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NAR's Sustainable Property Designation 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. 8. NAR’s Green Designation Residential Elective Course 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
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