	A Member Services Organization

Information for Real Estate Agents

Who needs you?
Home buyers. They are placing greater emphasis on the energy efficiency of a home in their decision to buy. You are now in a position to be even more a part of a home's sale than ever before. This trend in the home market has been shown in a number of recent consumer market surveys:

Nation's Building News - 1996 survey of home buyers conducted by the National Association of Home Builders and Fulton Research of "Top Ten Trends in Consumers' Demand in New Homes". Increased energy efficiency rated number nine.

National Family Opinion Research - 1997 survey of consumers in 39 regions who had bought a new home in the past 36 months. Survey found:

	89% of home buyers want energy efficient upgrade options
	83% are most likely to use a builder who offers these upgrades

1998 Pulte Tucson Division Survey - Found that 69.9% of buyers would spend an additional $1,200 - $1,500 for upgraded energy efficiency if it would result in annual utility savings of $300.

Appraisal Journal - 1998 study commissioned by Environmental Protection Agency reported that value of a home increases by an average of $20 for every $1 decrease in annual utility costs.

Not Just A Fad
Nationally there is an emerging market force towards energy efficient homes. From Florida to Alaska Real Estate Agents are increasingly marketing the energy efficiency features of a home to capture this new dynamic market trend.

Tools You Can Use
Real estate professionals across the nation are also aware of this market opportunity. A recent national survey of real estate professionals conducted by the Realtors National Market Institute found:

	Potential home buyers ask more questions about the cost of maintaining a home than anything else.
	94% of new home buyers believed energy features were important in their buying decision. Energy features ranked in importance above such popular features as wall-to-wall carpeting, dishwashers, and fireplaces.
	78% of real estate appraisers believed that energy efficient homes were worth more - approximately 5% more. (Source: South Carolina Electric & Gas)

The ability to leverage a home buyer's investment in energy efficiency increases the number of qualified home buyers and increases the purchasing power of the consumer. A recent analysis by the Environmental Protection Agency confirmed that energy efficient mortgages can have a dramatic impact on increasing the opportunities for home ownership. The analysis found that an average of 6.8% more families would be able to qualify for a mortgage through an energy efficient mortgage.

Another study published in the Appraisal Journal documented that the market value of a home increases $20 for every $1 decrease in the annual energy costs. According to a recent analysis by the Pacific Northwest National Laboratory building a home to exceed the Model Energy Code would result in an annual savings of $170 to $425. Applying these findings to the analysis published in the Appraisal Journal would equate to an increased home market value of between $4,250 to $10,625.

A home energy rating provides a buyer the benefit of an on-sight inspection by a trained and certified residential energy efficiency professional, the home energy rater. With this independent, non-regulatory inspection of the home, consumers will have greater confidence that the home they are considering buying is energy efficient. The mortgage industry also offers preferred financing for homes that are documented to meet the EPA's ENERGY STAR Homes standards.

Links
Energy Improvement Mortgages underwritten by Fannie Mae, Freddie Mac, FHA, and VA also offer an opportunity for buyers of older homes to make energy improvements and roll the improvements into the mortgage loan. Information on the Energy Improvement Mortgages offered by Fannie Mae, Freddie Mac, and FHA can be accessed by clicking their respective icons above.

RESNET Mortgage Lender Directory
(Lenders offering Energy Mortgages)

How Much Larger is My Market
(with the 2% stretch)

Energy Star
(Mortgage Products)

Appraisal Journal

Pulte Homes Survey