The words "green" and "sustainable" are thrown around so much they are almost impossible to define. Marketing concerns about "greenwashing" is another related topic. In real estate marketing a new related term has evolved: "high-performance home" (HPH). We thought we would take a little time to break down what high-performance means in marketing a home.
Let's start with what every homeowner may have invested in to make their home more comfortable and healthy to live in; these improvements are likely to reduce not only their operating costs, but also their environmental impact. Homeowners that have invested in a NEST thermostat, or have had an energy assessment and made improvements to the building envelop with air sealing and insulation improvements would be examples of homes with high-performance features. Other high-performance features could be Energy Star rated appliances. Heating and cooling plants that are are Energy Star rated would certainly be a high-performance feature. Some homeowners have made the substantial investment in a geothermal heating/cooling system, or more accurately called a ground source heat pump (GSHP). More and more we are seeing that homeowners have made investments in ductless minisplits or air source heat pumps (ccASHP) that not only may be used for air conditioning in the summer but may also be the primary or sole source for heating in the winter as well.
There are also multiple options for high-performance water heating options as well. Tankless systems which don't need to heat 40+ gallons of water are one example. Solar thermal systems have been around for many years. Heat pump technology is one of the newest features for water heaters. Many of these features that improve energy efficiency also have meaningful incentives offered by utility programs like Mass Save or may apply for generous tax incentives at the state and federal levels,
In Massachusetts we have nearly 100,000 home owners that have installed solar photovoltaic (PV) panels on their land or rooftop. These systems generate electricity for the homeowner using the sun's energy - photons. Given that utility costs are so high here in the North East, it is not unusual to hear that a homeowners inital investment might be paid back in five to six years.
All of these could be considered high-performance features. Even LED light bulbs which use 70-90% less energy than traditional incandescent lamps are a high-performance feature in a home. Homes that have a number of high-performance features may be able to obtain a new nationally recognized third-party certified Pearl Certification.
In Massachusetts new construction homes, particulalry in the 250+ communities that have voluntarily adopted the stretch energy code, perform significantly better than homes that have not been updated. How do we know this? Energy efficiency experts can measure the performance of homes several different ways. Duct blasting tests, blower door tests and infra red photography all can reveal the energy performance of a new or existing home. These performance tests can be used to create home performance metrics. Two home energy scores, or energy asset ratings, are being used in the market today. New construction may be rated with a HERS score and the U.S. DOE has produced a HES score that is used in Connecticut with every home energy assessment done.
If that's not enough to spin your head, now let's add in homes with other recognized third-party certifications like the U.S. Green Building Council's (USGBC) Leadership in Energy and Environmental Design (LEED) program, or the National Association of Home Builders (NAHB) National Green Building Standard (NGBS). Had enough with the acronyms? There is also the Passive House certification which can be administered in the U.S. by PHIUS or internationally through iPHA (and, yes, there is lots of green building drama going on between the U.S. and international standards). Who knew this green building stuff was so complicated?
Then there are builders that have built a few LEED certified homes, but they don't want to invest the time and money to verify their work on their next project. Is a home built to "LEED standards" as reliable than one that has gone through a full and rigorous certification process? In this instance, the buyer may believe that the home is worth more, but you will be hard pressed to convince an appraiser or a lender of the homes additional contributory value.
There are also excellent builders that are producing net zero energy (NZE) homes without green certifications, but they may be able to reach the holy grail of HERS scores: 0 (or lower!).
So what is the definition of a high-performance home? Homes with very low HERS scores certainly fit into that definition. Homes that have gone through rigorous third party certifications like LEED or NGBS which not only score the energy efficiency features, but also have ways of measuring other important sustainable building best practices like control of storm water runoff, water efficiency, and construction waste to name a few are high-performance homes.
It's a lot to take in which is why the REthink39 Group at LAER Realty Partners offers real estate professionals that can help guide home buyers, their agents, appraisers and lenders through the process. Like the specialized builders that are building beyond code, you need a specialized real estate agent that can guide you through the process of the new technologies and incentives available. We are in the midst of a building science revolution. Shouldn't you expect a real estate agent knowledgeable and competent in this part of the market? REthink39 believes it's time to change what we expect from a home.
