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Appraisal Addendum has Potential to Change Green Housing Landscape
Franchises Race to Green
GRC Applauds 2011 EverGreen Award Winners
NAR's Green REsource Council and Green Designation
Understanding Eco-Terminology

Appraisal Addendum has Potential to change Green housing landscape

The Residential Green and Energy Efficient Addendum, released by the Appraisal Institute, could change the green housing landscape.

Real estate practitioners have long recognized that one missing link in their green efforts was appraisals that documented and valued green home features.

Practitioners could push green upgrades, and homeowners could install all sorts of green whistles and bells, but if appraisers don’t recognize the value of those features, homeowners don’t get credit for such work.

That made efficiency upgrades less compelling, given that many homeowners are still driven by dollars and cents. They asked, "Why spend money on upgrades when I'm not going to get any financial benefit from them?"

A new day

The addendum is a quick-to-fill out, easy-to-understand form that appraisers can use when valuing homes with green features.

"It opens the eyes not only of the public, but of professionals as to how different a green home is compared to a code-built home," comments Sandy Adomatis, of Adomatis Appraisal Service in Punta Gorda, Fla. She was instrumental in spearheading and designing the addendum, and has been actively promoting green concepts in the appraisal industry.

Adomatis and Sue Bechtel, GREEN, of Iowa Realty in Des Moines, Iowa, teamed up to discuss the Residential Green and Energy Efficient Addendum and its uses during the January 2012 Webinar.

Key categories

Adomatis said that one objective for the addendum was to give appraisers a checklist they could run through quickly when inspecting a green home. 

Categories addressed in the form are:
•    Insulation
•    Water efficiency
•    Windows
•    Day lighting
•    Appliances
•    HVAC
•    Energy Rating
•    HERS information
•    Utility Costs
•    Energy Audit

In addition, a section for comments lets appraisers make notes about green features and findings.

Adomatis believes that the sections on energy and HERS pack the most punch. The HERS rating, for instance, is quantifiable and it's verified by a third party.

As for energy, says Adomatis, "That's area where an appraiser can actually measure values and differences in a home."  It's something she believes buyers will pay attention to, especially when they're making apples-to-apples comparisons of houses and they see that one has $95 monthly utility bills and the other has $200 bills.

Power tool

And she says that such cost distinctions could be an especially valuable marketing tool for real estate practitioners. 

Bechtel agrees and says, "It will be very powerful when sellers start seeing it, and that should push appraisers to get with the program."

She envisions leveraging the addendum during listing presentations. It can be especially potent among homeowners who don't even know the addendum exists. "You can impress them by putting it in front of them, if you think the home qualifies," comments Bechtel. 

Delivering legitimate comps

The addendum will become even more valuable, believes Adomatis, once the market starts demanding green features and when MLSs feature a wealth of green data showing the discernible value for those green upgrades.

"Having this form and the green MLS working hand in hand will begin to move this data to the forefront that we can readily pull and analyze," comments Adomatis.

For now, there's a need for education and a push to gather green data and disseminate it properly. "It's going to take real estate practitioners pushing lenders and lenders pushing appraisers," says Adomatis.

3 Steps

Here are three things to keep in mind when advancing the addendum.

1.  Request a competent appraiser, who has had green education, suggests Adomatis. Fill out the green addendum and take it to the lender so he or she sees that they're dealing with a different home.
2. Hand the addendum to appraisers during inspections. Quiz them about their green education and knowledge to be certain they're competent to evaluate green home features.
3.  Understand all the terms used on the form, recommends Bechtel. She also says it's important to be current on incentives because they change so frequently.  

 Franchises race to Green

It's not just individual practitioners who are have turned their attention to green and have revamped their businesses to capture new business and clients.

Companies, too, have recognized the growing power of green and have taken steps to make sustainability education and green practices a greater focus of their businesses.

Sarah Coulter, GREEN, LEED AP, EcoBroker, a consultant with @properties in Chicago, puts it succinctly. "It's a huge trend and it makes sense on the business and facilities sides to stay on top of what's coming down the pike."

All the major real estate players now count NAR Green Designees as part of their team. According to the GRC, for example, Coldwell Banker counts 443 NAR Green Designees among its ranks, RE/MAX has 360, and Keller Williams has 314, and Chicago-based @properties has 86.

Integrated green policies, programs

Encouraging and delivering green education is critical, but that is just one aspect of companies' overall sustainability efforts.
Many have made an across-the-board commitment to green to bump up business, respond to growing consumer demand, reduce operating costs, and do a good turn for the environment.

For one, they've integrated green education, whether it's encouraging practitioners to get a green certification, offering on-demand green education, or sharing sustainable knowledge with clients.

RE/MAX for instance, offers agents 24/7 on-demand education to help them build on and brush up on green knowledge. It includes segments on everything from developing green partnerships with builders and developers and attracting green buyers to more hands-on topics. One illustrates how a broker incorporated green features into his new office to save money and protect the environment. Another details how an agent made inexpensive green upgrades to a property that was languishing on the market and then was able to sell it in five days.

Keller Williams, for one, believes it is just the right, smart thing to do. “We look at everything from a healthy, money-smart, and sustainable perspective," comments Danny Thompson, director of Keller Williams Publishing, Austin, Texas. 

The company has been working to get the word out to everyone—clients, Keller Williams staff members and salespeople--about the overarching benefits of green choices. "If you look at inside of your house, there are simple things you can do that are healthier and better for your family, better for the planet, and that can save money," he observes.

The company shares that message through a book, Green Your Home, that Gary Keller just wrote. In it, he provides insight and practical tips on going green and argues that green choices and making sustainability a way of life provide all-around benefits to everyone--families, businesses, the community and the world.

Leg-up

And the benefit to business is a marketing leg-up.

Coulter notes that in this kind of market, sellers and their agents need to capitalize on every single competitive advantage, such as green features, that a house has. And the same goes for the agents themselves, she says.

The reputation as a cutting edge firm that @properties has developed, along with agent education, has given the company an edge.

Of its 1,100 agents, 97 @properties agents have some kind of green certification, whether it's from the Green REsource Council, USGBC or a local program.

And later this year or in early 2012, Coulter expects that number to rise because the company is planning a new round of green education. One reason for more education? "Doing additional education keeps you competitive," she comments.

Keith Katte, director of RE/MAX University agrees. "When we see builders and developers that have green complexes and communities, our offices have been able to get those listings because of their green designations," he comments.

Better service, more clients

And for companies, strong green policies and education programs also serve as something of a recruiting tool.

RE/MAX, for instance, has heard from agents in the field who are passionate about the environment and say that they shopped around to find a company that supports sustainability. Adds Keith Miller, project manager, brand marketing RE/MAX, "It provides another touch point with agents looking for a real estate network to join. Many have joined RE/MAX because we're a major player with green-specific policies." 

And Coulter acknowledges that agents looking for a change have been attracted by @properties' green agenda. Moreover, such programs also serve to cement the company's image as one that is progressive and cutting edge.

Thompson views its commitment to green education and its sustainable practices as a way to best service agents who have developed a green business niche. "They're with a company that supports them and their ideas with our education, leadership, and by the way we do business," he says.

Good corporate citizen

Yet companies know they can't just promote green education alone. Sustainability needs to be a highly-visible, across-the-board initiative. 

In Keller Williams' Austin headquarters, for instance, motion detectors turn off lights automatically and recycling messages are constantly pounded home. And it also offers a completely paperless transaction management system to all offices looking to save on money, ink, paper, and storage.

And harnessing the power of the sun is just one way that Prudential Real Estate and Relocation, Scottsdale, Ariz., exhibits its commitment to the environment. It installed solar panels on its roof and on top of about 500 roof-covered parking spaces. It also installed two electric charging stations that can be used by building occupants or travelers in need of a charge.

"Since the system went on line in September 2010, we've generated about 1.4 kilowatt hours of power and we've prevented about 1,200 metric tons of carbon from entering the atmosphere," says Jimmie Gonzalez. And the facility now gets about 23 percent of its energy from solar panels. The solar project, according to Gonzalez, is just one part of a larger effort in the company's vision to green the entire enterprise.

Bright green future

All such efforts by companies, including facility upgrades, education, sustainability policies, and a greener overall corporate mentality, also position them for a bright green future.

"We envision a day when we don't call it a green program or green designation, but that green is so ingrained in our culture that it's just part of the regular real estate process," comments Chris Pflueger, assistant regional director for RE/MAX of Florida. "That day is coming."

Green Education Benefits at a Glance

Here are four ways that companies with green policies and green education programs benefit.
Green education can:

-Give companies and agents a key differentiator and a market advantage
-Serve as a way to illustrate that a company is at the forefront of social environmental concerns
-Help to address an increasing consumer demand
-Serve as a recruiting tool

GRC Applauds the 2011 EverGreen Award Winners

The votes are in. They're counted. And the winners for the 2011 EverGreen Award have been picked.

The Green REsource Council and an independent panel chose four outstanding GRC members to be honored this year.

They are Evan Little, Melisa Camp, Bill Costley, and the New York State Association of REALTOR®, Inc.

The EverGreen Award winners exemplify what the GRC is all about. Winners have been dedicated to advancing the green industry, they're committed to education, they stay on top of the latest green research and science, and each day they embrace sustainable practices in their work and life.

You can read more in-depth profiles of the winners in future issues of the GRC newsletter.  In the meantime, here's a snapshot of the four.

Community green pillar

Evan Little, REALTOR®, GREEN, LEED GA, has become central to the green home industry in his Southern California market. In addition to his work at Surterre Properties, Inc., where he does property sales, rentals, investments, property management and consulting, he's also been instrumental in getting green features and fields added to his local MLS.

Little spent several years organizing the Orange County Green Drinks chapter and has gotten multiple green industry credentials.
Clients give him the nod for "walking the walk" and for being a green pillar of the community.

Queen of green

Melisa Camp, REALTOR®, GREEN, LEED GA, aims to become the green queen in Phoenix, Ariz. She's well on her way.  Whether it's her work with the Green Phoenix Chamber of Commerce, her service as a Board Member for the Arizona Young Professional Network or her volunteer activity her local chapter of the U.S. Green Building Council, Camp works to build awareness and demand for green construction and renovation.

She authored and teaches a free, three-hour continuing education course to agents in the Phoenix area entitled "Speaking Green in the Residential Marketplace." She shows her commitment to green in various ways, including operating a completely paperless office and using solar panels on her house. In addition, the 30 green events she attended this year have helped her to keep her green knowledge up to date.

Setting a green example

The New York State Association of REALTORS®, Inc. (NYSAR) encourages members to get up to speed on green trends and the latest products available.

NYSAR features a distinguished faculty and has been offering NAR's Green Designation program since it began. The association offered 11 sets of courses in 2009, six sets in 2010, and eight sets in 2011. As of May 2011, NYSAR had 451 NAR Green Designees in New York State.
 
The association also sets a good example with its office space. It performed an energy audit on its building and has made energy-saving modifications. Among them were new, efficient light fixtures and a window upgrade. NYSAR also is evaluating a rooftop solar system.

Always a teacher

William (Bill) Costley, an instructor for NAR's Green Designation, has always been an outdoors person and someone passionate about preserving resources. He's a lifelong teacher and spent 30 years teaching high school biology, chemistry, human physiology, and ecology. After his career in education, he teamed up with his wife to sell real estate.

But once a teacher, always a teacher.

Costley combined his interests in the environment, real estate and education in his work with the Traverse Area Association of REALTORS® where he's director of REALTOR®, Education Services.

One focus has been teaching students in the Traverse City area about the value of sustainability in homes. Costley has also played an integral role in greening the TAAR MLS and he taught the entire TAAR staff and 10 percent of TAAR members NAR’s Green Designation courses. The effort helped his association receive the 2010 Green REsource Council EverGreen Award.

Meet the winners

Remember, you can read more about the winners in the coming months.

But if you need a dash of inspiration from these winners, you can meet them in person.

They'll be taking a bow during the REALTORS® Conference & Expo at a special reception on Sunday  November 13th from 5:00 to 7:00 pm at the Grand Californian Hotel and Spa in the Sorrel Room.

The event is a terrific place to relax with like-minded professionals, learn about new initiatives from fellow members, and broaden your green network. 

NAR's Green REsource Council and Green Designation

The Green REsource Council and NAR's Green Designation were established by the Real Estate Buyer's Agent Council (REBAC), a wholly-owned subsidiary of the National Association of REALTORS®, in response to the increased interest by real estate buyers, sellers and practitioners to educate themselves on sustainability in real estate.  

The Green REsource Council awards NAR's Green Designation to agents so that they can guide consumers and aid them with green properties. The Green REsource Council's mission is to make the knowledge of green real estate practices available to everyone and to encourage our industry to produce greener homes and buildings.  REALTORS® who earn NAR's Green Designation have exclusive access to the timeliest information from the green industry, as well as top notch benefits and support from the Green REsource Council.


NAR's Green Designation illustrates how such a unique market shift can bring light to a new and imaginative generation of REALTORS®. NAR Green Designees use the tools and reference materials available through their designation as a catalyst for increasing community awareness on green issues. Through networking, marketing, and experience, NAR Green Designees can build their business by utilizing the benefits offered by the Green REsource Council. The Green REsource Council staff helps steer designees through the program, and supports the REALTORS® dedicated to this industry shift by showing them how to achieve the greatest possible value from NAR's Green Designation.


Green REsource Council's History


The National Association of REALTORS® (NAR's) Green REsource Council, founded in 2008, provides ongoing support for agents. As the interest in green homes increased, NAR responded by creating the Green REsource Council and the subsequent Green Designation. Upon the initial launch of the program in November, 2008 at the National Association of REALTORS® Annual Conference and Expo, the immediate success and positive reception of this designation was evident. Over 250 students attended the initial course in Orlando, Florida. Within the first year, over 3,500 REALTORS® had completed the 18 hour curriculum and earned the only green real estate designation recognized by NAR. The development of the courses was quite involved. The rising interest in green issues demanded only the most recent and applicable industry information. The Green REsource Council collaborated with other industry organizations that had a solid history in sustainable homes and buildings to compile course content.


Working with an esteemed panel of subject matter experts from the U.S. Environmental Protection Agency, U.S. Department of Energy, the Institute for Real Estate Management, National Association of Home Builders, United States Green Building Council and a wealth of other organizations with ample experience in green building technologies, NAR's Green Designation courses were developed. In order to include the appropriate balance from all reaches of the green industry, the program was originally designed as multi-track, allowing students the opportunity to choose from green residential real estate, green commercial real estate, or green property management. 


For the 2008 designation launch, NAR’s Green Designation required the completion of the two-day Core Course and the student's choice of one of the three above mentioned elective options depending on where they worked most.


By the end of 2009, the Green REsource Council had taught hundreds of courses around the US and Canada and had developed a thriving community of vested, passionate NAR Green Designees. To accommodate this growing group, a robust inventory of membership benefits for NAR Green Designees was developed. In early 2010, the Green REsource Council collaborated with green industry professionals from various backgrounds to develop the Green MLS Tool Kit, which outlines recommended steps from industry experts and early Green MLS adopters on adding specific green home information and value to the nation's MLSs.


As this and other initiatives took shape, the young NAR's Green Designation program continued to grow in popularity of concept and numbers. By the end of 2010, more than 6,000 REALTORS® had completed the program. After listening to the market response and industry feedback, NAR's Green Designation began a more focused update of the designation curriculum in early 2011. This new version of the program, scheduled to launch in the summer of 2011 offers an entirely residential focus as a way to address the high member demand for residential green content. As we lead up to the launch of the updated version of this designation, the staff at the Green REsource Council continues to provide the highest quality and value through member benefits.


Education: Earning NAR's Green Designation


NAR's Green Designation updated program will shift from the original format of a two-day Core Course and one-day Elective to three one-day courses focused on residential practice. Each day of the new courses has a specific theme, growing from awareness and understanding to application skills.  

 
To obtain and use NAR's Green Designation, three (3) requirements must be fulfilled:

1.)  Complete the following courses and pass each exam with a score of 80 percent or higher:

a.  Green 100:  Real Estate for a Sustainable Future – Awareness and Comprehension

b.  Green 200:  The Science of Green Building – Research and Insight

c.  Green 300:  Greening Your Real Estate Business – Application Skills

2.)  Submit the member application for NAR's Green Designation with proof of completion for all course requirements and proof of your REALTOR® membership.


3.)  Maintain active and good membership status with the Green REsource Council and the National Association of REALTORS®.


The Designation


NAR's Green Designation is not part of a fad. Green real estate is altering fundamental market dynamics as the number of green-based codes and building regulations increases and consumer interest in the cost-savings associated with green homes begins shaping the market. According to McGraw-Hill Construction's Green Outlook 2011, the economic recession has actually increased the growth rate of green building activity. Green transactions can be especially tricky if entered into without a robust knowledge. Pairing NAR Green Designees with clients will help buyers and sellers distinguish fact from fiction, and make educated decisions about green materials, energy-efficient technology, and green ratings.


Member Benefits 

The Green REsource Council holds membership benefits for NAR Green Designees to the highest standards and is committed to making only the best, most relevant information and tools available. Upon earning NAR's Green Designation, members will have access to a wealth of benefits.

Featured Benefits:

•  Online Directory Profile:  Displays a members designation and information to connect them with potential clients on four automatic profiles.

•  Customizable PowerPoint Presentations:  Designed for various audiences to address buyers, sellers, or builders, and showcases the knowledge and tools available to NAR Green Designees, as well as the importance of working with a REALTOR®.

•  Exclusive Industry Webinars:  Available only to NAR Green Designees at no additional cost. These webinars are hosted monthly by the best and most relevant industry experts and focus on green industry and professional development topics.

Additional Benefits:

•  The REsource:  An electronic monthly newsletter published by the Green REsource Council.

•  Print at Home Marketing:  Promotional tools include logos for print media and member Web sites, postcard options, marketing brochures for consumers and builders, and personalized press releases on a variety of topics.

•  Online Print Shop:  Fully interactive, Web-based shop that allows designees to customize marketing pieces for the designation and have them printed on eco-friendly paper and sent directly to clients.

•  GRC Online Community:  Log on to our personal social media site to connect with designees nationwide and explore blogs and forums for sharing local events, best practices and client referrals.

•  Designation Kits:  An official member kit including designation certificate, NAR’s Green Designation lapel pin, order form for a special REALTOR® Edition of the U.S. Department of Energy's Energy Savers booklet, and NAR's Green Designation Membership Guide.

•  Additional Credit Opportunities:  Completing NAR’s Green Designation gives REALTORS® credit toward the Accredited Buyer’s Representative (ABR®) designation, Certified Residential Specialist (CRS) designation, or RSPS (Resort and Second Home Property Specialist) certification, putting you one step ahead of your fellow practitioners.

•  National Consumer and Builder marketing campaigns:  Increased awareness of NAR’s Green Designation. This campaign focuses on consumer awareness on various elements in green real estate purchases, as well as builder awareness so as to ensure the green philosophy addresses all necessary facets of real estate before, during, and after a real estate transaction.

•  Toolkit and Research Resources:  Available online through the Members’ section of our Web site, these tools provide up to date information on neighborhood development trends, studies, and more.

•  Green Incentives and Resources Guide:  Connects your clients to available state and federal rebates on eligible purchases or upgrades.

•  Green MLS Toolkit:  Guides designees through simple steps of adding green fields to their local MLS. Features case studies and sample documents.

•  EverGreen Awards and Networking Reception:  Recognizes designees annually who have exceptional accomplishments in the green industry and their communities.


Get Green and Grow


If you're ready to be a green real estate leader in your community, get started today by locating a live course or registering for an online course. This unique program provides vital training, support, and information to real estate professionals who are looking to advance their businesses and raise awareness in their community about the cost savings, health benefits and overall value of homes with green features.  NAR's Green Designation does more than introduce REALTORS® to this important topic; it encourages dialogue among industry professionals about the positive change in housing toward smarter, healthier, more sustainable homes and neighborhoods.

Understanding Eco-Terminology

It's a fair-trade, earth- and eco-friendly product that was sustainably produced, hand-made and locally sourced. It's chemical free, organically grown and it will reduce your carbon footprint, combat global warming and save energy.

Sure, the above description is a ridiculous exaggeration. But lots of marketers do load up their promos with such language, and it leads to confusion and skepticism among consumers. 

But the Federal Trade Commission (FTC), in an effort to more clearly define green, is revising its "Guides for the Use of Environmental Marketing Claims." The guide was first issued in 1992 and most recently revised in 1998. 

It helps marketing gurus, including REALTORS®, choose language so that they're making truthful and substantiated environmental claims. It does so by offering some rules of thumb about environmental marketing claims, how consumers may interpret particular claims and how to qualify claims so they're not misleading.

As a result, consumers may get a better handle on what product claims concerning certifications, seals of approvals and eco-friendly actually mean. To get a full grasp of eco-terms, real estate agents can take NAR's Green Designation. This program is currently offered at discount online, saving you almost $100 off the original price. For more information on how you can boost your marketing with the correct use of eco-terminology, find courses and resources on GreenREsourceCouncil.org.

A step forward

Helping your clients understand the impact of certain green terms begins with the FTC, and it's this organization's duty to keep consumers of all kinds up to date. The FTC's October 2010 proposed changes incorporate new terms that weren't common when the guides were first developed. Among them are some terms you may know: 'renewable materials' and 'renewable energy' and 'carbon offsets.'

Sections and terms undergoing revisions include 'degradable,' 'compostable,' 'ozone-safe,' and 'certifications and seals of approval.' 

Al Medina GREEN, LEED AP, Director of NAR's GREEN Designation, sees the guideline revisions as a much-needed advancement for the green industry. "The guidelines on claims about a product's sustainability as proposed by the FTC are a major step toward minimizing greenwashing," he comments.  "This will help separate the true sustainable companies and products from companies that see sustainability as just a marketing tactic."

Weigh in

The FTC was looking for comments before finalizing its revisions. They were due by December 10, 2010, but currently are under review. The comments they are working with relate to specific questions that include:

-    Do consumers understand the difference between pre-consumer and post-consumer recycled content?
-    How do consumers understand "carbon offset" and "carbon neutral" claims? Is there any evidence of consumer confusion concerning the use of these claims?
-    What changes, if any, should be made to guidance on pre-consumer recycled content claims? How do consumers interpret such claims?

You can find a summary of the proposed revisions at the FTC web page.

The entire document is available as well.

 

Learn green real estate concepts, principles, practices and benefits from the ground up in a way that makes sense to you and your clients. Stand out with the only green designation for real estate agents and property managers recognized by the National Association of REALTORS®. Put yourself at the forefront of the green movement by earning NAR's Green Designation and help your clients take small steps to big change.