DOE Zero Energy Ready Home

Tech Training Webinar Series

Sales and Value Recognition

for Zero Energy Ready Homes

1 | INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

The Home of the Future….Today

2 | INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

 DOE Zero Energy Ready Home
Resources

Website
• www.buildings.energy.gov/zero/
• Events:
• Upcoming in-person ZERH Trainings
• Technical Training webinars
• Conference Presentations
• Partner Locator
• Program Specifications
• Webinar Recordings

Building America Solution Center

• http://basc.pnnl.gov/

3 | INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

 Thank You

For More Information:

www.buildings.energy.gov/zero

Email:
zero@newportpartnersllc.com

4 | INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

 DOE Zero Energy Ready Home
Value for High Performance Homes
Campaign
December, 2014

©2014 Elevate Energy

 Creating a Virtuous Cycle…

 Homeowners/Builders are rewarded for their

investment in high performance
 Additional homeowners are motivated to
invest in high performance as well

©2014 Elevate Energy 2

 REQUIRED:
Collaboration among Non-Traditional Allies

Source: Green MLS

Toolkit -
www.GreenTheMLS.org
©2014 Elevate Energy 3
 NAR Environment / Energy Efficiency Issue Summary

Supports improving energy efficiency through

voluntary incentives, commercially reasonable
approaches and education in lieu of individual building
mandates. The policy opposes applying existing
laws/regulations that are not designed for global
climate change; provisions that impose undue
economic burdens on property owners or managers; or
triggering such requirements at the time when real
property is sold.

©2014 Elevate Energy 4

 NAR Environment / Energy Efficiency Issue Summary

Supports improving energy efficiency through

voluntary incentives, commercially reasonable
approaches and education in lieu of individual building
mandates. The policy opposes applying existing
laws/regulations that are not designed for global
climate change; provisions that impose undue
economic burdens on property owners or managers; or
triggering such requirements at the time when real
property is sold.

©2014 Elevate Energy 5

 A Blueprint for Collaboration

1. Document Upgrades

2. Disclose Inventories

3. Continuing Education

4. Green MLS Usage

5. Appraiser Designed Valuation

Studies

6. IT Solutions: HPXML

7. Work with Lending Institutions

©2014 Elevate Energy 6

 If a tree falls in a forest and no one is around
to hear it, does it make a sound?

©2014 Elevate Energy Image © Copyright James Allan, Creative Commons. 7

 Step 1. Document Upgrades

©2014 Elevate Energy 8

 Step 2. Disclose Inventories
“Inventory Scientists”

©2014 Elevate Energy 9

 Poll

Do you work in markets where

Realtors and appraisers have
access to Green MLS fields?
• Yes - 44%
• No – 11%
• Unsure – 45%

©2014 Elevate Energy 10

 Step 4. Green MLS Usage

©2014 Elevate Energy 11

 Document Upgrades
RESO Data Dictionary/Green MLS Implementation Guide

Third-Party Verified Fields

GreenBuildingVerification Zero Energy Ready Home
GreenVerificationBody DOE
Green[Type]YearVerified 2014
Green[Type]VerificationRating
Green[Type]VerificationMetric
Green[Type]VerificationURL

Specific/Technical Fields (Partial List)

Heating
Cooling
InteriorFeatures
Roof
ConstructionMaterials
FoundationDetails

©2014 Elevate Energy 12

 Auto-pop
Tax works, why not “green”?

Agents

Tax Data

MLS Operators

Brokerages
Verified
Green Data

2.4 Million Records

©2014 Elevate Energy Aggregators 13

 Energy Cost “Auto-Pop” in Chicago

©2014 Elevate Energy

Source: MRED LLC
 Thank You

Laura Stukel
Laura.Stukel@elevateenergy.org
773-251-1631
ElevateEnergy.org

www.greenthemls.org
• Green MLS Toolkit
• Green MLS Implementation Guide
www.elevateenergy.org/value-high-
performance-homes
• Visible Value Blueprint
• Campaign Newsletter sign-up

©2014 Elevate Energy

 Sales and Value
Recognition of Zero
Energy Ready Homes
Presented by:
1 Sandra K. Adomatis, SRA, LEED Green Associate
E-mail: Adomatis@Hotmail.com

Copyright 2014 Sandra K. Adomatis, SRA, LEED Green Associate

2 Sandra K. Adomatis, SRA, LEED
Green Associate

 Author
 Real Estate Appraiser – SRA Designation with
Appraisal Institute
 REALTOR
 Appraisal Institute Instructor
 LEED Green Associate – U.S. Green Building
Council
 National Speaker on High Performance Houses

Copyright 2014 Sandra K. Adomatis, SRA, LEED Green Associate

3 Objectives

Compare House Labels

Identify the Appraiser’s
Resources

Copyright 2014 Sandra K. Adomatis, SRA, LEED Green Associate

4 Housing Labels

Features Green House High Code- Net

Performance Built Zero
House Energy
Energy Efficient X X Maybe X

Resource efficient X X No Maybe

Environmentally
X Maybe No Maybe
responsible
Six Elements
Site
Water Efficiency
Energy Efficiency Not all
X Not all six Maybe
Indoor Air Quality six
Materials
Operations &
Maintenance

Copyright 2014 Sandra K. Adomatis, SRA, LEED Green Associate

5 AI Residential Green & E.E.
Addendum
• Appraisers
• Builders
• Real Estate
Agents
• Energy Raters
• Sellers

The direct link for the fillable PDF “AI Residential Green and Energy Efficient Addendum” is
Copyright 2014 Sandra K. Adomatis, SRA, http://www.appraisalinstitute.org/assets/1/7/Interactive820.04-
LEED Green Associate ResidentialGreenandEnergyEffecientAddendum.pdf
6 RESNET HERS Index Registry
The registry can be found at
http://www1.resnet.us/registry/home.aspx

Copyright 2014 Sandra K. Adomatis, SRA, LEED Green Associate

7 Appraiser’s Resources

 Cost analysis
 Discounted cash flow analysis
(DCF) – PV Value Tool®
 Paired sales data
 New Studies – Appraiser Driven

Copyright 2014 Sandra K. Adomatis, SRA, LEED Green Associate

 https://pvvalue.com/
Solar Photovoltaic Value using PV Value® Tool; a Discounted Cash Flow
 Appraiser Testimony
9

 “We officially performed our first solar appraisal on

behalf of a lender, one of the panel appraisers
that was in Sandy’s solar class had the pleasure,
he did a great job and there was value given with
correct methodology for the owned solar PV
system using PV Value Tool®.

 The lender was very excited and would like to

know/learn more, how can we promote this tool
further?”
Result of “Residential and Commercial Valuation of
Solar” course in Tempe, AZ. - November 2014

Copyright 2014 Sandra K. Adomatis, SRA, LEED Green Associate

 Net Zero Energy
Development Success Story
10

 Palm Harbor, FL – Hawk’s Landing

 Marc Rutenberg Homes
 40% of sales are Net Zero Energy
 60% remaining are minimum FL Green Building
Coalition Certification
 Buyer profile –
 Downsizing-empty nesters 55-72 yrs old
 Professional – very knowledgeable-research oriented
 3 NZE homes have been occupied 6 months to 2 years
and are showing -0- energy – Tracking is important

Copyright 2014 Sandra K. Adomatis, SRA, LEED Green Associate

 Net Zero Energy Development
11 Success Story
 Financing success attributed to the following:

 Appraiser that had taken and passed the AI

Green Courses – on AI Green Registry
 Completed the AI Green & E.E. Addendum
on all houses
 Provided appraiser and lender with all
documents
 Number of sales provides a trending for this
new product in a given area
 Lender that hired competent appraiser
Copyright 2014 Sandra K. Adomatis, SRA, LEED Green Associate
 Studies – Appraiser Driven
12

 Eight State Study – LBNL – Release in 2015- Study period

– 2012-2013 dates of sale
 All states show a sales price premium
 States with highest electric kWh costs show
higher premiums

 Denver, CO. Study – Released May 2013- “The Impact

of Photovoltaic Systems on Market Value and
Marketability” by Lisa K. Desmarais, SRA

 22 out of 30 studies reveal a sales price premium

of $1.40 to $2.60 per Watt

Copyright 2014 Sandra K. Adomatis, SRA, LEED Green Associate

 Paired Sales Analysis
13 Features Solar PV Sale - Similar Non Solar Adjustment
Address PV Sale -
Address
Date of Sale 4/3/2012 3/19/2012
Sale Price $836,000 $825,000
$/SF of Living Area $213.54 $213.34
SF of Living Area 3915 3867 0
Actual Age 2 4 0
Condition Good Good
Room Count –Total
Bedroom- 12/5/3.1 9/5/3.1 0
Bathroom
Garage -# Cars 3 3
Amenities/porche Patio/wtr
Casita/Patio/wtr
s/patio/ feature/bb 0
feature
q
Solar PV-Size-Age 2.99/2years-2mo None
Adjusted Sale
$836,000 $825,000
Price
Indicated
premium for $11,000/2990 watts or $3.67/watt
Solar PV
Gross Cost
$19,046/2990 watts or $6.37/watt
New/Watt
Copyright 2014 Sandra K. Adomatis, SRA, LEED Green Associate

Net Cost
$12,742/2990 watts or $4.26/watt
New/Watt
 Next Steps
14
 Clarification of secondary mortgage market
guidelines
 Education of real estate industry partners and
public – Better population of MLS Green Fields
 Documented numbers of houses
 Public Record
 Accessible database
 More appraiser driven studies
 Geothermal
 Energy Efficient Homes
 Green Homes
 Solar

Copyright 2014 Sandra K. Adomatis, SRA, LEED Green Associate

 Residential Green Valuation
15
Tools –

Target
Audience

 Appraisers
 Real estate
agents
 Builders
 Energy raters
 Lenders
 Homeowners

Copyright 2014 Sandra K. Adomatis, SRA, LEED Green Associate

 The End

Sandra K.
Adomatis, SRA, Follow my Blog:
LEED Green www.Adomatis.wordpres
Associate s.com

Adomatis@Hotmail.com Follow me on Twitter:

www.adomatisappraisalser https://twitter.com/sado
vice.com matis