Archive for the ‘Energy Efficiency and Mortgage Risk’ Category

See my blog for NAR’s Appraisal Insight on The Cost Data Addendum for High Performance Homes

Thursday, October 24th, 2013

Check out my blog on NAR’s Appraisal Insight on the value for appraisers of builders identifying the incremental costs for a particular residential project going from code to high performance

NAR approves SEEC’s new four-part series as alternative credit towards its national Green designation

Friday, September 13th, 2013

WA and OR real estate brokers until recently were stuck between a rock and a hard place when it came to choosing which courses to take to further their green building education.  On the one hand, they could select from some excellent local courses that either provided no designation or one that had little if no recognition nationally.  Or, they could take one of the two national designations: NAR’s Green or EcoBroker and either skip the local education or take it in addition.  With NAR’s Green REsource Council accepting  SEEC’s four-part series (check out our Green Classes page) as alternative credit towards its Green designation, brokers can stay on top with excellent local green continuing education, while earning a national and major designation.

A new green course for WA & OR real estate brokers: Energy Performance Scores – Valuing Energy Improvements

Monday, April 15th, 2013

Announcing the first offering of a new green course for real estate brokers: ”Energy Performance Scores – Valuing Energy Improvements” May 1st in Olympia, WA of our new four-part green broker series.  Each course is designed as a stand-alone module and, when taken as a series will progress attendees’  knowledge and expertise in green homes.  Thanks to our sponsors Thurston Energy and Olympia Federal Savings, the first 12 to register and pay the nominal fee $35 for this class, get to bring a COLLEAGUE FOR FREE.  In return for our sponsors’ commitment, SEEC will be offering these courses regardless of class size.  This is a 3.5 continuing education course for brokers, but is highly suitable for remodelers, home inspectors, mortgage professionals and even homeowners wishing to understand more about the value of home energy efficiency improvements.

Series Sponsored by: OFS logo green stackedThurston Energy Logo Altered

Study shows energy efficient home owners less likely to default on mortgage

Tuesday, March 19th, 2013

A study was released today by the University of North Carolina and the Institute for Market Transformation that finally assesses the linkages between residential energy efficiency and mortgage risks.  The study Home Energy Efficiency and Mortgage Risks Report found that the risk of mortgage default by home ownes is one-third lower for ENERGY STAR labeled homes (typically a minimum 15% improvement in performance over a code built home of the same year).  With HERS Index Scores even lower than 85 the risk level further decreased.

Researchers used a sample of 71,000 mortgage loans, originated during 2002-2012, from 38 states and the District of Columbia, all derived from CoreLogic’s mortgage data base.  To get statistically pure results they controlled for house size; age of the house; neighborhood income levels; house values relative to the area median; local unemployment rates; borrowers’ credit scores; loan-to-value ratios; electricity costs; and even local weather conditions.

And in case you are wondering, the average sale price of both the energy-efficient homes and the others was approximately $220,000, removing the possibility that the energy-efficient properties were high-end houses purchased by the 1%.