estate professionals with NAR’s Green Designation should be able to advise on retrofitting, remodeling, and renovating options. Knowledge of green retrofitting, remodeling, and renovating is essential
52. NAR’s Green Designation Residential Elective Course
because the median age of residential housing units in the United States is around 25 years, according to the U.S. Census Bureau. A primary activity of a real estate professional with NAR’s Green Designation will be working with clients and customers who want to incorporate green features in this aging stock of existing homes.
Retrofitting Retrofitting, as used in this chapter, refers to lower-level upgrades to improve energy efficiency and IAQ, conserve resources, and meet other green goals. Retrofitting options include: • Programmable thermostats • CFLs • Lighting controls such as timers, dimmers, and occupancy sensors • Hot water heater jackets • ENERGY STAR appliances • Duct sealing • Rain barrels • Retrofit kits for wood-burning fireplaces • Water filters on faucets • Low-flow faucets • Weather-stripping and caulking
Remodeling Remodeling refers to higher-level options that change the appearance of the home and have a greater impact on energy efficiency, IAQ, and resource conservation. Remodeling options include:
• ENERGY STAR windows and skylights • Formaldehyde-free, high R-value insulation • Whole-house fan • Installation of recycled-content flooring • On-demand hot water heater • Painting with no-VOC paints • Landscaping with indigenous plants • Shade trees according to passive design principles • High efficiency heating and cooling system
53. 3. Green Practices in Home Construction
The REGREEN Guidelines suggests conducting a client interview prior to any remodeling project. See Figure 3.9.
Figure 3.9: Interviewing Clients Prior to Remodeling Projects
• What motivated you to buy this house?
• What precipitated the desire to remodel?
• Why do you want to remodel “green”?
• What do you like about the house?
• What things about the house no longer work for your needs or lifestyle?
• What results do you expect from your renovation?
• Is your house moldy, dusty, dry, or damp?
• How long are you planning to live in the house?
• What compromises have you made due to existing problems?
• Are health issues driving your remodeling project?
• What are your attitudes toward the operations, maintenance, and cleaning of your home?
• Are you happy with the quality of finishes and furnishings, and what are you looking to keep and upgrade?
• Is increased water efficiency a goal?
• Does the house provide you with the desired amount of daylight and sunshine?
• Do you think your home is connected with nature?
• Do your utility bills seem inappropriately high?
• Are there hot or cold spots in your house?
• Do you have to wait a long time for hot water to reach certain fixtures?
• What thermostat setting do you use in the summer and winter?
• What is your budget for the project?
• What is your payback threshold, or how many years do you expect energy savings to “pay back” the investment in the project?
Source: Adapted with permission from the USGBC and ASID, REGREEN Residential Remodeling Guidelines, 2nd Ed, www.regreenprogram.org
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Renovating Renovating refers to the installation of advanced systems, in addition to the retrofitting and remodeling options, that substantially change the performance of the home. Renovating options include:
• High efficiency toilets
• Reflective roof
• Energy improvements within walls
• Radiant floor heating
• Photovoltaic system
• Solar water heating
• Home addition that utilizes daylighting and other passive design principles
Each level of upgrades will come with certain costs and benefits, and each client or customer will value some features or options over others. Real estate professionals must work with clients and customers and other professionals if necessary to determine what level of home improvement is appropriate. They should discuss needs, goals, timeline, budget, and upgrade options, all of which factor into the cost/benefit determination for the project.
Of course, if the costs of extensive renovations that include advance systems exceed the costs of demolishing or deconstructing the home and rebuilding, new construction on the existing site may be an option to explore with the client or customer.
Challenges Retrofitting, remodeling, and renovating present certain challenges and opportunities since design and construction teams must work with an existing site and structure. Clients and customers, along with the team of real estate professionals advising them, must consider factors such as the age of the home, its architectural style, and its existing systems when identifying green goals and formulating a plan to reach them. Specific challenges include the following:
• Changing elements of the building envelope is often impossible or cost-prohibitive
55. 3. Green Practices in Home Construction
• Changing orientation of the entire home is often impossible
• Installation of advanced systems such as ground-source heat pumps and radiant floor heating may be cost-prohibitive
• Clients are often conflicted about whether keeping certain aspects or features of a home in place is “more green” than gutting and replacing
• Work must be scheduled according to the health, comfort, and availability of clients and customers, which may impede coordination among design and construction professionals
• Clients may be susceptible to greenwashing when looking for quick retrofits
• Remodeling and renovating must be sequenced according to client preferences, which may not conform precisely to green principles or design best practices
• IAQ issues often arise with remodeling and renovating when contractors are uninformed about proper ventilation
• Integration of new systems with old systems requires skill and innovation
• Clients often have difficulty balancing priorities with budgetary considerations
• Zoning laws and building codes may limit remodeling and renovating options
Cost/BenefitA nalysis Cost/benefit analysis of new construction is difficult for several reasons, including: • Lack of data • Unquantifiable benefits (health, comfort) • Different client or customer value perceptions
It is generally acknowledged that green homes currently come with a cost premium for new construction in the range of 1–6 percent, depending on green goals, the site, and methods and materials used. Costs will likely decline as architects, designers, and builders learn new techniques; as building regulations are modified to approve green construction methods; and as materials become more available. Benefits will be quantified through studies and will shift with clarification of myths and misperceptions.
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Cost/benefit for green retrofitting, remodeling, and renovating will depend on the extent of the project and the value expectations of the clients and customers. There are also learning curve and motivation factors associated with operating and maintaining green systems that will impact cost/benefit. For instance, if a client installs an evaporative cooler but fails to have the drip pans emptied and cleaned, the unit can cause an IAQ problem such as mold growth that in effect negates the energy efficiency benefits of the system.
Another consideration is up-front costs versus long-term benefits. Some clients and customers will be willing to spend the money on advanced systems if they are able to see the costs from a life-cycle procurement perspective. Long-term benefits may only apply, however, if a client or customer plans to live in the home long enough to realize the benefits.
Life-Cycle Procurement Costs One concept to emphasize when working with clients and customers on retrofitting, remodeling, and renovating is life-cycle procurement costs or life-cycle cost analysis. This means considering the return on investment (ROI) and payback period of a retrofitting, remodeling, or renovating option. The concept of life-cycle procurement costs may apply to an individual system or appliance or to the project as a whole. Costs for purchasing and installing a solar hot water heater, for example, should be weighed against reductions in utility expenses throughout the expected life of the system. The expense of the entire project should be weighed against all savings related to energy efficiency. Some clients and customers will also want to consider unquantifiable benefits such as the prevention of illnesses and the conservations of resources. The charts in Figures 3.10-3.12 show payback times, cost savings, and ROI numbers for each retrofitting, remodeling, and renovating option.
Note that tools are available through ENERGY STAR and other sources to estimate cost/benefit for green design approaches, construction methods, systems, and appliances. For a detailed, comprehensive cost/ benefit analysis, however, real estate professionals should refer clients and customers to experts.
57. Figure 3.10: Level 1 Retrofitting
Upgrade Payback Time Added Costs Annual Savings 10 Year Savings 1 Year ROI in Years
Programmable 0.6 $115 $180 $1,800 156.5% thermostat
CFLs 0.8 $60 $80 $800 133.3%
Hot water 0.8 $25 $30 $300 120% heater jacket
Low flow 0.9 $180 $300 $3,000 111.1% shower heads
Heating system 1.1 $200 $180 $1,800 90% tune-up
Duct sealing 1.5 $450 $300 $3,000 66.7%
ENERGY STAR 1.5 $20 $13 $130 65% dishwasher
58. 59.
Water filter 1.9 $200 $104 $1,040 52% instead of bottled water
High efficiency 2.0 $50 $25 $250 50% toilets
Total Savings Payback Time Added Costs: Annual 10 Year ROI: and Average in Years: Savings Savings: Payback/ROI
1.2 $1,300 $1,212 $11,120 93.8%
Source: Reprinted with permission of www.GreenandSave.com Figure 3.11: Level 2 Remodeling
Upgrade Payback Time Added Costs Annual 10 Year Savings 1 Year ROI in Years Savings
Solar-powered path and garden lights 2.1 $375 $176 $1,760 46.9%
ENERGY STAR windows 2.3 $700 $300 $3,000 42.9%
ENERGY STAR skylights 2.3 $70 $30 $300 42.9%
Formaldehyde-free, high R-value 2.5 $750 $300 $3,000 40% insulation in walls
Formaldehyde-free, high R-value 2.5 $750 $300 $3,000 40% insulation in basement walls
Duct insulation 2.5 $450 $180 $1,800 40%
Solar attic fan 2.5 $500 $200 $2,000 40%
CFLs 2.7 $108 $40 $400 37%
60. 61.
No-VOC paints 2.8 $70 $25 $250 35.7%
Low flow faucets 3 $300 $100 $1,000 33.3%
High performance water heater 3.1 $150 $48 $480 32%
Air leakage sealing 3.1 $554 $180 $1,800 32%
Water filters for whole house 3.2 $1,000 $312 $3,120 31.2%
Whole-house fans 3.6 $450 $125 $1,250 27.8%
On demand hot water heater 3.8 $450 $120 $1,200 26.7%
High efficiency furnace 3.8 $1,145 $300 $3,000 26.2%
Shade trees 4 $1,200 $300 $3,000 25%
ENERGY STAR clothes washer 4.3 $300 $72 $720 24%
Recycled mulch 4.5 $172 $38 $380 22.1% ENERGY STAR ceiling fans 5 $300 $60 $600 20%
Attic and ceiling insulation 5 $600 $120 $1,200 20%
ENERGY STAR refrigerator 5 $30 $6 $60 20%
High efficiency heat pump 5 $1,000 $200 $2,000 20%
Small-scale greywater system 5 $300 $60 $600 20%
Bamboo floors 5 $525 $105 $1,050 20%
Window treatments, including shades 5 $300 $60 $600 20% and thermal curtains
Recycled-fiber carpeting 5.6 $280 $50 $500 17.9%
Rainwater collection system 6 $120 $20 $200 16.7%
Composting 6.5 $325 $50 $500 15.4%
FSC-certified decking 6.5 $899 $138 $1,380 15.4%
62. 63.
Thru-wall room-to-room fans 6.6 $66 $10 $100 15.2%
IAQ measures, including new HVAC 6.6 $250 $38 $380 15.2% filters
Tubular skylights 6.7 $300 $45 $450 15%
Total Savings and Average Payback/ROI Payback Time Added Costs: Annual 10 Year Savings: 1 Year in Years: Savings: ROI:
4.2 $14,789 $4,108 $41,080 27.2%
Source: Reprinted with permission of www.GreenandSave.com Figure 3.12: Level 3 Advance System Renovating
Upgrade Payback Added Annual 20 Year 1 Year ROI Time in Costs Savings Savings Years
High efficiency toilets 6.7 $150 $23 $450 15%
Reflective roof 6.7 $2,000 $300 $6,000 15%
Formaldehyde-free insulation in double walls 7.5 $900 $120 $2,400 13.3%
Radiant floor heating 7.3 $4,000 $550 $11,000 13.8%
Thermal mass 7.5 $3,000 $400 $8,000 13.3%
Southern overhangs 8 $1,440 $180 $3,000 12.5%
Solar water heater 8.9 $2,500 $280 $5,600 11.2%
Ground-source heat pump 10 $30,000 $3,000 $60,000 10%
Cross ventilation 10 $1,200 $120 $2,400 10%
64. 65.
Green roof 10 $8,000 $800 $16,000 10%
Large-scale water conservation, including 10.2 $2,200 $216 $4,320 9.8% rain barrels and greywater system
Photovoltaic system 10.8 $13,000 $1,200 $60,000 9.2%
Total Savings and Average Payback/ROI Payback Added Annual 20 Year 1 Year ROI: Time in Costs: Savings: Savings: Years:
8.6 $68,390 $7,189 $179,170 11.9%
Source: Reprinted with permission of www.GreenandSave.com 3. Green Practices in Home Construction
Exercise Cost/Benefit
This exercise focuses on factors for calculating cost/benefit and identifying client and customer value perceptions.
Scenario A real estate professional is working with a client to build a home on a lot she owns. She would like to use SIPs, but wants to get a general sense of the costs and benefits of the materials. Without telling her what the client should or should not do, the real estate professional wants to give her the information she needs. The real estate professional directs the client to the builder, but has a discussion with her first to help the client understand what she wants to do.
What questions should the real estate professional ask the client?
How can the real estate professional best facilitate the interaction between the client and the builder?
66. Valuation and 4 Incentives for Green Homes 4. Valuation and Incentives for Green Homes
4. Valuation and Incentives for Green Homes
In This Chapter • Developing price proposals and offers • Green home appraisals • Energy efficient mortgages • Incentives and rebates
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Developing Price Proposals and Offers It is generally acknowledged that green homes provide many benefits to the owner and the environment, however, there is no simple formula that identifies the value of specific green features. Your role as a real estate professional is to help guide your clients and customers in arriving at realistic green home prices and offers that reflect the green benefits, yet remain competitive in the market.
In earlier chapters we discussed factors that contribute to the cost/benefit analysis of new and existing green homes. Many of those factors can also be applied to the process of developing price proposals and offers for sellers and buyers.
Let’s explore a list of considerations to keep in mind throughout this process:
• Where is the home located? Remember that many buyers consider location the most important feature of a home. Also consider the prevalence of green homes in the: >> Geographic area >> Local housing market >> Neighborhood
• Does the home have a green certification?Certifications assure that green standards have been met. It may be possible to command a higher price for true certified homes. Consider: >> National programs >> Local programs
• What are the home’s green features? Remember that value perceptions differ. Consider: >> What green features appeal to a wide range of buyer types? >> How many features are geared toward cost savings? >> What features may be unique to the homeowner’s preferences?
• What green benefits can be quantified? Quantifiable data may help support the decision to increase a home’s price. >> Have these features been verified or rated by a third party? >> What documentation exists? >> Is there data available on cost savings or projected cost savings,
69. 4. Valuation and Incentives for Green Homes
such as monthly utility bills? . Can you obtain comparable data on similar homes in the area?
• How much money was spent on green upgrades? For remodeled or retrofitted homes, upgrade costs may provide a benchmark for increasing resale value. >> Have the owners noticed a payoff? What was the payback period? >> Have maintenance costs decreased? >> Are rebates or tax incentives available?
• What is the ecosystem? In addition to the property itself, it is important to be aware of the broader ecosystem. Ecosystem valuation uses economics to help make decisions on environmental programs. For additional information, reference the following Web site: www. ecosystemvaluation.org.
Exercise: Pricing a Green Home
The exercise for this section focuses on pricing a green home. Work in groups to review the property information of your new client’s home as well as three comparable properties. Based upon the information provided on the following page, determine a price proposal for the home and answer the questions below.
What price should you list for your client’s home? Why?
What factors did you consider when making your decision?
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What additional information would be helpful in determining an appropriate list price?
Market Area All properties are in Bellevue, Washington. Bellevue is the fifth largest city in Washington with a diverse population of 120,000. There are numerous high-tech and retail headquarters within the city, as well as a vast network of green spaces and recreational facilities.
71. Property to List Comparable 1 Comparable 2 Comparable 3
Year built 1968 1957 1963 1978
Bedrooms/baths 3, 2 3, 2 ½ 3, 2 3, 2
Square feet 1,300 1,500 1,550 1,250
Exterior Brick Wood Wood Brick
Heat source Electric Natural Gas Natural Gas Electric
Taxes (last year) $2,400 $2,100 $3,000 $2,220
Average utility $200 $200 $275 $250 bill per month
72. 73.
Green upgrades Replaced all New tankless hot ENERGY STAR Certified wildlife habitat in windows with water heater refrigerator and backyard low-e dual-pane Master bedroom dishwasher Dual-flush toilets in both New bamboo windows replaced New FSC certified wood bathrooms floors in living/ with low-e dual- kitchen cabinets Low-flow showerheads in dining room pane New recycled glass both bathrooms New low-VOC countertops carpet installed in bedrooms
Cost of green $10,000 $5,000 $15,000 $3,000 upgrades
Other features .5 miles from 2 miles from Block from desirable Southern facing exposure shopping and bus major Interstate elementary school Lots of natural light lines Large patio 1 mile from shopping Fireplace 3 year old roof Security System and bus lines Fireplace Security system
Sale price $402,000 $418,500 $379,000 4. Valuation and Incentives for Green Homes
Green Home Appraisals While many builders, real estate professionals, and homeowners realize the value of green homes, appraisers are just starting to include green features and improvements in home valuations.
Practitioners report that determining green home prices can be difficult due to the lack of available data on the relatively recent green housing trend. The potential benefits of green homes, such as energy savings, reduced maintenance costs, and improved comfort point towards an investment worth making. But will buyers really pay a premium?
Anecdotal reports certainly indicate that green homes are able to command a higher price tag. Seattle-area GreenWorks Realty reports that environmentally certified, or ECert, homes in the area it serves are able to sell faster and for more money than non-green homes based upon reports from the Northwest Multiple Listing Service (NWMLS) that now has green design search features within its property listing database. For example:
• New construction ECert single-family homes sold in 18 percent less time, sold for 4 percent more, and were 37 percent more valuable (factoring in square footage)
• New construction ECert condominiums sold for 3 percent more and were 28 percent more valuable (factoring in square footage)
Challenges There are many challenges to arriving at a universal set of green valuation standards, especially for an industry that relies upon measurable data and quantifiable results. For example:
• Lack of comparable sales data
• Lack of data that shows value of green buildings or features
• Variety of green building rating systems
• Valuing green buildings over time, not just on initial construction or improvement costs
• Appraiser perspective is geared towards lenders, so caution is required when placing a value on a building. Traditional methods are often used
• Need for appraiser education related to green building concepts and performance measures
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Opportunities While basic appraisal methods are valid, the industry acknowledges a need to consider new green factors in the valuation process. Several initiatives are under way to help address some of the challenges listed above:
• Vancouver Valuation Accord (VVA) >> Practitioners from valuation, appraisal, and related industries met in March of 2007 to discuss critical issues and challenges >> VVA represents formal expression and commitment by signatories to advance understanding, knowledge, education, and practices about valuation and sustainability >> Agreed to develop guidelines and processes that embed sustainability within real estate valuation practices >> www.vancouveraccord.org
• Uniform Residential Appraisal Report (URAR) >> Energy-efficient features can be reflected on latest URAR form >> Added based on discussions with the U.S. Environmental Protection Agency and ENERGY STAR Homes program
• Education Opportunities >> Appraisal Institute offering “An Introduction to Valuing Green Buildings” seminar approved by the U.S. Green Building Council Education Provider Program
Green Home Mortgages The term “green mortgage” generally refers to the concept of allowing the home buyer or owner to credit a home’s green features when applying for a mortgage. In truth, the concept is more accurately referred to as an energy efficient mortgage, as energy efficiency features and benefits are primarily targeted as part of these mortgage programs.
Energy Efficient Home Mortgages (EEMs) With energy efficient mortgages, the notion is that improved energy efficiency will contribute to lower monthly utility costs, allowing the home buyer to either qualify for a larger mortgage or finance energy improvements. According to the Environmental Protection Agency (EPA), there are two basic types of energy efficient mortgages:
• Energy Efficient Mortgage (EEM) >> Targets new homes that are already efficient >> Stretches debt-to-income qualifying ratios on loans >> Allows borrowers to qualify for a larger loan amount and purchase a
75. 4. Valuation and Incentives for Green Homes
higher-priced home based on the same monthly income
• Energy Improvement Mortgage (EIM) >> Targets existing homes that will have energy efficiency improvements made to them >> Allows borrowers to use the money saved on utility bills to finance energy improvements and include those costs in the mortgage without increasing the down payment
Energy efficient mortgages require a home energy rating, such as a HERS report, in order to verify that the home is energy efficient. With existing homes, qualification is dependent on energy savings exceeding the cost of improvements. Additionally, the funds for improvement are not released until an inspector verifies that the improvements are installed and will achieve the desired energy savings.
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Figure 4.1: Types of EEMs
Conventional • Offered by lenders who sell their loans Fannie Mae EEM to Fannie Mae and Freddie Mac www.fanniemae.com • Allows the lender to increase the Freddie Mac borrower’s income by a dollar amount www.freddiemac.com equal to the estimated energy savings
• (Fannie Mae) Adjusts value of home to reflect the value of energy efficiency
FHA EEM • Allows lenders to add 100 percent of U.S. Department of the additional cost of cost-effective Housing and Urban energy improvements to an already Development (HUD) approved mortgage loan www.hud.gov
• Costs may not exceed $4,000 or 5 Manufactured percent of the value of the home, up Housing Research to a maximum of $8,000, whichever is Alliance has greater information on FHA • No additional down payment required EEMs for ENERGY STAR qualified • FHA loan limits won’t interfere with the manufactured process of obtaining the EEM homes. • Available for site-built as well as for www.mhrahome.org manufactured homes
• Applications must be submitted to the local HUD Field Office through an FHA- approved lending institution
VA EEM • Available to qualified military personnel, U.S. Department of reservists, and veterans for energy Veterans Affairs improvements to existing homes www.homeloans.va.gov
• Caps energy improvements at $3,000 to $6,000
Source: U.S. Environmental Protection Agency and the U.S Department of Energy’s ENERGY STAR program, www.energystar.gov.
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EEM Concerns While there are many benefits to EEMs, practitioners report that in practice, they are often difficult to implement due to the stringent criteria and complex requirements. Unfortunately, EEMs are not widely used and it is often easier to secure funding in other ways.
Other Green Home Mortgage Options Some lenders offer discounted closing costs to help incent buyers who purchase a green home. For example, Bank of America’s Energy Credit Mortgage Program offers $1,000 back if the home meets ENERGY STAR specifications. Other providers offer similar services. Practitioners report that it may also be possible to negotiate with local lenders to arrive at creative solutions together. For example:
• Credit on the cost of a HERS home energy rating
• Credit for using a list of approved vendors to install energy improvements
• Credit on the cost of energy improvement inspector verification
• Reduction in closing costs, interest rates, or other fees
Skill Builder
tip 4 Green Education Opportunities
The real estate professional has an opportunity to educate home buyers on the various green mortgage options available and to spread awareness. Due to the evolving nature of green home mortgage options, as well as state and local specific programs that may be available, it is important to stay up-to-date on current green home mortgage trends and opportunities.
Resources that may be helpful include: • ENERGY STAR: www.energystar.gov
• Residential Energy Services Network: www.resnet.us
• U.S. Department of Housing and Urban Development: www.hud.gov
• Fannie Mae: www.fanniemae.com
• Freddie Mac: www.freddiemac.com
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• Newspaper and magazine articles
• National Association of REALTORS® news updates and publications
• Real estate blog sites
• Lending institutions and banks
• State and local Web sites and resources
Homeowner Incentives In addition to the benefits of living in a green home, there are often federal, state, and local financial incentives available that make owning a green home an even more attractive option.
Federal Programs The Energy Policy Act of 2005 was implemented to help address the growing energy concerns in the United States. As part of this act, residential tax credits were available for energy efficient home improvements such as windows, doors, roofing, insulation, HVACs, and so forth.
The federal “Emergency Economic Stimulus Stabilization Act of 2008” extended numerous provisions for energy efficiency incentives and tax credits both for new and existing residential and commercial properties.
State and Local Programs The real estate professional may use information from the following resources to help guide clients and customers to specific state and local opportunities:
79. 4. Valuation and Incentives for Green Homes
Figure 4.2: Homeowner Incentives
Database of State • Provides information on state, local, utility, and federal Incentives for incentives that promote renewable energy and energy Renewables & Efficiency efficiency (DSIRE) • Can sort by homeowner incentive summaries www.dsireusa.org
EPA • Provides sources of funding for green building available at www.epa.gov/ the federal, state, and local levels greenbuilding/tools/ • Targeted towards homeowners, industry government funding organizations, and nonprofits
• Lists grants, tax credits, loans, and other programs
ENERGY STAR partners • Provides listing of ENERGY STAR partners that offer www.energystar.gov special sales tax exemptions, credits, or rebates to encourage the purchase of energy efficient products
• Can sort by ZIP code
Local National • May have local information available Association of Home Builders (NAHB) organizations www.nahbgreen.org
National Association of • Provides information on state-specific resources REALTORS® Government Affairs Smart Growth Issues Tracker www.realtor.org
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Homeowner Utility Rebates According to the Partnerships for Advancing Technology in Housing (PATH), some popular programs and incentives that local utility companies may offer include5:
• Electricity and Gas >> Rebates on energy efficient products and appliances >> Discounted home energy audits >> Incentives for home weatherization >> Demand-side generation/management >> Rebates on renewable energy systems and products >> Time-of-use pricing >> Net metering
• Water >> Rebates on products and appliances >> Free or discounted surveys of irrigation system to determine inefficiencies
• Heating Oil >> Locking in an early rate with the supplier may result in savings if oil prices are expected to increase during the heating season
81. 5 Source: Partnership for Advancing Technology in Housing, www.pathnet.org. 4. Valuation and Incentives for Green Homes
Notes:
82. 5 Green living 5. Green Living
5. Green Living
In This Chapter • Green housekeeping • Eco-friendly landscaping, lawn and garden care • Energy efficient appliances • Disposal Issues • Indoor air quality
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Green Housekeeping Green housekeeping methods and cleaning products are components of maintaining a green lifestyle. As mentioned above, some cleaning products contribute to toxins in the home, therefore consumers are seeking safer and more environmentally friendly options.
However, no standards exist for labeling a cleaning product as green. Additionally, there are no requirements for disclosing all product ingredients. And unlike food products, the order of ingredients listed doesn’t necessarily represent relative amounts6. Naturally, this can lead to confusion and skepticism about the value of such products. The general concept with green cleaning products is that they should minimize environmental impact. But what does that mean? As a real estate professional, you can inform clients and customers about green housekeeping methods and options.
Marketing Caution As with any green marketing claim, it is wise to be wary of greenwashing, or the practice of making green claims without a verifiable positive effect to the environment. Avoid cleaning products with vague, generic descriptions that leave room for interpretation. For example:
• “Natural” >> May still include synthetic or toxic substances >> Some naturally occurring substances are highly toxic >> May include petroleum-based products, which impacts natural resource conservation
• “Safe” >> Quantity and usage are factors in safety >> Is it safe for the environment? for human health?
• “Biodegradable” >> Is it the product or the packaging that will break down in nature? >> How long does it take to decompose?
• “Eco-friendly” >> Does this mean it is made from plants? Recyclable? Has less packaging?
85. 6 Consumer Reports Cleaning products: Green buying guide (2007), http://www.greenerchoices.org 5. Green Living
Green Products Despite the lack of green cleaning product regulations or standards, some organizations are taking matters into their own hands. In addition to cleaning products, the following organizations certify a variety of other products and services.
Green Seal www.greenseal.org
Promotes manufacture, purchase, and use of environmentally responsible products and services. Green Seal® label says a product or service has been tested according to science-based procedures, works as well or better than others in its class, and that it has been evaluated without bias or conflict of interest
EPA—Design for the Environment www.epa.gov/dfe
This program works in partnership with range of stakeholders to reduce risk to people and the environment by preventing pollution. It offers the Safer Detergents Stewardship Initiative (SDSI) to recognize those who commit to use of safer surfactants (break down quickly and help protect aquatic life)
There are, however, a wide variety of ingredients to avoid in daily housekeeping. See Figure 5.1.
86. 87.
Figure 5.1: Ingredients to Avoid1
Nonylphenol ethoxylates (NPEs) Can break down into toxic substances. Can act as hormone disrupter Found in detergents, stain removers, citrus cleaners, disinfectants
Antibacterials Can cause skin and eye irritation. Note that controversy exists on the possible Found in household cleaners contribution to the emergence of antibiotic-resistant bacteria
Ammonia Poisonous when swallowed. Irritating to respiratory passages when inhaled. Found in floor, bathroom, tile, and glass cleaners Never mix with chlorine bleach—produces poisonous gas
Butyl cellosolve (butyl glycol, ethylene glycol, Poisonous when swallowed. Lung tissue irritant monobutyl) Found in glass cleaners and all-purpose cleaners
Chlorine bleach (sodium hypochlorite) irritating to lungs and eyes. Never mix with ammonia—produces poisonous gas Sold by itself and found in variety of household cleaners
d-limonene Can irritate the skin Found in air fresheners Diethanolamine (DEA) and triethanolamine (TEA) Can produce carcinogenic compounds Found in sudsing products, including detergents and cleaners
Disinfectants Regulated by EPA as pesticides Can cause problems in waterways by killing Catchall term for a variety of active ingredients helpful bacteria found in household cleaners
Fragrances May cause watery eyes and respiratory tract irritation Found in a variety of cleaners and air fresheners
Hydrochloric and sulfuric acid Can severely burn skin and irritate eyes and respiratory tract Found in toilet bowl cleaners
Naptha Can cause headaches, nausea, and central nervous system symptoms with Found in furniture, floor polish, and glass cleaners overexposure
Petroleum-based ingredients Many ingredients are derived from petroleum, such as naptha and formaldehyde. Found in many cleaning products as surfactants
Phosphates Can reach waterways and contribute to overgrowth of algae and aquatic weeds, Found in dishwashing and laundry detergents which can kill fish and aquatic life
Sodium hydroxide (lye) Corrosive and extremely irritating to eyes, nose, and throat and can burn on Found in drain, metal, and oven cleaners contact
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Homemade Cleaners Some clients and customers may be interested in making less-toxic homemade cleaners. If so, the Consumer Reports Cleaning Products: Green Buying Guide (2007) offers some suggestions outlined in the following exercise7: There are many homemade cleaning product recipes available online. In addition to the Consumer Reports Web site (www. greenerchoices.org), the National Geographic Green Guide (www. thegreenguide.com) offers suggestions.
Exercise Green Housekeeping
The exercise for this section focuses on identifying opportunities to use green housekeeping methods and homemade ingredients. Draw a line to match each cleaning situation with the best homemade ingredient to address the situation.
Removing soap residue Borax from shower stalls Hydrogen Cleaning dirty peroxide kitchen floor Cream of tartar Deodorizing toilet (potassium bitartrate) bowl Baking soda Removing stains (bicarbonate of soda) from bathtub Castile soap Cleaning countertops White vinegar Freshening laundry
89. 7 Consumer Reports Cleaning Products: Green Buying Guide (2007), www.greenerchoices.org 5. Green Living
Landscaping, Lawn, and Garden Care Eco-friendly lawn, landscaping, and garden care all contribute to a home’s sustainable outdoor environment. In addition to the more technical system considerations, there are many practical green landscaping and gardening methods. The EPA Web site is a good source of information on lawn care and gardening methods.
Composting Waste Composting is the process of converting small quantities of organic material by natural processes into decomposed matter. Composting is eco- friendly because it reduces waste sent to landfills and provides a source of mulch which improves the health of the soil where applied.
Compost materials include the following:
• Brown ingredients to provide carbon, such as dead leaves, branches, and twigs
• Green ingredients to provide nitrogen, such as grass clippings, vegetable and fruit waste, and coffee grounds
• Water to provide moisture and help break down organic matter
The EPA provides a list of ingredients that can be used for composting (e.g. eggshells, tea bags, and nut shells), as well as a list of ingredients to avoid (e.g. dairy products, pet wastes, and yard trimmings treated with chemical pesticides). Go to www.epa.gov for a complete listing. Composting can be completed both outdoors and indoors using a variety of techniques. In most climates, the process takes about 3–6 months. Once decomposed, compost can be applied as mulch to enrich the soil in garden beds, under shrubs, on the lawn, or in potting soil. Figure 5.2 shows photographs of various composting bins and the compost process.
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Figure 5.2: Composting
Source: U.S. Environmental Protection Agency, www.epa.gov
Mulch Mulching is the process of layering organic materials such as leaves, aged wood chips, compost, or grass clippings around landscaping beds and plants. Mulch should be spread in the spring or fall. It should be kept to 3 inches or less in depth and about 1 inch from plant stems or trunks to prevent rot. Mulching: • Stabilizes soil temperature and prevents erosion • Feeds soil and improves root growth • Prevents weeds • Conserves water (retains water and reduces evaporation)
Mulches can be inorganic as well such as stones, brick, and recycled rubber. While these mulches don’t have the benefits of soil improvement, they can be a great way to leverage recycled materials. Consider recycled tires or rubber mulch for backyard play areas.
Limiting Fertilization While most trees and shrubs get all the nutrients they need from the soil, there are times when plants, vegetable gardens, and lawns need additional nutrients from a fertilizer. When needed, it is important to look for products that contain “natural-organic” or “slow-release” ingredients.
91. 4. Valuation and Incentives for Green Homes
The choice of slow- or fast-release fertilizer depends on the type of soil According to the University of Wisconsin-Extension office, fast-release fertilizers are best on heavy (clay) or compacted soils; this is because the longer a fertilizer granule remains undissolved, the greater the chance of it being washed into waterways. Slow-release nitrogen fertilizers are best for sandy or loose soils because they provide soluble nitrogen over a period of time so there is not a large concentration available for leaching into groundwater or runoff8.
Many fertilizer materials, including leaves and grass clippings, contain nitrogen and phosphorus. When these nutrients wash into storm sewers and flow directly into lakes and streams they: • Promote unsightly algae blooms and aquatic weed growth • Lower dissolved oxygen levels in the water • May release ammonia—which is toxic to fish
Storm Water Runoff In a natural hydrological process water from rainfall and snowmelt filters through the ground to nourish plant life and replenish aquifers. However, too many impervious surfaces, such as asphalt driveways, paved parking lots, sidewalks, and roads, inhibit this natural process. Instead of percolating into the ground, storm water washes directly into storm sewers or waterways and carries with it pollutants such as road salt, oil, and nitrogen from fertilizers.
Fortunately there are pervious, or permeable, surface pavements available that allow slow seepage into the ground. Qualified experts should be consulted for planning and implementation, as local conditions and codes need to be considered. ToolBase Services identifies the following options9:
• Porous Asphalt >> Appropriate for pedestrian-only areas and very low-volume, low- speed areas such as overflow parking areas, residential driveways, alleys, and parking stalls
• Porous Concrete >> Pebbled, open surface that is rollercompacted
• Plastic Grid Systems >> High strength plastic grids (often made from recycled materials) are often placed in roadway areas. >> Some designed to be filled with gravel on top of an engineered
92. 8 University of Wisconsin-Extension in cooperation with the Wisconsin Department of Natural Resources, www.epa.gov/owow/nps/toolbox/other/wiexfertilizer.pdf 9 ToolBase Services, www.toolbase.org/Technology-Inventory/Sitework/permeable-pavement NAR’s Green Designation Residential Elective Course
aggregate material, while others are filled with a sand/soil mixture on top of an aggregate/topsoil mix that allows grass to be planted on the surface
• Block Pavers >> Porous surface with the aesthetic appeal of brick, stone, or other interlocking paving materials
Monitoring Water The EPA reports that about 30 percent of the water used in urban areas in eastern states goes to irrigate lawns and plants. In western states, this figure is 60 percent. Freshwater is generally thought to be a limited resource as concerns continue to increase about supply and demand due to population growth and current usage trends. Freshwater availability is also dependent on factors such as climate, precipitation patterns, and treatment options. As such, water conservation and usage strategies are important. Some practical techniques follow:
• Use compost and mulch to hold water and reduce evaporation
• Allow soil to partially dry out between waterings
• Use soaker hoses or drip irrigation systems instead of sprinklers
• Use outdoor water timer to ensure correct amount and frequency
• Use rain shutoff device
• Water early in the morning to avoid evaporation
• Consider rain gardens or landscaped areas designed to soak up rainwater from the roof, driveway, and/or lawn >> Collects rainwater runoff >> Filters water to help remove chemicals and prevent pollution >> Reduces soil erosion
• Consider rain barrels to collect rainwater and use for irrigation >> Should have hose connection, overflow spout, and lid to keep out bugs >> Check municipality regulations
• Direct downspouts into lawns, rain gardens, or rain barrels
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Managing Lawn Care A lawn is a central landscaping element for many residences. Concerns about lawns from a green perspective include:
• Provides little value to wildlife
• Limits rainwater absorption due to heavily compacted soil
• Contributes to flooding and runoff of excess fertilizer and pesticides
• Requires frequent maintenance (grows fast and needs mowing)
• Mowing uses nonrenewable resources and contributes to air and noise pollution
Lawn care methods that can help minimize the environmental impact:
• Reduce lawn size
• Create or expand landscaping beds with native plants that integrate with the ecosystem and require less irrigation and pest control
• Use a mulching mower so grass clippings can remain on the lawn and provide nutrients as they decompose
• Use electric equipment to reduce use of fossil fuels
• Use a non-powered reel mower where possible
• Keep mowers in efficient operating condition
• Raise cutting height to 3–3.5 inches during the hot summer months >> Keeps grass roots shaded and cooler >> Reduces weed growth, browning, and need for watering
Controlling Pests Pest problems are usually an indication that a lawn or garden is not getting what it needs to stay healthy. Before turning to pesticides, try these techniques first:
• Ensure healthy soil with compost and mulch
• Select pest-resistant plants
• Keep grass mowed to height of 2–3 inches (depending on climate) to allow more leafy surface and deeper roots to cut out weeds
• Remove dead plants and pull weeds
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• Use physical controls like traps, barriers, fabric row covers or plants that repel pests
• Attract or introduce natural enemies and naturally occurring bacteria
• Use horticultural oils and insecticide soaps
Pesticides should only be used as a last resort. If needed, use organic pesticides and don’t apply them when rain is expected.
Skill Builder
tip 5 Working with Landscaping Vendors
When seeking green landscaping services for regular maintenance or comprehensive landscaping redesign, the following questions may be helpful when interviewing vendors:
• What type of mowing equipment is used?
• What type of mulch do you use? What materials are included?
• What do you do with grass clippings and other yard waste?
• Do you use pesticides? >> Are they organic? >> Are there other strategies you employ for pest control?
• Do you use fertilizer? >> What type? >> How often?
• What plants are native to this area?
• What plants are considered invasive in this area?
• Do you have a list of plants to avoid?
• How do you incorporate natural design principles?
• Are there opportunities to create wildlife habitats?
• Are there strategies in your design that help conserve resources and minimize runoff?
• What storm water management techniques can work with my situation?
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Energy Efficient Appliances According to the American Council for an Energy-Efficient Economy (ACEEE), appliances account for a large percentage of total energy use in the average U.S. home (Figure 5.3).
Figure 5.3: Total Energy Use of U.S. Home
Source: Reprinted with permission of Annual Energy Outlook, 2007,American Council for an Energy Efficient Economy (ACEEE), www.aceee.org .
As you can see, many categories relate directly to the use of appliances such as dishwashers, refrigerators, and air conditioners. Household appliances require a tremendous amount of energy throughout their life cycle. Therefore, selecting energy efficient appliances can significantly reduce costs and minimize environmental effects. Real estate professionals have an opportunity to assist clients and customers in recognizing features of energy efficient appliances.
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EnergyGuide Labels The Federal Trade Commission (FTC) requires a bright yellow EnergyGuide label to be placed on many appliances. EnergyGuide labels provide an estimate of how much actual energy the model uses and the highest and lowest operating cost for competing models. This helps consumers to identify more energy efficient models that cost less to run and result in lower utility bills. The illustration provides a sample EnergyGuide label with instructions.
Appliances including clothes washers to refrigerators to central air conditioners to heat pumps have EnergyGuide labels.
Figure 5.4: EnergyGuide Label
Source: Federal Trade Commission, EnergyGuidance: Appliance Shopping With the EnergyGuide Label, www.ftc.gov.
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ENERGY STAR The ENERGY STAR program is a joint effort by the U.S. Environmental Protection Agency and the U.S. Department of Energy that identifies high efficiency appliances. To earn the ENERGY STAR rating, a product must exceed the federal minimum efficiency standards for appliances by a specific percentage or a specified energy-consumption level. The ENERGY STAR Web site, www.energystar.gov, provides qualified product lists and other tips to improve energy efficiency.
Figure 5.5 provides a list of products that can be ENERGY STAR-qualified. Note that new products may become available in the future, so be sure to check the Web site for the most current information.
Figure 5.5: ENERGY STAR Products
Appliances Clothes Washers, Dehumidifiers, Dishwashers, Refrigerators & Freezers, Room AC
Heating and Cooling Air Conditioning (Central and Room), Boilers, Dehumidifiers, Fans (Ceiling and Ventilating), Furnaces, Heat Pumps (Air-Source and Geothermal), Programmable Thermostats
Home Electronics Battery Charging Systems, Cordless Phones, Combination Units, Digital-to-Analog Converter Boxes, DVD Products, External Power Adapters, Home Audio, Televisions, VCRs
Lighting CFLs, Light Fixtures, Advanced Lighting Packages, Ceiling Fans, Exit Signs, Traffic Signals, Decorative Light Strings
Source: U.S. Environmental Protection Agency and the U.S Department of Energy’s ENERGY STAR program, www.energystar.gov.
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Although similar in title, EnergyGuide and ENERGY STAR focus on different aspects of appliances and provide different information. EnergyGuide labeling estimates energy consumption and operating cost range in comparison to similar appliances. ENERGY STAR labeling means that an appliance meets minimum energy efficiency standards.
Specific Considerations In the process of buying or selling a home, it is often necessary to purchase new appliances. As a real estate professional, your task is to educate your clients and customers on the most energy efficient appliances possible. In addition to using the EnergyGuide labels and checking for the ENERGY STAR rating, consider the following provided by the U.S. Department of Energy:
Figure 5.6: Energy Efficient Appliance Considerations
Appliance Purchasing Considerations and Recommendations
Refrigerators Select appropriate size for household’s and Freezers needs Choose top-freezer models instead of side- by-side Select only needed features (automatic ice- makers and through-the-door dispensers increase energy use) Select chest freezers instead of upright freezers Clean condenser coils every 6 to 12 months Ensure door seals are airtight Place away from potential heat source
99. 4. Valuation and Incentives for Green Homes
Ovens and Select gas if possible Ranges Select self-cleaning models (better insulated) Select electric ranges containing ceramic, halogen, or induction elements (more efficient than electric coils) Consider range hoods with low-sone (quiet) rating Select model that exhausts fumes and moisture outside Only operate self-cleaning feature when necessary (no more than once a month and directly after using oven) Keep gas range pilotless igniters clean
Dishwashers Choose model with a booster heater Select a model with a variety of cycles and air-dry or overnight-dry option Select metered fill instead of timed fill (factors pressure)
Clothes Select front-loading machines Washers Use cold water settings Periodically check hose fittings and screen, water-intake lines, and drain lines for metal or sediment deposits
Clothes Select gas dryer if possible Dryers Look for moisture sensor in drum instead of temperature sensor near exhaust Clean lint filter after every load Dry a full load of clothes Dry two or more loads consecutively to take advantage of excess heat Consider air or sun drying
Source: U.S. Department of Energy, Office of Building Technology, Sate and Community Programs Energy Efficiency and Renewable Energy, Technology Fact Sheet: Energy-Efficient Appliances, www. eere.energy.gov.
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Exercise Selecting Appliances
The exercise for this section focuses on comparing various appliance features and EnergyGuide labels. Work in groups to review the scenario and answer the questions that follow.
Scenario: Your client needs to purchase a new refrigerator for his active family of five. The family enjoys outdoor activities and entertaining friends and family. The offer on a 4-bedroom home was just accepted and they will be closing in one month. The family has narrowed down their decision to three refrigerators, all ENERGY STAR-qualified.
What should be considered when comparing the EnergyGuide labels?
What additional features besides may contribute to the decision?
What option do you recommend?
101. 5. Green Living
Option 1: White Kenmore 25.4 cu. ft. side-by-side ($1,349.99)
• Microban® Antimicrobial Protection helps reduce stains and odors in the crisper drawer
• Low-profile hinges create seamless look
• PUR® Ultimate II Water Filtration
• Electronic ice and water dispenser with green LED display
• Humidity-controlled crisper
• Temperature-controlled, convertible meat/vegetable drawer
• Slide-out, spill-proof glass shelves
• Adjustable gallon door bins
• Metal Handles
Option 2: White Kenmore 21.5 cu. ft. non-dispensing side-by-side ($1,349.99)
• Humidity-controlled crisper
• Snack pan
• Clear gallon door bins
• Spill-proof glass shelves
• Backlit slide control
• Enhanced lighting
• Optional ice maker
102. NAR’s Green Designation Residential Elective Course
Option 3: Stainless Steel Kenmore 21.7 cu. ft. side-by-side ($1,499.99)
• EXCLUSIVE PUR® Ultimate II with 2-stage ice and water filtration
• Ice and water dispenser with light and lockout features
• Interior water filter indicator
• Humidity-controlled crisper
• Convertible, temperature-controlled meat/vegetable drawer
• Adjustable, spill-proof glass shelves
• Clear, adjustable gallon door bins
• Bladed temperature control knobs
Disposal Issues Recycling is a major component of a green living. However, many products used within the home contain harmful ingredients and cannot be recycled traditionally. They must be disposed of properly to prevent potential health and pollution issues. Many municipalities have programs in place such as permanent collection facilities, special collection days, or local business collection sites to deal with hazardous products requiring special disposal. Knowledge of an area’s approach to recycling and disposal issues is a valuable service that you can provide to your customers and clients.
Appliances with cooling equipment contain refrigerants and other toxic materials that can be released in landfills and contribute to greenhouse gases. Electronics involve a variety of both recyclable and toxic materials requiring professionals to handle the appropriate recycling and disposal methods prescribed by environmental laws. If donating old electronics to schools, low-income families, and nonprofits is not reasonable, there are many electronics manufacturers with collection and recycling programs in place. Products that require special attention are:
103. 5. Green Living
• Refrigerators • Freezers • Dehumidifiers • Room air conditioners • Televisions • Radios • Cell phones • Computers and peripherals • Fax machines • CLF bulbs • Batteries
Household Hazardous Waste (HHW) Improper disposal of hazardous waste can contribute to environmental pollution and health hazards. Improper disposal methods are actions like pouring leftover household products that contain corrosive, toxic. Ignitable, or reactive ingredients down sink drains, into storm sewers, or on the ground.
Figure 5.7: Household Hazardous Waste (HHW)
Cleaning Products Indoor Pesticides • Oven cleaners • Ant sprays and baits • Drain cleaners • Cockroach sprays and baits • Wood and metal cleaners and polishes • Flea repellents and shampoos • Toilet cleaners • Bug sprays • Tub, tile, shower cleaners • Houseplant insecticides • Bleach (laundry) • Moth repellents • Pool chemicals • Mouse and rat poisons and baits
104. NAR’s Green Designation Residential Elective Course
Automotive Products Workshop/Painting • Motor oil Supplies • Fuel additives • Adhesives and glues • Carburetor and fuel • Furniture strippers injection cleaners • Oil or enamel based paint • Air conditioning • Stains and finishes refrigerants • Paint thinners and • Starter fluids turpentine • Automotive batteries • Paint strippers and • Transmission and brake removers fluid • Photographic chemicals • Antifreeze • Fixatives and other solvents
Lawn and Garden Miscellaneous Products • Batteries • Herbicides • Mercury thermostats or • Insecticides thermometers • Fungicides/wood • Fluorescent light bulbs preservatives • Driveway sealer
Source: U.S. Environmental Protection Agency, www.epa.gov.
Pet Waste Pet waste is a concern because pathogens such as E. coli and Salmonella and parasites causing Toxoplasmosis can leech into water sources and threaten human health. As long as droppings are not mixed with other materials, the EPA recommends that pet waste be flushed down the toilet. Depending on local law, it may be acceptable to seal pet waste in plastic bags and dispose of it in the garbage; there are biodegradable pet waste bags available for this purpose, and for city dwellers who have to pick up after their pets. Visit the following Web site for an example: www. biobagusa.com. Pet waste is not recommended for composting.
105. 5. Green Living
Skill Builder
tip 6 Local Recycling and Disposal Information
A great resource to discover information about local recycling and disposal options is Earth 911, www.earth911.org.
Notes:
106.