PowerPoint Presentation

High Performance Homes Getting our Unfair Share- Something to Consider

Presented By:Kerry Langley Creator High Performance LendingSustainable / Certified Energy Efficient Home EvangelistNumber Crunchin Visionary

High Performance Homes Getting our Unfair ShareSo, since we know that building science really works and since we know that prospective home buyers want better built / attractive/ comfortable / safe / energy efficient homes what is the challenge?The message has been delivered by a bunch of green zealots, typically engineers, in a language that most prospective home buyers dont understand*

Industry stakeholders havent developed a true value proposition that impacts normal people*

We havent given the buyers an emotional reason to buy high performance homes we all need something to brag about*

*Shelton Insights Martha Wampler February 12,2014The bottom line we need a simple to understand value proposition that ties it all together for all prospective home buyers

We need a brand that tells the whole storyThink about a universal concept like gas mileage and commuting costs Consider Hybrid vs. Conventional Autos(Six Year Ownership Period shown)Ford Fusion SEFord Fusion Hybrid SEPrice$22,760.00$27,105.00Monthly Payment$321.00$395.00Miles Monthly20002000MPG2847Monthly Cost of Gasoline (@ $3.50/gal)$250.00$148.94Total Cost of Ownership (payments & fuel)$41,112.00$39,163.68Savings of Owning Hybrid ($)$1,948.32Savings of Owning Hybrid (%)4.74%You ever met anyone that brags about driving a 1999 Buick to work each day when it gets 10 MPG and they drop a $100 bill in the tank each week? Find someone that drives a new Ford Fusion that gets 47 miles per gallon I bet you cant shut them upConsider these well respected programs

Do the majority of prospective home buyers, including folks from all walks of life and all socio-economic groups, know how owning a home with one of these certifications will impact their entire life?

So, six years ago, at the request of Ted Cater at the EarthCraft House program, I started working on an answer to the question

How do we effectively communicate the true holistic value of a high performance home?

My conclusion the universal language money!!!

Whats it gonna cost? (Is it affordable)

Is it valuable in the marketplace? (Is it a good investment)

And, is it a smart decision? (that makes me look good)

Being a numbers guy I took these specific questions and developed a software program to address them

Its called High Performance Lending (also known as TCO an acronym for Total Cost of Ownership) and I like to say that it is a sister system to the HERS Index.

HERS is based on Building Science

TCO is based on Financial Science

When you combine the two, we end up with a certification program we call

So now, when a prospective homebuyer sees the Best Cost Less Certification they will know that they are buying one of the best built homes in the marketplace,And that their financing package is the best it can be!!Thanks to Pat Stevenson & John Ruehl at David Weekley in Atlanta, I have a developed a case study to share with you

Comparing the HERS 57 home build by David Weekley to a standard, code built home with the same listing price First, lets look at the Estimate Energy Savings

Code Built CompetitorDavid Weekley HERS 57HERS Rating10057Estimated Initial Utility Bill$297.80$169.75Annual Energy Inflation (%)4.93%4.93%Energy Savings (10 Yrs)$19,264.39Energy Savings (15 Yrs)$32,983.86Now, lets have my software analyze all 52,000 available mortgage options for the prospective buyer to look see if we can identify any Financial Savings (Illustrations based on Ownership Years 1-15)Code Built CompetitorDavid Weekley HERS 57 30 YrDavid Weekley HERS 57 25 YrPurchase Price$370,000.00$370,000.00$370,000.00Loan Amount (90%)$333,000.00$333,000.00$333,000.00Interest Rate4.375%4.375%4.375%Loan Term30 Yrs30 Yrs25 YrsPayment (PITI + PMI)$1,812.47$1,723.67$1,888.43Financial Savings Compared to Traditional Financing*$4,824.97$22,812.18* Financial Savings based on before tax reduced interest and mortgage insurance costsAnd finally combining the Energy Savings with the Financial Savings we get the end result two strategies to choose from where we can show our buyers a significant reduction in their Total Cost Of Ownership(Illustrations based on Ownership Years 1-15)Code Built CompetitorDavid Weekley HERS 57 30 YrDavid Weekley HERS 57 25 YrPurchase Price$370,000.00$370,000.00$370,000.00Loan Amount (90%)$333,000.00$333,000.00$333,000.00Interest Rate4.375%4.375%4.375%Loan Term30 Yrs30 Yrs25 YrsPayment (PITI + PMI)$1,812.47$1,723.67$1,888.43Payment + Energy$2,110.27$1,893.42$2,058.18Financial Savings vs. Traditional $4,824.97$22,812.18Add Energy Savings vs. Code$32,983.86$32,983.86Total Savings ($)$37,808.83$55,795.78Total Savings (%)10.73%13.72%* Financial Savings based on before tax reduced interest and mortgage insurance costs

Our value added proposition as a lender partner for the Atlanta team @ David Weekley Homes is to position ourselves as an extension of your sales/marketing efforts. We only offer our High Performance Lending / Best Cost Less program to builders that participate in a 3rd party energy efficiency certification program like you do and our pledge to to share custom prepared Best Cost Less savings analysis with every prospective homebuyer.

Question contact Kerry M. Langley cell (770) 365-7769kerry@teeceeo.com