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Tonight: 3 Goals No Theory
Learn Choose to Act Choose to Ignore
What I Believe
Real estate SHOULD be:
Healthier Safer Less expensive High-performance
What do we all want?
Love Health Wealth Sex Safety Friendship
Why green homes?
Increased Profits Leverage OPM (Uncle Sam) No competition Eco-Friendly
Home Buyers Want Green Features
According to a ZIP Realty survey:
89% of homebuyers rated energy efficiency the
most important feature in a home.
55% of all home shoppers now cite green home
features as an important part of their purchasing decision.
Less than 1% of homes on the market include
³energy efficiency´ in their description.
Homebuyers who value green features ranked them important for the following reasons:
12% 15% 37% 40% 49%
According to an Apartments.com survey:
60% of prospective renters search for
properties that offer environmentally-friendly amenities.17% of renters said they would not rent an apartment without environmentally friendly amenities.57% of renters said their apartment community does not currently provide environmentally friendly amenities.
In a study done published by Inman News:
³32% of people said they'd pay an extra $5,000 for energy-efficient features, with the presumption that the homeowner would recoup the cost of those items over time.´
Columbine Ave, Phoenix Vacant rental property Market rent = $1000/month Competition for renters = High
What we did:
Improved energy efficiency Improved water conservation Projected utility bill decrease
Cost to owner:
$1500 for materials/labor Rebates = $750 Net cost = $ 750 Time to complete (3 days)
Marketing the rental:
Utility savings Healthier living (Less toxic) Craigslist blind ads
Property rented for $1100/month.
$100 premium above market rent. $1200/year rental increase. 40% higher response to µgreen¶ CL
ad. Property rented prior to work being completed.
Is this µgreen¶ to you?
Less toxic living environment.
3. Less impact on the planet.
Green real estate is:
The process of remodeling an existing structure to create a high performance property.
Common µgreen¶ real estate myths
Costs too much Too complicated No one cares about green
Follow the 3 µS¶s
Seal it up
Systems & Solutions
Sex it up...
Fundamentals of Healthy Green Environments
Less toxic More efficient Polar bear friendly
Energy efficiency Water efficiency Resource conservation Indoor environmental quality
House as a µsystem¶ ³Whole systems´ approach Consume less energy and water Use resource efficient techniques and materials Healthier, safer, more comfortable
Remove, Replace, Relax Remove toxic materials Ventilate the air Use renewable resources
The United States comprises 5% of
the total world population
We use 25% of the world¶s energy
Buildings in the U.S.
Consume 65% of electricity Create 30% of total green house gas emissions Create 136 million tons of C & D waste each year Use 40% of raw materials globally
Building and resource use:
Construction of a 2,085 sq
ft home uses up to 1.5 acres of forest
Where does outdoor water go?
40-60% of potable water goes into the landscape
The likelihood of a child getting leukemia is 6X greater when herbicides are used on lawn More children with cancers had exposure to pesticides than children without cancer Pesticide links exist to infertility, birth defects, learning and neurological disorders, allergies, MCS (multiple chemical sensitivities) Come in on shoes and stay in carpet Moth balls (naphthalene) are one of the most dangerous chemicals available
Indoor air pollution is 2-5 times worse than outside We spend over 90% of our time indoors 60% of homes and 30% of commercial buildings are classified as ³sick´
Air leak issues come from...
1. Duct work leaks 2. Faulty insulation 3. Windows, door frames 4. Plumbing penetrations 5. Fireplaces 6. Floors, walls and ceilings
Ducts leak average of 30% Leaky ducts waste energy an decrease comfort Leaky air ducts can cause negative pressure- this can pull CO out of gas appliances into the home Use duct mastic on all duct joints Do not use duct tape!
Indoor Air Quality (IAQ)
Indoor air/environmental quality IAQ/IEQ
Materials and finishes Combustion gas safety Ventilation and moisture management µSick¶ Building syndrome
Impact of negative IAQ 15% of homeowners may be allergic to
elements in their own homes.
40% of children born today will develop some form of respiratory disease. Prevalence of asthma has doubled since 1976. Increasing links to ADD and asthma in children. Of all the chemicals that EPA monitors, only ozone and sulphur dioxide are more prevalent outdoors than indoors
Indoor Air Quality
Toxins Off-gassing Plastics Ventilation Plants
What is off-gassing?
The release of toxic chemicals from common household materials (paint, furniture finishes, plastic, vinyl, etc)
Indoor Air Toxin Sources
Formaldehyde (urea-particleboard/phenol-osb,exterior grade plywood VOC¶s (gasoline, kerosene,xylene,Toluene. Paint, sealers, adhesives, caulks, can be absorbed by carpets and furniture) Vinyl chloride (human carcinigen, found in PVC) Nerotoxins (backing, glues, fire retardants, styrene,latex binders, fungicides, anti-static and stain-resistant treatments) Carbon monoxide stove,furnace,gas water heater, gas dryer)
c. d. e.
Two main types:
Phenol formaldehyde (used outside)
(Plywood, Oriented strand board)
Urea formaldehyde/ (used inside)
(Particle board, cabinet fiberboard, etc)
Volatile organic compounds (VOC¶s)
VOCs are typically in solvents used in fluid or flexible products
Paints, sealers, adhesives and caulks
Most of the µenes¶ are VOCs Gasoline Kerosene Benzene Xylene toluene
The principle element in PVC products
³Beach ball smell´ Problems with off-gassing, disposal
Human carcinogen Dioxin and hydrogen chloride is emitted from production and during burning
Toxic chemicals in the fiber bonding material,
dyes, backing glues, fire retardant, fungicides, antistatic and stain resistant treatments
120 chemicals; some of which are neurotoxic They last at least 3 years Carpet is neither renewable, nor biodegradable
Carpet is anathema to good air quality
Offgasing and absorption issues Dust magnet (old carpet weighs more than new) Dust mites love it (if humidity is over 53%) Bacteria hide here It holds everything from bottom of shoes
Systems & Solutions
Structural system Increased insulation Air sealing Windows Lighting Energy Star appliances HVAC design, installation and testing Renewable energy
Install water conserving appliances
EnergyStar and WaterSense rated
Install water conserving fixtures/systems Optimize irrigation system Rainwater harvesting Greywater plumbing
Ventilation is the second way to reduce the impact of high concentrations of toxic gases
Natural ventilation (windows, etc) Mechanical ventilation (fans, etc)
Fix air leak issues
1. Seal all holes in building envelop including: sill plates, top plates, electrical openings, plumbing openings, boxes around windows, attic hatches, HVAC closet, door-frames, 2. Use: spray foam insulation, weatherstripping, foam gaskets on electrical openings, etc.
Low energy cooling
Standing in moving air under a ceiling fan makes the body feel 4 degrees cooler, thereby reducing air conditioning needs Increased comfort with the same temperature Choose EnergyStar fans (50% more efficient; have improved motor and blade designs; efficient lighting)
Reduces standby pipe loss Saves water by reducing waste while waiting for hot water at the fixture
Cold Reduces condensation and freezing problems
Green materials and Recommendations
Choosing green materials
Insulation Flooring Appliances Lighting
Natural linoleum flooring
Durable, stain resistant Made of rapidly renewable materials
Linseed oil, limestone, pine rosins, wood powder and jute
Renewable cork flooring
Cork is rapidly renewable (7-10 yrs), naturally fire and moisture resistant, sound absorbing hypoallergenic no trees are cut down
Rapidly renewable bamboo A renewable resource, replenished by natural
Bamboo is fast growing (7-10 years) comparable to wood Full grown stalks are cut lengthwise into narrow strips and glued together either horizontally or vertically
Can be re-sanded and sealed Lots of products in market place
Untreated natural fiber carpets:
Wool, seagrass, sisal Make sure wool is NOT treated with toxic moth proofing chemicals
Install with low or non toxic backing
Best Carpet Choices
Recycled PET fiber carpets available Avoid styrene-butadiene latex backing (get woven backing) Low pile ± high density may be more durable and hold less dirt Look for the carpet and rug institute¶s ³green label´ and ³green label plus´ logos
1. Typical ones are very toxic and off-gas 2. Found in cabinets, floor sealants, caulking, spray foam, carpet backing 3. Look for all-natural alternatives 4. Greenbuildingsupply.com 5. greendepot.com
LED¶s: the facts
LED¶s (light emitting diodes) are making a fast entrance into the residential market LED¶s produce more light with less electricity LED¶s can last 35,000-50,000 hrs.
(CFL¶s last 8000-10,000 hrs)
Refrigerator and freezer
Single largest power user in most households EnergyStar is minimum goal Size matters; small saves www.energystar.gov
Horizontal axis washer (Front Loading)
Use 40% less water & 50% less energy than most models Faster final spin- reduces drying time and cost
1. Chose No-VOC or LOW-VOC paint 2. Available at most most home stores 3. Very comparable to regular paint
1. Use natural/solid woods when possible 2. Stay away from OSB and pressed wood products 3. Glues and sealants used are toxic 4. Other great materials: brick, tile, metal. 5. The more natural, the better
1. Replace old/faulty appliances 2. Look for Energy Star appliances 3. Washers, Dryers, Hot-Water heaters, Dishwashers
Mistakes to avoid
1. Spend too much 2. Do too much 3. Don¶t consider payback 4. Don¶t consider end-buyer¶s wants/needs 5. Don¶t have a clear plan
Free Money System
Rebates Tax Credits Incentives Grant money
What money is available?
Where is it?
City County State Federal NGO¶s
Energy Efficiency Loan Programs
Sex it up...
Buy on emotion, justify with logic
Don¶t be this guy...
³Don¶t give them what they want, give them what they NEED´
Trip to Hawaii Bentley Mansion
Groceries Car Shelter
Cool looking lights Lower utility bills Luxury Safety
What buyers/renters need:
Save money Live safely
Sell Planet first = you lose Sell Savings/heath first = you win
Environmental benefit is a BY-PRODUCT
How to Increase Appraisal Values
1. Energy Audit report. 2.Build list of energy-efficient measures completed. 3. List of energy-efficient materials/ equipment installed. 4. Project annual utility expense savings based on historical data. 5. Projected asset value increase 1025 x annual savings)
Make Marketing Automatic
µGreen¶ Sale Sign
Sold for $5000 more, 61 days faster than market
Steps to build a green real estate investing dynasty
Determine your µWhy¶
Hire Free Interns
³What¶s in it for them?´
They are passionate about green. They want the experience. It looks good on their resume.
Write Publish Repeat
4 of top 5...
Leverage Existing Data
(Warning: ugly slide coming up...)
Why Green, Why Now?
One Reason Only:
Something needs to change for you right now
Mountain bikes and Cosmetic Surgery
Potential Urgent Needs:
Falling revenues and decreasing profits
You need $200K by Tuesday
µThe Australians are coming...´
Launching your business next week (without a C.A.)
Don¶t pursue if you¶re just µInterested¶ or µcurious¶
Are you Thriving?
Jim Simcoe JimSimcoe.com 760-271-7128
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