In an economy that’s made money a little tighter for everyone, are green improvements really necessary, which ones actually add value to a home, and more importantly, how much value? The answers to these questions are not subjective, to the contrary; the U.S. Department of Energy (DOE) is dictating that homeowners and by default remodelers take note of the International Energy Conservation Code (IECC) and the impending 2012 residential changes to that code because it is about to have a substantial impact on the value of their investment. There is no denying the importance of doing all we can to impact our environment in a positive way. So why aren’t more of us doing it? My answer; we are all in the business of making money. That being said, my question is; can we make money with green remodel projects and if so, how? If green remodeling does not benefit the bottom-line for the consumer and the remodeler, then why bother? A home is an investment. The value of that investment is determined by the housing market. The housing market is stimulated by the value of a dollar. The value of a dollar is dictated by the government. The government implements codes and regulations within the building industry to reduce energy consumption and increase energy efficiency. Energy efficiency equates to green remodeling. Green remodeling lowers operating costs. Lower operating costs means savings and that savings makes a home more desirable to potential buyers thereby increasing the value of a home as an investment. If homeowners undertaking remodeling projects, to increase the value of their home, understand the IECC and its potential impact on the housing market; it stands to reason that making green or energy efficient changes at the same time would be a wise choice. It is easy to see the advantages of green remodeling for consumers, but how does it profit remodelers? Armed with the facts and figures, selling green becomes much easier, the hardest part for remodelers will be helping homeowners decide just how “green” they want to be. They don’t have to do everything, but anything they choose to do is a good investment in one way or another.

1. THE LEADING EDGE
Green Remodeling
By Larissa MichaeL, cGa
How new energy codes could affect every remodeler
T
photos courtesy of gryphon builders
here is no denying the importance of doing
all we can to impact our environment in
a positive way. So why aren’t more of us
doing it?
My answer: We are all in the business of mak-
ing money. That being said, can we make money
with green remodeling projects and if so, how? If
green remodeling does not benefit the bottom-
line for the consumer and the remodeler, then
why bother?
A home is an investment. The value of that
investment is determined by the housing market.
Energy efficiency equates to lower operating
costs. Lower operating costs means savings and
that savings makes a home more desirable to
potential buyers, thereby increasing the value of
a home as an investment.
As a result, despite the sluggish economy and
anxiety about price it appears “savvy” homeown-
ers that are aware of the benefits of sustainable
building solutions are willing to pay for the smart
ones. Who are the “savvy” homeowners?
Savvy homeowners are the ones who know how
to protect their investment. Whether purchasing
or improving a home, people should realize they
Does The IeCC really have any TeeTh? the New Buildings Institute and the American
are making an investment with the objective of
This is the technical and boring part, but bear Institute of Architects voted by an over whelm-
making a profit — at some point.
with me. Typically the IECC is similar to the ing majority to pass a series of energy-saving
Even so, there is a lack of understanding about
energy related components of the International changes to the IECC.
how environmentally friendly improvements in
Residential Code, though the two are not always Directly effecting remodelers, one of the 2012
a home are affecting today’s housing market. In
identical. At present each state has its own code changes is the elimination of a former dupli-
an economy that’s made money a little tighter for
energy code requirements, which is often based cation of model energy codes between the IECC
everyone, are green improvements really neces-
on some version of the IECC. Remodelers have and the IRC, streamlining the process into a
sary, which ones actually add value to a home,
the option to choose which code to comply with, singular, efficient path to residential compliance.
and more importantly, how much value?
however, this is about to change. An increasing number of cities in more than 40
The answers to these questions are not subjec-
Despite the objections of the NAHB, in states are already using the IECC to set baseline
tive. To the contrary, the U.S. Department of En-
October of 2010, building bode officials from energy efficiency standards for residential con-
ergy is dictating that homeowners and by default
across the nation in a collaborative effort with struction because it is the only residential energy
remodelers take note of the International Energy
code recognized in federal law and its adoption is
Conservation Code (IECC) and the impending
linked to states’ receipt of State Energy Program
2012 residential changes to that code because it For more on green remodeling,
visit www.HousingZone.com. funding under the $800 billion stimulus package.
is about to have a substantial impact on the value
Furthermore, there are a growing number of
of their investment.
18 Professional Remodeler www.housingZone.com NovEmbEr 2011

2. THERE’S G OOD ENOUG H.
Green Remodeling AND THEN THERE’S MA RVIN.
cities, counties and states passing ordinances “eCo-frIenDly homes are
and bills making home energy rating manda-
tory (see sidebar for a few examples). sellIng fasTer anD for
There is even talk of a national mandate. H.R. more money Than TraDITIonal
2454 was a proposed bill mandating energy
audits and labeling before any home was sold,
properTIes.”
directly impacting the seller or purchaser. The
bill passed in the House of Representatives in
2009 but stalled in the Senate because it was
viewed as too stringent.
The energy audit mandate has now been
reintroduced in bill S. 1733. Predictions are
it will pass this time because of the IECC and
the 30 percent Energy Savings Goal changes
to be enacted in 2012. This isn’t going away;
the “powers that be” cannot agree on how and
where to build new energy plants to increase
supply so this leaves no option but to decrease
consumption.
eDuCaTIng ClIenTs
One of the first things homeowners want to
know about any home improvement is, will it
Why not a window that’s
be a good investment? They understand that
a typical remodel project will add 65 to 85 per-
simply good enough?
cent of its cost to their home’s value and when Operating cost savings aside, research
it comes time to sell the updates can make shows that across the nation eco-friendly We’ll give you 10 good reasons.
their home more desirable to potential buyers. homes are selling faster and for more money
Conversely, clients are skeptical of green than traditional properties. The numbers
renovation and though they may be interested, vary, but in general they command 8 to 30 Visit Marvin.com/10 to see
they tend to have some antiquated ideas about percent more than their counterparts. In 10 things that make Marvin
what it involves and whether or not it is a 2010, certified green homes spent an average
a better value. Choose the
justifiable expense. of 97 days on the market, compared with 123
one most valuable to you and
Nearly two-thirds of homeowners say they will for traditionally remodeled homes.
Education is the key, for both the client and
get a chance to see them in
invest in renovation projects this year, accord-
ing to the latest American Express Spending & the remodeler. Remodeling companies that action at our factory in Warroad.
Saving Tracker. understand how the housing market is being
Even though homeowners’ confidence in the influenced by the IECC and are familiar with
real estate market has increased compared to the vast amount of products, systems and
last year, only 43 percent believe they would get design ideas related to sustainable building
the asking price for their home if it was on the are ahead of the curve and can gobble up
market today. market share.
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®Registered trademark of Marvin Windows and Doors.
1-800-241-9450
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3. THE LEADING EDGE
Green Remodeling
loCal auThorITIes pushIng
energy effICIenCy
Many states and local municipalities have al-
ready implemented stringent energy codes.
Here are just a few examples:
• All new residential single-family units
built within the City of Santa Fe are re-
quired to post a confirmed HERS rating.
• In Texas the Austin City Council
passed an ordinance in 2008 designed to
provide efficiency information to home
buyers, apartment renters and building
owners to reinforce the market value of
energy efficiency. Sellers of single-family
homes 10 years old or older must disclose
the results of a required energy audit to
potential homebuyers.
• In Montgomery County Maryland,
home energy audits are required to be con-
You know something your competition doesn’t. ducted in conjunction with a home inspec-
“There are a growIng
Subsequently, you appear more knowledgeable tion when selling a home.
and trustworthy to a homeowner. This narrows number of (munICIpalITIes) • Oregon’s governor, Ted Kulongoski,
the playing field. Armed with the facts and fig- passIng orDInanCes anD bIlls supported an ordinance requiring any
ures, selling green becomes much easier. owner selling or renting a home or com-
The hardest part for remodelers will be helping
makIng home energy raTIng mercial building in the state to obtain a
homeowners decide just how “green” they want manDaTory.” certificate disclosing the property’s en-
to be. They don’t have to do everything, but ergy use and greenhouse gas emissions.
anything they choose to do is a good investment The mandate, part of his climate change
in one way or another. defined because everyone has a different set of agenda in 2009, took effect this year for
Knowing all this doesn’t mean you’ll be a suc- values, but it can be a straightforward process. new and existing homes and in 2012 for
cess if you weren’t one before. It’s simply another It requires homework, thinking and training commercial buildings.
tool in your toolbox. because in the end, green is just a term for best
The process of selling is not always about building practices.
comparing two price tags. More often than not it This year, consumers are spending smart and would you lose revenue now, you could poten-
comes down to expertise. Industry profession- looking for a greater ROI when it comes to home tially lose the future revenue of a returning client
als demonstrate a dedication to being the best at renovation, this is the most compelling way to because “you didn’t tell them.”
what they do by obtaining designations, certifica- sell green because right now it makes more You are no longer just a remodeler; you are an
tions and a commitment to continuing education. sense to invest in your home than it does an IRA. investment advisor too.
Once you have established yourself as the The adoption of the IECC 2012 code changes
expert, substantial knowledge of industry trends will at some point force homeowners to incorpo- Larissa Michael, CGA, handles the advertis-
and products affords you the ability to give your rate green into their remodel projects or take a ing, marketing and public relations for Gryphon
client options. Consumers need to know what loss on their investment. Builders, an award-winning remodeler and custom
their choices are and which ones will benefit You would be remiss not to inform your clients builder in Houston, and is active in the GHBA
them the most. Green remodeling is not easily of this important information because not only Remodelors Council.
20 Professional Remodeler www.housingZone.com NovEmbEr 2011