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We Haven’t Been

Trained!

Please Help Us!

Energy Efficiency: What’s It Worth?

To A Buyer?

To A Seller?

To An Appraiser?

To The Bank?

To Our Planet?

All Different

What’s an Energy

Wise Investor To Do?

Appraisal Industry

It’s EnergyEfficient!

So What!

Our Hands Are Tied!

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Mainstream Media Has Noticed The Problem

The Following Slides are from CNN

Notice the parts in yellow

(You may want to increase the size of the image on

your computer.)

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Home energy retrofits: The bottom line CNN Money By Steve Hargreaves, staff writer February 4, 2010

NEW YORK (CNNMoney.com) -- Investing to make your home more energy efficient may lower the bills, but it may not boost its price, partly

because these investments aren't fully valued by appraisers. "Everyone is talking about return on investment, it's the first thing

customers want to know," said Jeff Geoghan, a Coldwell Banker realtor in Lancaster, Penn. "But the appraisal industry is not up to speed

on this at all.

Nearly everyone agrees that performing an energy retrofit will make your place more comfortable and save a lot on bills. But if the retrofits

don't add value to the home's price, will homeowners make the improvements, regardless of whether or not the government decides to pick

up half the tab, as they are considering?

Details have yet to be ironed out and passage is not a sure thing, but it's thought a new jobs initiative being pursued by Democrats in

Congress may funnel some $11 billion towards home energy efficiency. It's designed primarily to put contractors back to work, doing things

like adding insulation, caulking windows and doors, and upgrading heating units, air conditioners, hot water heaters and other appliances

But it would also cut down on pollution, and the monthly savings for homeowners could be substantial. If passed, homeowners may be

eligible for a tax credit worth up to $12,000, or half the cost of the retrofits, which ever is lower. If a homeowner spends $24,000 and cuts its

energy use in half - probably the most ambitions reduction that can reasonably be achieved - it would save the average homeowner $100 a

month on their utility bills, said Lane Burt, manager of building energy policy at Natural Resources Defense Council. If they get $12,000

reimbursed from the government, then payback time would be 10 years. But if people spend that much and sell the house before 10 years,

they may be out some money.

Many homeowners would likely opt to spend less, going for the cheapest options that save the most energy. Contractors who perform

energy retrofits say most people spend around $6,000 or $7,000, and the payback time is around 5 years. But assuming the full amount is

spent and the savings are $100 a month, that should result in a substantial increase in home's valuation. After all, an extra $100 a month

one could put towards a mortgage means an increase of $20,000 on the purchase price for a home, according to a calculation done on

a purchase price calculator.

Yet that extra $20,000 does not show up on a home's appraisal. 'It sounds good on paper, but it's just not how the American consumer

makes choices," said Geoghan, the realtor. 'If you're buying a house, and you see a furnace has a 95% efficiency rating, are you really going

to make your decision based on that?" Another realtor agreed. "How much can you really raise the value, maybe few thousand dollars,"

said Laurie Hassey of the Long Reality Company in Tucson, Ariz. "It's still all based on square footage." Part of the problem is that

many real estate appraisers aren't trained to look for energy efficiency upgrades. "There are appraisers out there that have

extremely minimal education," said Leslie Sellers, president of the the industry association the Appraisal Institute.

Sellers said that about a quarter of all appraisers only have the most basic of qualifications - a level known as a "licensed appraiser." Up until 2008, when the standards were tightened, that meant all they needed was a high school diploma and half a semester of course work.

Sellers said the institute is currently running green certification programs that will teach appraisers how to better

value upgrades like efficiency improvements. Sellers also suggested going with a better trained appraiser

- a "certified appraiser" - when getting a home evaluated, even if they cost more money.

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Discussion Points:

1. Allowing Big Media to frame the terms of the discussion.

= Bad Idea

This type of reporting only makes the problem worse.

The “experts” they chose to showcase are a disgrace to

their professions.... Realtors and Appraisers

that I know and are present on this call are much more enlightened.

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ROI, What’s That Got To Do With It?2. Framing the Discussion around

Return On Investment (only)(ROI) = Bad Idea #2

If I want to be comfortable*, or safe*, or healthier*, or proud of my home* or my contribution*, I dont

ask, “What’s my return on my investment? We dont ask the ROI of a flat screen, or granite counters.

Buyers value these because they want them. Value is established by buyer and seller agreeing. It should

be the same for Energy Savers. ROI is not irrelevant but It is only ONE component of value

* comes along with Energy Improvements

**

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People Spend Less....Yes, that has been my

experience for 30 years.

And with reporting like this that trend will continue

Why dont you (CNN) report about the people who are

buying the complete energy packages and getting correct valuation from knowledgable

appraisers and are LOVING the results?

While you’re at it, CNN, you could report on the green jobs, the carbon footprint and the increased tax base and improved communities created

when people are allowed to finance Complete Energy Packages

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“The Improvements Dont Show Up On The Appraisal”

This is true when uneducated Appraisers make it true.

(in the next paragraph, their spokesperson confirms this)

“It’s still based on square footage”

This is so last century. I’m surprised they printed it.

It’s time to demand educated appraisers.

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Green homes face a red light By Les Christie, staff writer March 10, 2010 (CNNMoney.com) --

Lots of people, especially those trying to battle high utility bills, believe in energy-efficient homebuilding.

But there's something holding green technology back: It simply costs more to include it than it adds to resale value Appraisals for newly built green homes do

not fully reflect the cost of green technology, and the lower appraisal values mean buyers often cannot get the full financing they need from banks. That

discourages developers from using green technology, in turn diminishing the market for more green products.

"We can't get lenders to appreciate the value, and if we can't get the values recognized, manufacturers can't justify moving these products forward," said Bill Nolan,

a Florida home building consultant. How that works is illustrated in the case of clients of Michael Chandler, a North Carolina-based green building adviser, who

wanted to build a $400,000 home incorporating many green features.

The house was designed to include passive solar heat, solar hot water, radiant floor, high-performance windows and insulation. But the bank's appraiser told them

that the appraisal would come in for less than the cost to construct. In that case, the buyers would need to come up with a bigger down payment. "Our best

guess is that it will appraise at $380,000," said Chandler. At 90% financing, the bank would put up $342,000, leaving the would-be buyers with a down payment of

$58,000, instead of the $40,000 needed if the house was assessed at the full price. "With 10% down, the clients would have to come up with (an extra) $18,000,"

Chandler said. "They can't do that."

Appraisers feel their hands are tied. "It doesn't do a lot of good to simply add value based on cost," said David Snook, a California-based appraiser who serves

on the real property committee on education for the American Society of Appraisers. "The question is 'How much will the market pay on resale?'" The

appraiser's job is to accurately assess the value of the home. If a feature costs $50,000 to install but only adds $25,000 to the price when the home is resold, the

appraisal cannot reflect the full $50,000 spent. "Appraisers don't make the market, they reflect it," said Jim Amorin, spokesman for the Appraisal Institute.

"Cost does not necessarily equal value. It depends on how the market reacts to the feature."

Not under the influence Also complicating appraisals these days are new rules to prevent loan originators from influencing appraisals. Builders cannot demand

specific appraisers, ones more experienced at evaluating green building. With Chandler's client, the house is in a rural zip code, one where few energy efficient homes have been constructed. The appraiser had little idea of how much building green adds to value. "The appraiser has no experience with green

building," he said. Another problem is that appraisers also rely frequently on foreclosed homes for comparison, especially in places hit hard by defaults. These homes sell at big discounts to the regular market and even bigger discounts to green homes.

Low cost alternatives Because of the appraisal issues, developers often opt for installing only the lowest-cost green features. "Some can be incorporated

without much additional cost," said Curt Jones, a Connecticut-based civil engineer and green building consultant. As he describes the process for green

certification, points are given for a wide variety of factors, some costing a lot, others costing nothing. Angling the home differently, for example, to catch more

rays and help heat the house passively, may not cost the builder a dime. But installing solar panels on the roof definitely will add a lot to the final price.

Ironically, turning green probably does add considerable value -- or will, once green gets more established in individual locales and buyers get more familiar with it.

In Seattle, a hotbed of green-building activity, new homes with green certification sell for 8.5% more per square foot than comparable non-green ones, according to

a report from GreenWorks Realty. They also sell 22% quicker. "As more American homeowners green their homes, there will be more and

more of a premium paid for green homes," said Ben Kaufman, GreenWork's founder. "I can imagine a miles-per-gallon

type sticker on homes for sale and the marketplace will absolutely favor fuel-efficient homes."

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It costs more...

It only costs more than it appraises for if uneducated

appraisers use outdated methods like square

footage and have no way to separate REO data.

Their association leadership is apparently

(finally becoming aware of this and providing training.)

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Appraisers Feel Their Hands Are Tied

Appraisers are actually mandated by recent

legislation to value energy conservation.

Many appraisers just haven’t been updated.

We can help bring them up to date with the latest

regulations.

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How Much Will The Market Pay On Resale?

To an Energy Wise Renovating Investor, selling his recently

completed renovation, this is an irrelevant question because

the buyer and seller have already answered it.

This is part of the reason all of the GreenEarthEquities homes

have appraised for the sales price or higher.

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“Appraisers Have No Experience With Green Building”

Green Building has been ramping up for at least a

decade. It’s time the Appraisal Industry Leadership wakes up. Their Association says they are providing classes....We’ll see.

It is also time for Green Builders and Renovators to reach out to the Appraisers

with helpful information

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Angle On The Lot vs PhotoVoltaic Panels

Wrong on Point #1

and PV is point #27. All the rest of Home Performance that resides between these two extremes is skipped over in this

type of comparison.

This is the type of information we need to share with Appraisers.

Education is the key on all levels: Consumers, Contractors,

Appraisers, Realtors, Banks, & Politicians.

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“MPG” type rating for EnergyThis is being worked on.

A convoluted version of this is called HERS 2 and should arrive this

summer.

A much easier rating would be to publish the bills. A seller proud of his

utility bills could list them in the MLS. A buyer could request them

during due diligence. A seller’s failure to comply would say volumes.

Too simple?

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GEE 4 Page Communique

The GreenEarthEquities brochure is left on the granite counter and gives appraisers the data they

need to justify reasonable Green Building Appraisals

A sample follows:

(All The Pages Work Together)

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Dave RobinsonPrincipal

GreenEarthEquities.Com

Energy Wise Renovation

*$160,000 5,5% fixed rate,

$10,000 down. Includes

principal, interest only. Other

down payments or terms will

require different payments.

Qualifications depend on lender

guidelines. Not all people qualify.

Estimated total payment with

taxes and insurance should be

less than $1,176 per month.

Why Rent? Buyers can own this Clovis School District home for $853

per month*

About GreenEarthEquities

& SmartEnergyHomes At GreenEarthEquities we

acquire distressed properties in prime neighborhoods and

renovate them with 3 goals in mind: The Energy Factor , The

Wow! Factor, and It’s All Done! Buyers enjoy lower utility bills and more comfort, every month in their Low

Maintenance SmartEnergyHome.TM

4 Bedroom, 2 Bath 1188 sq ft.Total Transformation & Custom Kitchen

Built 1971, Re Built 2010

3405 N MiamiFresno, CA 93727

For more information:Dave Robinson559 994 9477

The Right Neighborhood: Clovis Schools. Established neighborhood with tree lined streets. Close to Sierra Vista Mall, Old Town Clovis, Bus Lines,Shopping & Parks. 244 employers and over 10,000 jobs are within a 2.5 miles radius.

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GreenEarthEquities.Com 3405 N Miami

At GreenEarthEquities all we do is Energy Wise Renovation of homes. Each item that goes into our homes must address one of these three objectives:1. Energy Efficiency 2. !Wow! Factor 3. !Done! Factor

This is what we chose to do to meet those objectives on this home:

Energy Efficiency1. !Dual pane windows throughout !!2. Motion Sensor & Photo Sensor Lighting Controls3. Energy Saving Lighting throughout4. Dual Zoned High SEER Mini Split Heat Pump 5. New Engineered Duct System (ACCA Manual D) 6. !Shell Sealing of cracks and holes in the attic at the ceiling level.7. !Attic insulation to R-50+ : far above Energy Star Standards for brand new homes.8. Energy Star Appliances.9. !Gas stove and gas option for the dryer. !10. !Dual pane and foam core front entry door11. !Upgraded ceiling fans in every room

Wow! Factor1. New Cabinets throughout in Kitchen and both baths. Real Wood throughout, 2. !Matching Granite Counters in Kitchen and both baths.3. !New Hood Fan Microwave4. !New Gas Stove and Oven5. !New Dishwasher!6. !New Disposal7. !New Deep Stainless Steel Sink with premium faucet and spray8. !Tile Floors in Kitchen and Baths with Custom Tile showers9. 9. !Designer 2 and three tone painted interior10. !Crown molding and stepped door Trim11. !Designer 3 tone paint exterior with New Dash over sculptured trim12. !All ceilings have been replaced with new texture and paint. 13. New Stucco and Dash Coat for Brand New Look.

The “Done” Factor !1. !New front and back lawn2. !Automatic sprinklers front and back3. !Finished Garage, Drywall and painted4. !Sewer line recently serviced and encroaching tree roots removed. 5. Brand new 30 year roof with warrantee6. Garage Door with new automatic opener7. !Brand New water heater8. New carpet 2 grades up from FHA standard, normal in renovation, with 6 lb pad. (4 lb is normal) 9. !New receptacles, new switches and covers10. !New six panel doors and new hardware.11. !New light fixtures12. New Fencing with room for RV or Trailer storage.13. New Covered & Tiled patio for Outdoor Living.

We value your opinion. How do you think we did toward meeting our objectives?What would be one or two things that you would change to make this home more desirable?

Thank You

Dave Robinson, Rogelio Covarrubius, Jennifer MartinPrincipal" " Supervisor" " Real Estate Advisor

Seller Will Pay 50% of

Utility Bills For First Year!

It#s Your

Choice:

Rent This One Across the Street for $1,050 per month

Or Own This One For About $100 more

Everything Is Old

Everything is New

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GreenEarthEquities.Com Projects Done & In the Pipeline

REALTORS: We plan that many homes will be sold before they reach MLS. All homes will be offered to the group of Preferred Realtors for 7-14 days before listing in MLS. For details and to be alerted of new projects as they become available contact Jennifer Martin 259 8153

Note: Owner Will Consider Lease Option Or Owner Carry On This Property

We are also have a program to give preference to Veterans.

Address Details ListPrice

Completion Target

#15741 E Bernadine

1574 sf 3-2 LR & Fam 1959Corner Lot, RV access, Wow! Done! And Energy Packages

$185,000 Jan 15, 2009

#23328 N Purdue

1164 sf 4-2 50 year roof, covered patio, Wow! Done! And Energy Packages

$143,500 Feb 10, 2009

#35664 E Bernadine

1404 sf 3-2 LR & Fam 1962 pool Drive Thru Garage, Wow! Done! And Energy Packages

$185,000 Feb 20, 2009

#43332 N Ezie

1362 4-2 LR & Dining 1960 Possible RV parking Wow! Done! And Energy Packages

$165,000 July 1, 2009

#54404 N Eddy

1348 sf 4-2 Great Room, RV Access, Huge Corner Lot, Wow! Done & Energy Packages

$169,500 Aug 4, 2009

#65967 E Fedora

1188 sf 3-2 1971 Great Room, Custom Kitchen, Wow!, Done! & Energy Packages Possible RV

$160,000 Nov 1, 2009

#7145 Gettysburg

1171 sf 3-2 1971 Great Room, Custom Kitchen, Wow! Done! And Energy Packages, Clovis Schools

$170,000 Sept 15, 2009

#83915 E Townsend

Apx 1670 sf 4-2 1948 LR & Formal Dining, New Master Suite, Detached Garage Quiet Neighborhood.

$135,000 Feb, 2010

#93405 N Miami

1157 sf. 4-2 1971 Custom Kitchen, Wow!, Done, & Energy PackagesClovis Schools. New Roof, & AC

$160,000

#105868 E Andrews

1171 sf 3-2 1959 Great Room, Custom Kitchen, Wow! Done! And Energy Packages, Clovis Schools

$160,000 Mar 15, 2009

SOLD!

SOLD!

SOLD!

Pending

SOLD!

SOLD!

SOLD!

Feb 14

Available Now!

SOLD!

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GreenEarthEquities.Com Projects Done &

In the Pipeline

7

5

6

43

12

Tarpey

North

Cluster

Tarpey

South

Cluster

9

10

ComparedTo the

single sheet used by most

Realtors for Open

Houses, this format is a lot more helpful to

buyers and Appraisers.

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Also Leave CMA Reports

with annotations.

The last 2 “Solds” are

GEE properties #1 & 2 on the map.

These sales make the next

properties easier to value

similarly

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Collaboration Is The KeyCalifornia Building Performance

Contractors Association (CBPCA)

Build It Green, (BIG)

Building Performance Institute (BPI)

Green Earth Equities (GEE)

And others have existing classes and will work with Appraisal

groups to customize training for appraisers on evaluating Green and

Energy Saving Renovations.

Working together we can achieve our 2030 and 2050 Energy Goals.