A HERS® Index Score Can Help Sell Your Home!

We at Capital Home Builders have always built homes to a higher standard by using quality materials and labors. Our homes are not built like standard built homes in Thomasville and South Georgia. The approach to building a minimum code home is “how much can I really cut back on laborers, materials and building code. Capital Home Builders approach to building a quality high-performance homes is how can we build it better, stronger and more energy efficient, our RESNET number do not lie. 

If you’re selling your home and a potential buyer wants to know what its HERS Index Score is, can you tell them? Because chances are, this is a question that’s going to come up more and more often. That’s because the issue of home energy efficiency is on the rise and consumers are trying to cut back costs wherever they can – and that extends to buying a home.

Fact: the highest cost of homeownership outside of the home loan is energy.

For many years, consumers have been able to buy cars and appliances based on energy performance. While cars have MPG (miles-per-gallon) stickers and appliances have Energy Guide labels, for the longest time homebuyers had no way of knowing the potential energy costs of homes they were viewing. That meant sometimes choosing a home that ended up costing more than anticipated due to poor energy performance. The HERS Index Score changes that.

• The HERS Index was developed by RESNET and is the industry standard by which a home’s energy performance is measured.
• A HERS Index Score is the result of a comprehensive HERS rating, in which a certified RESNET HERS Rater assesses a home on its energy performance.

Fact: mortgage default risks are 32% lower on homes with low HERS Index Scores.

Why Should Homeowners Get a HERS Index Score?

A HERS Index Score tells you how your house compares to other similar homes for energy performance. The lower the score, the more energy efficient the home; the more energy efficient the home, the higher the potential resale value. The Earth Advantage Institute, a nonprofit based in Portland, Oregon, “found that newly constructed homes with third-party certifications for sustainability and energy efficiency sold for 8% more on average than non-certified homes in the six-county Portland metropolitan area. Existing houses with certifications sold for 30% more.” Their report, published in May 2009, confirms that energy efficient retrofits add value to homes, resulting in generally higher resale prices for sellers.

Fact: energy efficient homes save money, improve home comfort and enjoy higher resale values.

As a homeowner, you want to keep your energy costs under control and your home comfort levels high. The best way to achieve this is through energy efficient improvements. By making your home more energy efficient, not only do you save money and improve your home comfort, you also add value to your home. And that means a higher resale price when you sell, because homebuyers want energy efficient homes, and HERS Index scores tell them how energy efficient a home is.

Therefore, as a homeowner who is looking at their home as not just a place to live in but also as an investment, getting a HERS Index Score is the smart thing to do. After all, you know how energy efficient your car is – don’t you want to know about your home too?

http://www.resnet.us/library/index-score-can-help-sell-home/

EFFICIENT HOMES MAY BE MORE VALUABLE THAN OTHERS

We are the first and only builder building energy smart custom home builders. All of our homes are built above minimum code with high-end materials and quality laborers. We GUARANTEE that our homes are more energy efficient than any other new or existing home built in Thomasville, GA. 

You simply can't buy a  NEW HOME and get a better RATING then "GUARANTEED".

When insurance companies offer discounts for lower risk customers, you can bet it’s based on reliable evidence. Think lower car insurance rates for drivers with no speeding tickets, and discounted life insurance for non-smokers.

Genworth, the large private mortgage insurance firm spun-off from General Electric, now offers a discount for buyer of energy efficient houses.  (OK – Genworth implemented this policy in Canada — but reports suggest it’s coming to the US market….

Genworth is validating that the risk of loss to the mortgage lender is lower when the borrower is in a more energy efficient house.

Image via Blue Sky Building Systems

The policy makes a ton of sense.  Attributes of an energy efficient house — better air sealing, more insulation, high performance appliances — are attributes of a well-built house. These measures make a house more valuable. If the borrower gets into income trouble and can’t afford the mortgage payments, a more efficient house will likely hold its value better than a house built to lower standards.

And home value is a strong predictor of lender losses — if a borrower has home equity, default is rare because the house can be sold for more than the mortgage. For more on that, see this paper by economist John Campbell.

A more efficient house also means lower energy expenses, so the borrower might not get into income trouble in the first place. And, these lower expenses are one reason an efficient house is more valuable.

A funny thing about the mortgage market is that this kind of policy can be self-fulfilling. The fact that more energy efficient houses are more valuable is a basis for the Genworth policy to give a discount, but it’s also likely to be an outcome of the policy. That is, the discount on mortgage insurance should allow some borrowers to pay more for energy efficient houses and increase demand for those houses among homebuyers. This effect should remind lenders, investors, appraisers, and others how the current, conventional policy can be self-fulfilling in the opposite direction — loan policies that make it difficult for a borrower to borrow more to pay a premium for a more energy efficient house can inhibit the very evidence needed to support policy correction.

While most U.S. mortgage borrowers don’t get private mortgage insurance, the fact that Genworth has adopted this new policy should be a strong signal to lenders, investors, appraisers, and others to continually assess how the value of energy efficiency is reflected in the property value and the loan.

http://www.earthtechling.com/2013/12/efficient-homes-may-be-more-valuable-than-others/

“Green” Labeled Homes Worth More on the Real Estate Market, Study Says

Capital Home Builders are the first builders of green smart homes in South Georgia. It looks like the green building trend has not reached the South Georgia area. We think if Thomasville, Georgia can still live in the era of horse and carriage they would, but we are changing the way homes are being built in Thomasville and South Georgia by building better homes above minimum code. Green Homes are built above minimum code non-green homes are NOT.......

Researchers from the University of California, Berkeley and the University of California, Los Angeles today released a new study on the economic value of green home labels in the California residential marketplace. “The Value of Green Labels in the California Housing Market” is the first rigorous, large-scale independent economic analysis of the value of green home labels in California. The study found that a green home label adds an average 9 percent price premium for single-family homes in California. Based on the average California home price of $400,000, homes with a green label sell for an average of $34,800 more than comparable homes without a green label.

In addition, the study yields two key insights into the effect of green labels on property values. First, the price premium associated with a green label varies considerably from region to region in California, and is highest in the areas with hotter climates. This trend may indicate that residents in these areas value green labels more due to the increased cost of keeping a home cool. Second, the premium is also positively correlated to the environmental ideology of the area, as measured by the rate of registration of hybrid vehicles. The observed correlation suggests that some homeowners attribute value to intangible qualities associated with owning a green home.

Led by researchers Nils Kok, visiting professor at the University of California, Berkeley, and Matthew Kahn, professor at the Institute of the Environment, Department of Public Policy and Department of Economics at the University of California, Los Angeles, the study examined data on the 1.6 million single-family homes sold between 2007 and 2012 in California. Of these homes, approximately 4,300 were certified with green home labels from Energy Star, GreenPoint Rated, or LEED for Homes.

“In certain regions of the state, we observed a phenomenon we’ve termed the ‘Prius effect’ — a positive correlation between the value of green home labels and environmental ideology, as measured by the rate of hybrid registrations,” said Kok. “In communities with strong environmental values, residents may see green homes as a point of pride or status symbol.”

The estimated $34,800 price premium for green-labeled homes is significantly greater than the price increase associated with other typical home improvements made by homeowners prior to sale, such as home staging. A 2012 survey by HomeGain found that staged homes sold for an average of $2,144 more than non-staged homes, while an upgrade of the kitchen and bathroom was found to increase the sale price by $3,254.

“Environmental ideology was not as strong in some other areas, and yet we still saw a high value placed on homes with a green label,” said Kok. “It appears that a hotter local climate also provides a practical reason to value green homes. With both ideological and pragmatic reasons to go green, it’s no surprise that the popularity of these labels is rising.”

The benefits of green homes include:

• Lower operational costs than conventional homes due to greater energy and water efficiency, which can result in lower utility bills;
• High quality construction, since green label requirements for building materials and techniques often go beyond standard building codes;
• More comfortable and stable indoor temperatures;
• Healthier indoor air quality; and
• Other features that reduce environmental impact such as proximity to parks, shops and transit.

“Increasingly, homeowners who are planning to sell their home are looking for innovative ways to make their home more attractive to potential buyers,” said Robin Gaskins, a realtor who has worked for 10 years in Alameda County. “Particularly if a home already has a number of green or energy-saving features, it really does pay to go the extra mile and get a green label.”

Growing awareness about global warming and the extent of greenhouse gas emissions from the residential sector has increased attention to green building in recent years. Previous research has shown the value of green labels and certifications in the commercial real estate sector. “The Value of Green Labels in the California Housing Market” confirms that the same trend applies to single-family homes.

“The Value of Green Labels in the California Housing Market” has been submitted for presentation at the 2013 Annual Meeting of the American Economic Association and will be submitted to a scientific journal in fall 2012.

http://www.arounddublinblog.com/2012/07/green-label-homes-worth-more-real-estate-market/

How to Identify a High Energy Performance Home

Capital Home Builders is the only and first custom and energy smart home builder in South Georgia. Our homes come with more features then any other home built in Georgia and South Georgia. We are also the only builder offering Home Energy Rating System (HERS) Rated homes. We are the only builder with Residential Energy Guarantee. We will guarantee your electrical bill for Two Years and if you go over we will pay you back the difference. NO other builder in South Georgia will stand behind their homes like we do. We do not believe in building to minimum code and our homes are proof of that. You may pay 5% to 10% more for a High-Performance home, but with all of the energy savings you will make it back the first 2 years. 

So you’re looking to buy a new home…but not just any home. You want one that’s easy on the environment and uses less energy. A comfortable home that saves you money while reducing your carbon footprint.

In other words, what you want is a high energy performance home.

But how do you know when you’ve found one? I mean, how can you tell if the house you’re viewing is actually a high energy performance home? Is there a way to differentiate between a home that’s energy efficient from one that’s not?

Luckily there is and increasing numbers of builders are using it to market energy efficient homes. It’s called a HERS Index score and hopefully one day soon every house will have one.

Energy Performance and the HERS Index Score

So what is a HERS Index score anyway? The home energy rating system (HERS) was developed by RESNET to help homebuyers compare homes based on their energy performance. For example, when a certified RESNET Home Energy Rater does a home energy rating, they’ll give the home a HERS Index score based on its energy performance.

A standard new American construction home that adheres to current energy guidelines is awarded a default HERS Index score of 100, which serves as a benchmark against which all other homes are measured. A higher HERS Index score translates into a less energy efficient home, and vice-versa. A typical American resale home scores 130 on the HERS Index, making it 30% less energy efficient than a new construction home. On the other hand, if a house gets a HERS Index score of 50, it means that it’s 50% more energy efficient than a standard new construction home. And in Thomasville, GA. a typical new home has a score of 130.

Why the HERS Index Score is Important to Builders

Thanks to the HERS Index and HERS Index scores, for the first time homebuyers can actually get an true understanding about how energy efficient a home really is. This naturally changes the way people are viewing homes they’re interested in and builders have been quick to understand that. Consequently, many are now actively marketing their homes using HERS Index scores to advertise potential savings that homebuyers could enjoy when purchasing a high energy performance home.

In addition to this, utility companies too are jumping on the bandwagon by offering builders rebates on energy costs based on their homes’ HERS Index scores. In fact, LG&E and KU Energy, a utility company based in Louisville, Kentucky, recently had their Energy-Saving New Homes Program recognized as a RESNET Energy Smart Program. The program rewards enrolled builders with rebates based on the HERS Index scores of their houses. For example, single family dwellings with HERS Index scores of 85 are eligible for a rebate of $440, and it increases up to $1,200 for homes that score 50 or lower. LG&E and KU Energy are the first utility in the U.S. to earn this designation from RESNET.

What Does All This Mean to Homebuyers?

Thanks to increased efforts and awareness, it’s now getting easier for homebuyers to identify and buy high energy performance homes. As the popularity of HERS Index scores continues to grow, and with builders actively promoting energy efficient homes via their scores, the future is starting to look a little…well…greener than it once did!

Are green building attributes properly valued?

We been building green custom smart homes since 2005,  Before buying a home in Thomasville, GA. educate yourself on the home you are looking to purchase and the quality construction of that home and if it is built above minimum code and how much energy savings that Thomasville, GA. home can provide. Again, a true energy efficient home is tested by a third-party, now a Realtors can blow smoke up your keister and tell you that the electrical bill of a home is $100.00/month, than sometimes you have creative agents who use an electrical bill from spring when everyone has the A/C unit off and windows open and from homes where the owners are out on vacation and the A/C unit is not in use. I am sure there are many other creative ways an agent can show a low monthly bill, but the only true way is by having it tested by a third-party Rater.

Do you have a “green” home? Or want to buy or build a green home? You’re not alone. According to the 2012 Yahoo Real Estate Home Horizons Study, Americans say a green or energy-efficient home would be a hallmark of their dream home, taking precedence — for the first time ever — over common favorites like water views or living in a gated community.

If you are looking to refinance, buy or build a home which outperforms typical code-built homes in energy efficiency, you probably have contemplated the question, what is the value of green?

A common belief is that lenders and appraisers cannot put a monetary value on green building features in the loan approval process. Not true. There is growing willingness, on the part of lenders, appraisers and Realtors to reflect the advantage of green in your home value, due in part to increased support from the federal government and the Appraisal Institute, and a willingness amongst homebuyers to pay more for high-performing third-party- certified green homes.

An extensive study conducted by the University of California analyzed 1.6 million single-family home sales from 2007 to 2012, and found that third-party green-certified homes sold for 9 percent more on average than comparable non-green-certified homes.

Residential appraisers often turn to the multiple-listing service (MLS ) for comparable sales data to assist in valuing properties. Santa Fe’s MLS is one of 185 MLS databases nationwide that have green data fields; there are approximately 665 others that do not. Increasing use of these fields by Realtors will assist appraisal values for green homes.

Appraisers can also use the Appraisal Institute’s Residential Green and Energy Efficient Addendum, a nationally recognized document that categorically highlights the energy, water, solar and other green features of a home so as to be monetized in the valuation of the appraisal. There are other valuation techniques available to appraisers; however, a green appraisal requires more training, skill and time than a standard appraisal.

Any owner requesting a green appraisal has the right to require that your lender use an appraiser experienced in green property valuation. Santa Fe has several appraisers with green valuation experience. If you hope to maximize the value of the green features in your appraisal, you should also present your qualified appraiser with easy-to-understand, itemized cost data for the energy, water, solar and other green improvements you made versus a code minimum home.

With the help of a HERS rater, you can also itemize the cost savings of your energy upgrades versus code-minimum construction. It is the responsibility of the builder or homeowner to inform the appraiser of these added value features.

As we emerge from the housing lull and move into a new era of slow but steady growth, we have a golden (and green) opportunity to increase the value of the green home projects we are conducting in the City Different.

http://www.santafenewmexican.com/life/home/article_b3e7dc17-a4c8-57bb-88df-a6625ab3d849.html

Capital Home Builders is Building to a Higher Standard!

We are focused on high quality built homes not square footage!
Capital Home Builders Designated as a RESNET Energy Smart Homes Builder for Committing to Build Energy Efficient Homes and Marketing Their Homes HERS Index Score

Thomasville, Georgia based home builder Capital Home Builders has entered into an agreement with the Residential Energy Services Network (RESNET) to provide new home buyers an important measurement of long-term energy performance of each new home the company builds.  The intent of the agreement is to raise consumers’ knowledge of new home energy performance by using RESNET’s HERS Index.  Use of the HERS Index will differentiate homes built by Capital Home Builders from other homes for sale in the Thomas County housing

Capital Home Builders is custom energy efficient home builder. The company was the first homebuilder to acquire the ENERGY STAR designation in South Georgia.  For more information on the company visit their web site at http://www.capitalhomebuilders.com/

The RESNET HERS Index is the industry standard by which a home’s energy efficiency is measured. The HERS or Home Energy Rating System was developed by RESNET and is the nationally recognized system for inspecting and calculating a home’s energy performance. Certified RESNET Home Energy Raters conduct inspections to verify a home’s energy performance and determine what improvements can be made to increase it. For more information go to http://www.resnet.us/home-energy-ratings

Izzy of Capital Home Builders, said RESNET’s HERS provides a quantitative measure of energy efficiency and permits comparisons between homes.   “It is expected that Capital Home Builders’ agreement with RESNET will serve as a model to other local and regional builders that would have positive outcomes for consumers and the new home industry,”

Steve Baden, executive director of RESNET lauded Capital Home Builders’ leadership for improving the energy performance of new homes.  “Today’s new homes are much more efficient in comparison to homes built just a decade ago.  These homes are more affordable to maintain, comfortable and have a higher value.  Thanks to leaders like Capital Home Builders, builders are increasing the energy performance of the homes they build.  This is good for consumers, the environment, the local economy and our national security.  It is great to have such a quality builder like Capital Home Builders educating homebuyers on the RESNET HERS Index.”

In making the commitment Capital Home Builders has been designated by RESNET as an RESNET Energy Smart Builder. RESNET Energy Smart Builders are leading the transformation of the housing towards high energy performance homes. These leading builders are committed to having all of their homes energy rated following RESNET’s stringent standards and marketing their homes HERS Index Score.

Energy-efficient homes seem to sell faster, fetch higher prices

Capital Home Builders Energy-efficient homes provide more efficient, healthful, and comfortable living environments by treating the structure as a complete system, where every component must work in harmony. Energy-efficient homes also use fresh-air ventilation and pressure-management techniques that maintain better air quality and comfort. AND, a properly balanced heating and cooling system means maximum energy efficiency. We are the only builder in Thomasville and South Georgia to have the best built homes and the only builder to have all of our homes "HERS Rated"
Some research projects in California, Oregon and Washington offer hints that energy efficiency and sustainability certifications for homes may result in easier sales and higher prices.

Home energy efficiency and sustainability have been major policy priorities for the Obama administration, but lurking in the background are two consistent questions: Beyond the documentable savings on utility bills, do such steps add to the resale value of a home? And do they make it easier or faster to sell your property?

Housing groups and housing officials say that definitive statistical data covering multiple regions of the country are scarce. But some localized research projects in Oregon, Washington and California offer promising hints.

In a study covering existing and new houses sold from May 2010 through April of this year, the Earth Advantage Institute, a nonprofit group based in Portland, Ore., found that newly constructed homes with third-party certifications for sustainability and energy efficiency sold for 9% more on average than noncertified homes in the six-county Portland metropolitan area. Existing houses with certifications sold for 30% more.

The raw sales data in the study were provided by the Portland Regional Multiple Listing Service. "Certified" houses were defined as those carrying Energy Star or LEED for Homes designations or Earth Advantage home certifications. (LEED stands for Leadership in Energy and Environmental Design.) The latest study was the fourth in an annual series conducted by Earth Advantage, each of which has shown clear price premiums for certified houses.

But officials caution that using average sales prices pulled from MLS data without trying to measure "comparable" homes against one another directly may not be conclusive. For instance, newly constructed certified houses may be more expensive to start, and existing certified homes may be larger and more likely to be in higher-cost neighborhoods where homeowner adoption rates for energy-efficiency measures are higher.

Nonetheless, said Dakota Gale, Earth Advantage's manager of sustainable finance, looking back at four years of studies, "we can still see a consistent trend that third-party certification continues to result in a higher sales price, even during the past year when home sales were down."

A study conducted two years ago by the institute in Seattle and Portland identified what may be another plus: Homes marketed with energy-efficiency certifications appear to sell faster on average than those without. The study tried to come up with rough comparability in appraisal terms between certified and noncertified properties, and it found that in Portland, certified homes spent 18 days less time on the market after listing than noncertified counterparts. In both Portland and Seattle, researchers documented price premiums — 9.6% in Seattle, 4.2% in Portland — in a statistical analysis with a 95% confidence level.

A recent study on houses in San Diego and Sacramento published by the National Bureau of Economic Research took a different tack: When you install photovoltaic solar panels on your roof, how much do you get back in market resale terms, beyond monthly energy savings?

Researchers examined a sample of home sales in the $500,000 range in both metropolitan areas between 2003 and 2010 and found that, on average, solar panel installations cost owners $35,967. But with federal and state subsidies, the net average cost came down to $20,892. This net expenditure, in turn, yielded an increase in appraised value by $20,194 — a 97% rate of recovery on the investment.

Though less than 100%, the rate is much higher than most home improvements in the most recent "Cost vs. Value" study conducted by Remodeling magazine — well above major kitchen and bathroom renovations.

Kevin Morrow, senior program manager for green building at the National Assn. of Home Builders, says that although many newly constructed homes come with energy and sustainability certifications, banks don't necessarily recognize their value when it comes to providing mortgage money.

For example, bank underwriters often do not include reduced monthly utility costs in the household income/household expense ratios that affect the maximum mortgage amounts available to buyers.

"The case needs to be made" to lenders, he said, "that, hey, these houses will cost less to operate, so they should be worth more."

Morrow added that appraisers are part of the issue as well if they don't have the training to recognize and credit extra value to houses that have money-saving solar installations, geothermal heating and cooling, Energy Star appliances, water conservation features and other green improvements.

The Appraisal Institute, the largest group representing that industry, says it has sponsored "green" appraisal courses for 2,300 appraisers during the last two years. It says it strongly supports efforts to better incorporate energy and environmental factors into mortgage underwriting and home valuations, including a possible congressional mandate requiring it.

http://articles.latimes.com/2011/aug/28/business/la-fi-harney-20110828