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High Performance Homes … Getting our Unfair Share - Something to Consider …. Presented By: Kerry Langley – Creator – High P erformance Lending Sustainable / Certified Energy Efficient Home Evangelist “Number Crunchin” Visionary. High Performance Homes … Getting our Unfair Share.
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High Performance Homes … Getting our Unfair Share- Something to Consider …
Presented By: Kerry Langley – Creator – High Performance LendingSustainable / Certified Energy Efficient Home Evangelist“Number Crunchin” Visionary High Performance Homes … Getting our Unfair Share
So, 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 don’t understand* • Industry stakeholders haven’t developed a true value proposition that impacts “normal” people* • We haven’t given the buyers an emotional reason to buy high performance homes … we all need something to “brag” about* *Shelton Insights … Martha Wampler … February 12,2014
The 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 story
Think about a universal concept like gas mileage and commuting costs …Consider Hybrid vs. Conventional Autos(Six Year Ownership Period shown) 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 can’t shut them up
Consider 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!!! What’s 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 … It’s 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 Ruehlat 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 …
Now, 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) * Financial Savings based on before tax reduced interest and mortgage insurance costs
And 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) * 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