RESNET Conference Jim Amorin, MAI, SRA, AI-GRS Sandy Adomatis, SRA, LEED Green Associate

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1 RESNET Conference Jim Amorin, MAI, SRA, AI-GRS Sandy Adomatis, SRA, LEED Green Associate Communicating HERS to Appraisers and Real Estate Sales Agents March 1, 2017

2 Jim Amorin, MAI, SRA, AI-GRS 2

3 Session Highlights HERS Rating Communicating with appraisers and real estate agents The importance of HERS Informed buyer and seller decisions 3

4 The HERS Ratings is Lowering Year Lowest HERS Rating Highest HERS Rating Avg. HERS Rating Source: RESNET 4 4

5 4-year HERS history showing states with more than 40 percent of building permits with HERS ratings Source: RESNET and NAHB statistics on HERS Ratings compared to number of building permits 5 5

6 Just two questions for you Are the HERS ratings lost in the transaction? 6

7 Just two questions for you 7

8 Roadmap Value for Data Holders Automating flow of information Auto-population Sharing data Best practices 8

9 Key National Industry Groups Support MLS Operators in Different Ways: National Association of REALTORS The Real Estate Standards Organization The Council of Multiple Listing Services 9

10 Service Contracts May Need to Change to Allow Release of Data Opt-In/Opt -Out consent Affirmative choice Opt-out consent 10

12 The Roadmap is Written 12

13 HERS Ratings HERS Ratings are only a measure of value if the market understands them 13

14 Do market participants know that 36 MPG Miles per Gallon 0 HERS Energy Efficiency Rating 14

15 Building Energy Code International Energy Conservation Code (IECC) Changes from 2006 and forward IECC Year Percent of Change 2006 Base Year % % % Seems there is a trend here that cannot be ignored 2012 IECC Code requires a Blower Door test and a visual inspection 15

19 Sandy Adomatis, SRA, LEED Green Associate 19

20 AI Residential Green and Energy Efficient Addendum and Residential Green Valuation Tools 20

Third-Party Verifications New Version: 820.

23 Third-Party Verifications New Version: From Residential Green Valuation Tools, by Sandra K. Adomatis, SRA, Appraisal Institute, 2014, p

24 Third-Party Verifications New Version: From Residential Green Valuation Tools, by Sandra K. Adomatis, SRA, Appraisal Institute, 2014, p

25 Third-Party Verifications New version: From Residential Green Valuation Tools, by Sandra K. Adomatis, SRA, Appraisal Institute, 2014, p

Energy-Efficient Section of Addendum Form New version: 820.

26 Energy-Efficient Section of Addendum Form New version: For more information: Residential Green Valuation Tools, by Sandra K. Adomatis, SRA, Appraisal Institute, 2014, p

27 Energy-Efficient Section of Addendum Form New version: For more information: Residential Green Valuation Tools, by Sandra K. Adomatis, SRA, Appraisal Institute, 2014, p

28 Energy Efficient Section of Addendum Form New version: For more information: Residential Green Valuation Tools, by Sandra K. Adomatis, SRA, Appraisal Institute, 2014, p

29 Energy Efficient Section The envelope tightness is 0.50 ACH50 and indicates a tighter seal than the current building code requirement. The insulation provides additional soundproofing, envelope sealing, and good energy efficiency results. The insulation rating of 1 indicates it was installed to meet manufacturer s specifications. Attached is the completed HERS Index Report and the basis for the ratings on this Addendum. The HERS Index of -2 compared to the 2015 state average of 60 indicates this structure exceeds the state average energy rating. This is a net zero energy ready home that produces as much energy as it uses. Keep your comments simple ignore energy jargon For more information: Residential Green Valuation Tools, by Sandra K. Adomatis, SRA, Appraisal Institute, 2014, p

30 Solar Panel Section of Addendum Form For more information: Residential Green Valuation Tools, by Sandra K. Adomatis, SRA, Appraisal Institute, 2014, p

31 Solar Panel Section of Addendum Form For more information: Residential Green Valuation Tools, by Sandra K. Adomatis, SRA, Appraisal Institute, 2014, p

32 Solar Panel Section of Addendum Form For more information: Residential Green Valuation Tools, by Sandra K. Adomatis, SRA, Appraisal Institute, 2014, p

33 Location Section of Addendum Form For more information: Residential Green Valuation Tools, by Sandra K. Adomatis, SRA, Appraisal Institute, 2014, p

34 Objective of this Addendum For more information: Residential Green Valuation Tools, by Sandra K. Adomatis, SRA, Appraisal Institute, 2014, p

35 Include Infrared Photographs From Residential Green Valuation Tools, by Sandra K. Adomatis, SRA, Appraisal Institute, 2014, p

38 What Do YOU Put in the Electrical Box? HERS Index and/or Green Rating Envelope Rating Duct Rating Insulation Installation Rating Date Rated Name of Rater 38

43 Advertising Do your builder s home magazines advertise energy efficiency or green features. This book had one ad that mentioned energy efficiency. 43

44 Documents to provide to appraiser Complete HERS Report Green Rating and worksheets Complete cost breakdown o Highlight the cost of additional energy or green features. Sales data on similar properties Completed AI Residential Green and Energy Efficient Addendum Copyright 2016 Sandra K. Adomatis, SRA, LEED Green Associate 44

45 Choosing an Appraiser Lenders have responsibilities in choosing the appraiser 45

Lender s Responsibility Confirmed by Fannie Mae Copyright 2016 Sandra K.

47 High Performance-Competency Residential Appraiser Competency Requirements Competency Requirement USPAP Fannie Mae Freddie Mac Residential Appraiser Competency Requirements FHA Before Completing X X Assignment Before Accepting X X X Assignment VA Copyright 2016 Sandra K. Adomatis, SRA, LEED Green Associate 47

48 Appraisal Ordering Process Unveiled If borrower does not clearly identify the property as a "high performance" property, chances are the appraiser choice will not be appropriate New Version: New version: Copyright 2016 Sandra K. Adomatis, SRA, LEED Green Associate 48

49 Appraisal Institute Courses 49

50 Appraisal Institute Efforts Follow the process to avoid appraisals that don t get it right 50

51 Jim Amorin, MAI, SRA, AI-GRS 51

Point Out the Solution to Builders Problems http://bcap-energy.

For Buyers For buyers: Assuring a competent appraiser for your new home http://bcap-energy.

For Lenders 2 nd page of handout Encourage builder to use this lender letter with every loan application http://bcap-energy.

57 Getting It Right Follow the procedure Getting It Right Energy features 57

58 Reconsideration of Value Request Form 58

59 Reconsideration of Value Request Form Reconsideration of Value Request Form Instructions Required loan information Sales, listings, and/or concerns requested Verify all information Do not specify a requested value 59

60 Questions? Jim Amorin, MAI, SRA, AI-GRS Sandra K. Adomatis, SRA, LEED Green Assoc. 60

61 RESNET Conference Jim Amorin, MAI, SRA, AI-GRS Sandy Adomatis, SRA, LEED Green Associate Communicating HERS to Appraisers and Real Estate Sales Agents March 1, 2017

RESNET Conference. Scott Robinson, MAI, SRA, AI-GRS Sandy Adomatis, SRA, LEED Green Associate

RESNET Conference. Scott Robinson, MAI, SRA, AI-GRS Sandy Adomatis, SRA, LEED Green Associate RESNET Conference Scott Robinson, MAI, SRA, AI-GRS Sandy Adomatis, SRA, LEED Green Associate Communicating HERS to Appraisers and Real Estate Sales Agents March 2, 2016 10:30 am 12:00 noon 2 Scott Robinson,