GREEN Buildings

Per Wikipedia, GREEN building, also known as green construction or sustainable building, is the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building's life-cycle: from siting to design, construction, operation, maintenance, renovation, and deconstruction.

Building GREEN is about a relationship between a building and its occupants and the world around them.  It's a process that encourages the conservation of energy and natural resources to promote a healthy environment.

Reasons for "going green" have three main benefits:  Environmental, Economic, and Social: 

The Environmental issues involve using energy, water and other resources more efficiently.  It also helps protect the health of the building's occupants and makes them more productive. Finally, it reduces pollution, waste and environmental degradation.

The Economic benefits include lower utility bills, tax incentives, mortgage incentives, and higher resale values on real property.  In addition to lowering utility bills, it might reduce operating costs.  There is also the potential of expanding the market for green products.

The Social aspects may improve the health of building occupants as well as an enhanced aesthetic appeal.  It may also limit stain on infrastructure.  Recent studies indicate an increasing demand and importance on GREEN.

Since the real estate market appears to be placing more importance on GREEN and recent studies indicate an increasing demand for GREEN buildings, it is good to know what to look for and how it weighs in comparison to value.  Studies have also indicated a higher value for a GREEN building than a comparable property that is not GREEN.

As part of my Continuing Education as a General Certified Appraiser, I completed a course study sponsored by Lowman & Co in March 2011 on how to appraise GREEN buildings.  First and foremost are the currently established standards/certifications used to evaluate GREEN buildings. 

The only established standard to date is the GREEN Building Standard (2008) ANSI approved ICC-700-2008. www.nahbrc.org/technical/standards.  This Standard, formerly guidelines, defines GREEN buildings for single and multi-family homes, residential remodeling and site development projects yet still allows for the flexibility necessary for regionally-appropriate best GREEN practices.  A related site is the National Green Building Program  www.nahbgreen.org.

There are four Certifications:

1.  HERS Index (Home Energy Rating System) which is a scoring system created by the Residential Energy Services Network (RESNET) www.natresnet.org.  A HERS index of 100 represents the energy use of the "American Standard Building" and an Index of 0 (zero) indicates that the proposed building uses no net purchased energy (a zero energy building).  The lower the home's HERS Index, the more energy efficient is the home.  A one point reduction in the HERS Index equates to a 1% reduction in energy consumption compared to the HERS reference home.  Example:  If a home has a HERS Index of 70, it would be 30% more efficient than a HERS reference home.

2.  LEED Scorecard was created to rate the GREENness of a building.  The U.S. Green Building Council (USGBC) was created in 1991 and is recognized as a leader among GREEN professionals. www.usgbc.org/LEED/homes.  A scoring system is known as "Leadership in Energy and Environmental Design" (LEED).  It is a voluntary guideline for developing high-performance sustainable buildings.  It is a very detailed report and likely too costly for residential properties; can range from a few thousand dollars to $10,000 or more.  Some benefits of getting a building LEED certified include a possible increase in value, may attract more potential buyers, and possible tax breaks, expedited permitting, etc.  The GREEN level of the building (Basic, Silver, Gold, Platinum) is determined by earned points in each of six categories.

3.  The Energy Performance Score (EPS) is a calculation derived after having done an energy audit of the home.  This is done by the EPS auditor.  Electricity consumption is based on kilowatt-hour (kWh), while natural gas uses therms and heating oil or propane may be based on gallons.

4.  The Energy Star Rating is an international standard indicating energy efficient products.  It  was developed in 1992 by the US Environmental Protection Agency (EPA) attempting to reduce energy consumption and greenhouse gas emission by power plants.  Products caring the Energy Star logo use 20-30% less energy than required by federal standards. www.energystar.gov

As an appraiser determining market value on a property from a GREEN perspective, the following building components are considered as Market Desirable Items and are weighted in importance:

Insulation (18%)
Tankless Water Heater (18%)
Energy Star Appliances (13%)
Air-tight Construction (pre-engineered w/insulation in between) (11%)
Insulated Foundation, Walls, Floors (10%)
HVAC Energy Star (8%)
Fixtures such as stools, faucets, etc.(8%)
Windows Energy Star (8%)
Structural Insulated Panels (6%)
Doors (6%)

The information I have learned in this course study is helpful in my current job as a real estate appraiser as I know what to look for in newer construction and in remodeled buildings and the building component weight in the overall value.  I am also very interested in what I have learned so as to make the best decisions when it comes to remodeling my personal house for retirement.  I want to reduce energy costs as much as possible when there will be a fixed income.  There is also a possibility that I may want to work part time in my retirement years and this field offers many opportunities that would allow me to make an income specializing in an area that I find more interesting.

GREEN Websites:

Building America:  www.buildingamerica.gov

Builders Challenge:  www.buildingamerica.gov/challenge

State Incentives for Renewable Energy:  www.desireusa.org

Institute of Green Professionals: www.instituteofgreenprofessionals.org

NAR Green Resource Council:  greenresourcecouncil.org

US Green Building Council:  www.usgbc.org

US Environmental Protection Agency:  www.epa.gov/greenbuilding

US Dept of Energy:  www.energy.gov