Melisa Camp's, "The Green Queen" Blog: Bring The Green

By Melisa Camp, LEED AP Homes

Green home sales rise slightly in the Phoenix metro areas in 2011 with ENERGY STAR and SRP PowerWise certified homes leading the charge.

Residential Sales Data
The Phoenix-metro certified green home sales statistics are in and have doubled since 2010, according to a research study done by Melisa Camp, LEED-AP Homes, and Realtor, GREEN with Go Green Investments, LLC. The study looked at all certified green homes sold through the Arizona Regional Multiple Listing Service (ARMLS) in 2010 and 2011.

Although green home sales have doubled in the last year, the market share for these homes is barely on the map and accounts for less than 1% of all homes sales. Green homes did not sell faster than traditional homes, in fact they were on the market 104 days compared to the average home’s 102 days. The good news is that certified homes sold at a premium, on average over $31 more per square foot than non-green homes.

Certified Green Homes in Phoenix Metro account for less than 1% of total sales

Rating Systems

ARMLS currently identifies the following residential green rating certifications: ENERGY STAR, LEED-Homes, LEED-Neighborhood Development (ND), NAHB Green, Scottsdale Green Building Program, and SRP PowerWise Homes. ENERGY STAR certified homes topped the charts with 755 homes sold in 2011, SRP Power Wise homes followed with 289, then LEED for Homes 35, Scottsdale Green Building Program 30, LEED- ND 13, and NAHB Green 12*.

Breakdown of ARMLS recognized rating systems and green home sales in 2010 and 2011

Different Shades of Green
It is no surprise ENERGY STAR homes (for new homes only) topped the lists being that it is the oldest recognized rating system, released in 1996. It also has the least amount of credit categories and prerequisites (only considering energy savings, with air quality optional) to achieve 3rd-party verified certification. Scottsdale Green Building Program, released in 1998, also had noticeable sales considering it is only inclusive of one city in the MLS, and includes 14 different credit categories and 28 prerequisites.

Bigger Picture
Sixty-three percent of all sales through ARMLS were distressed in 2010 and 64% in 2011. However, less than 10% of certified green home sales were distressed in 2011. Perhaps we can conclude green homes retain value and/or occupants of energy efficient homes have lower monthly bills they are less likely to default on their loans.

*Go Green Investments, LLC obtained the following information from ARMLS and does not guarantee the accuracy of these figures. At present ARMLS does not require documentation of certification by agents listing the homes. As a result, data integrity may compromised.

This week, Realtor.com asked me to comment on the state of the Phoenix market and trends I saw for some media releases. Here’s my take on what’s happening:

In the local Phoenix market I am seeing a drastic reduction in the supply of listings which is great for sellers and making it harder for buyers searching for the smoking hot deals they got away with in the past. However, on the flip side, mortgage interest rates are at record lows around 4% and it’s never been more affordable for home ownership. The market has definitely changed within the last year for the better.

I have buyers- both investors and owner-occupants- qualified and ready to buy but competition is a reality. Multiple offer situations are common again, especially with listings priced under $100,000. For example, I listed a home on New Years Eve for $70,000 and within 5 days had 8 offers- 6 of which were LLC’s buying with cash.

Flippers and investors are still trying to capitalize on affordable home prices but I think the banks still have an enormous amount of control in the Phoenix market. There is ‘shadow inventory’ someplace around 90,000 homes and banks are tired of low-ball offers. They have purposely been controlling the inventory to create more demand and drive prices higher.

Regardless, there is much opportunity to buy or sell right now. I anticipate the Phoenix market will see a large increase in transactions come March through July. My advice- get in while the gettin’s good!

One of the best kept secrets in the industry are FHA 203K and Energy Efficient Mortgages (EEM). At NAR’s annual conference Lowe’s was featuring a great program called REbuildUSA. This program is specifically to educate REALTORS® on the two FHA loan programs, which can be used alone or together. The idea behind the program is to transform distressed homes to move-in ready homes.

The 203K mortgage is a construction loan that can be added to any FHA loan, new or existing. It is for owner-occupants or for non-profits only and can be used for single family, multi-family dwellings up to 4 units, or for mixed use buildings. The 203K loans can be used for just about any type of retrofitting with the exception of landscaping. Buyers must qualify for the additional funds borrowed. There is no limit on the amount borrowed, however the property must appraise with the value added post-renovation.

EEM’s are specifically designed for energy efficient improvements like insulation, a new HVAC, efficient windows, PV solar panels, tankless hot water heaters, etc. The limit for energy efficient improvements is $8,000 with an optional $2,000 for weatherization. Buyers do not have to qualify for the additional loan cost. To learn more about EEM’s in detail see the fun video on my website.

Be aware that when writing an offer for buyers seeking 203K or EEM funding you will need at least 45-60 days to close escrow so plan ahead!

“This is the future of real estate,” according to Dennis Walsh, REbuildUSA spokesperson and presenter at the Lowe’s exhibit. As REALTORS® most of us are experiencing distressed markets and there are only so many move-in ready homes available for our clients. These two loan programs are the solution to selling more homes, creating more jobs, and stimulating the economy. Your clients can tailor their home to their taste and it can be ready now. Even better yet- buyers do not have to come up with the money out-of-pocket, can pay for the retrofits over the course of their loan, and interest rates are crazy low right now.

The first step is to first educate the professional (REALTORS®, lenders, contractors, etc.), then empower them drive consumer consciousness. Lowe’s and REbuildUSA have taken out much of the guesswork by supplying pre-approved professionals for referrals. Finally, Obeo is a virtual tour simulation available with this program for those home buyers who just can’t visualize the retrofitting possibilities without seeing it.

Electric cars are coming and Phoenix is getting prepared by installing car charging stations. I saw my first two Blink car chargers while lunching downtown at Hula’s on Central. This is exciting news as one of the biggest factors of the climate change problem we are facing is caused by car pollution. It made me want to investigate further.

Electric car charging Station located on Central Ave. in Phoenix, across the street from Brophy High School

Two new electric cars will hit the market in 2012. The Nissan Leaf and Chevy Volt. Owners who qualify for the EV Project, a public-private partnership to encourage clean transit and lessen dependence on fossil fuels, can qualify for one of 8,300 residential chargers to be installed almost completely free of cost. The company behind all of this change and innovation is ECOtality, a leader in clean electric transportation an storage technology.

The EV Project, in part funded by the federal government’s Dept. of Energy, is planning to install 1000 grid-tied car charging stations between Phoenix and Tucson. They also are installing charging stations in the following other cities: San Diego (CA), San Francisco (CA), Los Angeles (CA), Portland (OR), Eugene (OR), Salem (OR), Corvallis (OR), Seattle (WA), Nashville (TN), Knoxville (TN), Memphis (TN) and Chattanooga (TN), Washington D.C., Dallas (TX), Fort Worth (TX), and Houston (TX).

As of today there are 23 stations installed in the Phoenix area already. Places like Bookmans on 19th and Northern, Phoenix Community College, Clarendon Hotel, Camelback Esplanade, Desert Botanical Gardens, Monti’s Steakhouse, Westin Kierland Resort & Spa are just a few of the locations equipped with the new technology. To participate in the project, locate more charging stations, or just learn more, you can visit theevproject.com.

by Melisa Camp

Sick of throwing your pre-approved credit and insurance mail directly into the recycling bin? What about the phone book that magically shows up on your porch? Well, is it time for you to green your mailbox and save some trees!

Start by going to optoutprescreen.com, a government subsidized website, and stop the offers from being sent for 5 years if you take the quick online sign-up route or permanently if you reply by mail. I recently attended a finance CE course and the mortgage expert, Ryan Halldorson, of Smart Financial Mortgage reported that you can quickly increase your credit score by 5 to 10 points by opting out and telling the credit bureaus to stop selling your information. Institutions that pull your credit will see your choice on your credit report and will deem you more credit worthy since you will not be tempted by new credit all of the time.

As for the phone books, you can go to yellowpagesoptout.com and search by your zipcode. Everything you need to find contact information is digital and on the internet so if you aren’t going to use your copy prevent the waste from the source. Remember REDUCE is the first word in the phrase ‘reduce, reuse, recycle’ because it reduces your carbon footprint more than reusing and recycling!

Appraisers Seek to Add Value for Sustainable and Energy Efficient Homes
by Melisa Camp

Residential appraisers are now equipped with a new tool for helping them to valuate green homes! A very long awaited step in the right direction as there always has been speculation within the sustainability scene of how appraisers have been disconnected and unaware and/or uneducated on how to properly assign value for green homes. Historically, the most common valuation approach- which most of us are probably familiar with- is the paired sales analysis. With this method, a home is compared to similar recently sold homes within a certain vicinity of the subject property.

Obviously, a well-built, cost-saving, healthy, and environmentally responsible home is worth more than an average or below average home in the same neighborhood and appraisers are starting to take note. The new optional form is an addendum to the most commonly used 1040 form in FHA, Fannie Mae, and Freddie Mac appraisals. Both homeowners and lenders can request this form be used in their appraisal.

The new ‘Residential Green and Energy Efficient Addendum‘ is an amazingly comprehensive 4 page form and takes into account factors such as: insulation, water efficiency, windows, daylighting, HVAC, ENERGY STAR appliances, PV solar panels, the LEED and NAHB home rating certifications, HERS scores, energy audits, additions, walk scores and proximity to public transit, landscaping and xeriscaping, incentives utilized, and cost savings. The Appraisal Institute recommends that the homeowner fill out the form and provide the appraiser with the information prior to the appraisal taking place. As a real estate professional I would also provide this to prospective buyers as a marketing piece.

I have always publicly encouraged homeowners, builders, and Realtors to take initiative and educate their appraiser. If no one takes any initiative to tell the appraiser, then they are most likely not going to find out about any green features and it will not be taken into account when they crunch the numbers. For example, there is no way someone who walks into a house will know what is in the walls or attic and it makes a huge difference in the building envelope. Inexpensive standard off-gassing insulation versus $5 per square foot super efficient blown in insulation makes a difference and can be accounted for if you are proactive.

Do not hesitate to talk to your appraiser and provide this form or even a detailed appraisal package complete with home facts: blue prints, receipts, cost savings, incentives used, and third party verifications like energy audits or HERS scores. Eighteen searchable green features and 6 rating systems were added to the Arizona Regional MLS in 2009 and now appraisers are finally catching on. This is a monumental achievement in forwarding green homes and making it worth it to invest in sustainable homes and features.

Contact me at mcamp@hsmove.com for more information.

by Melisa Camp

The Urban Farm is where it’s at this season. Just what is an ‘Urban Farm’ you may ask? Well, essentially it is someones house made into an outdoor classroom on a 1/3 of an acre in N. Central Phoenix that has been around 20+ years and grows a variety of fruit, veggie’s, and herbs.

It seems like I can’t escape the owner Greg Peterson- he’s everywhere lately. I first met Greg at the Keep Arizona Beautiful Awards Luncheon and have to tell you that you don’t know energy and enthusiasm until you have experienced Greg Peterson. He’s a contagious sort of guy. You may have seen him in AZ Green Living Magazine within the last few months and North Central News just wrote about him too. He got my attention and so on one hot Saturday morning my Mom, friend Angie, and I all decided to check out the Urban Farm Tour with about 35 others. Here is what I learned from him.

Get a cheat sheet for growing. As much as I may try, admittedly I’m challenged in growing anything in Arizona. Fortunately, over Peterson’s farming career he’s developed an idiot-proof Desert Planting Calendar telling you what will grow when, when to harvest, and a few other helpful pointers. It is an amazing resource and FREE.

Save your own seeds. Organic seeds are not worth extra cost, just grow without pesticides and chemicals. I also picked up a winter bundle of a dozen different seeds that will grow in the desert now for $35 from Peterson. My broccoli, tomatoes, and lettuce are already sprouting where I once tried to grow flowers.

Plant in sun not shade.

Watch the water. Peterson uses SRP irrigation to water plants every other week in the warm months and once a month in the cool months. He also harvests rain water and uses it. Don’t over water and drip irrigation is much more efficient than sprinklers.

Choose sunken garden beds over raised beds. Sunken beds work with gravity, raised beds don’t.

Earthboxes are great planters to try if you can’t plant in the ground. I also saw these reducing the heat island effect on the roof of the Green and Wired home at Chicago’s Museum of Science and Industry.

Western Organics soil and mulch yield the best results for Peterson.

by Melisa Camp

Intelligent design, technologically advanced, stylish- yet classic, and wise beyond all peers, meet the “Smart Home.” Surrounded by fragrant gardens and living walls in the middle of the Windy city, my family and I visited Chicago’s Museum of Science and Industry and the “Smart Home” exhibit. It is the perfect union of sustainable building [for her]. technology tie-in [for him], and non-stop learning opportunities [for the whole family]. With so much going on in this home here are some of the highlights and features I have never seen anywhere else.

Design
The modular 3-story home boasts both living walls and a living roof to keep the home insulated while providing unique aesthetics. Ventilation ducts were circular, narrow, and located in the corners of each room to make air flow faster and heat or cool the room quicker. Salvaged tables, chairs, lamps, rugs, and other fixtures gave the home some fun twists while the funky grass wallpaper was a hit with my nephews.

Landscaping
Upon stepping out of the Museum we were encompassed by drought tolerant grasses, plants, and flowers. Immediately I noticed the birds and insects naturally pollinating the diverse landscaping as we crossed the bridge made of recycled plastic grocery bags. The solar powered Automower was hands-down the coolest gadget we saw. The rooftop vegetable garden in the water efficient Earthboxes were also a great use of space in the city.

Kitchen
Voice activation controls and a one touch automation panel measured the energy consumption in each room along with controlling the sound (through Sonance invincible speakers), lighting, and blinds. A virtual message board kept the family’s calendar, photos, shopping list, and messages in one place. Countertop composting recycles it’s own weight every 10 days, diverting more than two tons of waste from landfills over it’s life. Refinished cabinets from the University of Chicago 1940′s laboratory gave the kitchen a punch of character and personality.

Baths
One of the most unexpected features was the Cybertecture Mirror. With the touch of a finger weather, sports, news, traffic, Twitter- anything from the web- appeared on the fog-resistant and water-proof mirror. It also could monitor your health and weight all while brushing your teeth with the ionic toothbrush- requiring no water at all. The shower was equipped with a device called Showertime allowing the user to preset how much water they want to use then being alerted once they reach the limit. The bathroom brick tile was also reclaimed from an Chicago old factory.

Of course, the home had PV solar, however instead of the traditional panels it was a thin film like material. It also created energy from another source prevalent in Chicago- you guessed it- wind! Finally, I was tickled to see the huge greywater tanks under the see-though floor in the laundry room. Instead of putting the brown water into the sewer it was reused to water landscaping. All and all there was a lot to see and it’s worth the trip and extra fee to explore. Contact mcamp@hsmove.com for more info.

Camp Quick Bio
Melisa Camp, “The Green Queen” is a Green Realtor, Consultant for Go Green Investments, a LEED Green Associate, and a stay-at-home mother in Phoenix, Arizona. Her volunteer work includes Advocate for the U.S. Green Building Council Arizona Chapter’s Residential Green Building Committee since 2009, serving on the Board of Arizona Association of Realtor’s Young Professionals Network, and participating in the Phoenix Children’s Museum’s Green Team. Camp graduated from Arizona State University with an Interdisciplinary Studies degree in Business and Communication in 2005, and with a Master’s degree from the University of Phoenix in Education in 2008. She recently was recognized for her dedication to sustainability with the National Association of Realtors Green REsource Council’s EverGreen Award and Keep Arizona Beautiful Environmental Stewardship Award.

One day we will be fighting for our water. It IS going to happen. Experts have given us about 40 years until we have a serious water shortage. Water is a limited resource that many Americans take for granted. There is no scientific method of creating more water, however we do have a choice in the matter.

According to a report by CBS News, “Experts do agree: Demand is greater than supply. And 36 states face water shortages in the next three years. Every day Arizona and parts of New Mexico use 300 million gallons more than they get in renewable supply. The extra comes from underground supplies which are not renewable.”

Americans are the most voluminous water consumers, using on average 150 gallons of potable (drinkable) water daily. The average UK citizen uses 40 gallons, China 22 gallons, and Kenya only 13 gallons. We need to wake up and think a little harder instead of just doing what we are used to before it is too late.

Okay, bad news aside, you are in control of your behavior and can start saving water today. No brainer’s like turning faucet off while brushing teeth, keeping showers brief -or better yet- showering with your partner,   putting aerators on faucets and installing low-flow fixtures are quick fixes.

Grass and plants do not need potable water! However, we Americans don’t think twice about putting our clean drinking water through the sprinkler.   Sadly, the typical suburban lawn consumes 10,000 gallons above and beyond rainwater each year. Harvesting rainwater and reusing greywater are great ways to minimize your footprint and save water. My home does not yet have gutters to save rainwater, however I save water by collecting unused shower water with a bucket and watering plants with it, or by putting a big garbage container outside when it does rain. Cost is free using things I already have.

Xeriscaping your yard with drought tolerant landscaping also is   great idea. If you have grass then irrigate twice monthly instead of using inefficient sprinklers. Also, water in the morning or evening so water doesn’t evaporate   much. Another alternative is to try artificial grass- requiring no water at all.

Let’s start to seriously think about the situation we are leaving for our youth. They– maybe even ourselves– will be fighting for water if this mindless consumption continues on a mass scale like it is now. Don’t wait for the world to change. Put a megaphone in your hands and share.

“You must be the change you wish to see in the world.” – Ghandi

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