The real estate appraiser may have another criterion on his or her list to evaluate when assessing a property. The new criterion is something near and dear to Austin developers, construction firms, and city governments: the green building thing.
At the end of June, 2008, a number of real estate appraisers from all over the US convened in Austin to learn how environmentally conscious building materials can change the value of a property. The week long seminar was run by the Appraisal Institute out of Chicago. It focused on green building in the commercial property field and there are plans in the making to hold another that focuses on residential properties in the near future.
The seminar examined sustainable elements in building and where to set the bar for putting a value on green building elements with few guidelines to go by. As green building becomes more popular and even mandated in some regions, a new set of criteria and valuation has to be development. As Jim Amorin, president-elect of the Austin regional Appraisal Institute stated, “we have been actively developing coursework to help our members understand how green is going to impact the properties we are appraising.”
Appraisers will have to start looking at such features as highly efficient heating and air conditioning systems, alternate uses of energy, water savings, and energy saving lighting and fixtures as factors that will effect the value of a property. But there remain questions for future consideration - how will the investment in green building pay off in the long run, how to create a reliable way to value green buildings with so little data to go on, and what green building elements add the most value to a building? Questions that will need answers soon.
Everywhere you look, people are talking about going “green,” but what exactly does this mean? As the environmentally friendly building trend grows, more builders are offering “green” options to their customers. As many homeowners are unsure what they need to make their homes more energy efficient, groups such as Austin Energy have offered tips as to what should be used or added to a home when building or remodeling to meet these green standards.
When building a new home, plans for going green start with things as basic as the positioning of the structure. An east-west axis will reduce energy usage, on its own. Choice of materials and features also plays a role in the energy rating of a home. Use spray foam insulation, rather than standard fiberglass and choose energy efficient doors and windows.
When purchasing a cooling system for a new home or as a replacement, be sure that the model is energy efficient. Lighting should be fluorescent, particularly in high use areas. Add ceiling fans to common rooms, bedrooms, baths and kitchens. Choose a light color for the exterior of the home and have interior rooms painted colors that make the best use of natural light. Experts also suggest that the structure of the home be built from sustainable materials to further help the environment.
Though many of these building choices are more expensive initially, the energy savings and environmental impact is well worth the expense. Even if going completely green is not financially possible, even the smallest improvements will be a help to your personal energy usage and to the environment.
Trammel Crow Co., a well-known developer of industrial and office space in urban areas, has been active in Austin for some time now. However, it has not had the public presence other companies have garnered and has instead worked in the background, hoping to one day obtain the project and the reputation it so justly deserves.
That waiting recently paid off when Trammel Crow won the city bid, with partner Constructive Ventures, to build the Thomas Green Water Treatment Plan. The project is one that many vied for, as it is six acres and four city-blocks, and fronts Lady Bird Lake in southern downtown Austin. City officials with executives from both Trammel Crow and Constructive Ventures are currently finalizing the details of the plan - something that could take up to a year.
While that is being done, Trammel Crow is continuing to move forward and expand its presence even more in Austin. It currently has $224 million of real estate under development in the city. The Shore, Trammel Crow’s 192-unit condo on Lady Bird Lake, is due to open in a few months. Similarly, 64,000 square feet of retail and commercial space, along with residential buildings will soon be complete. And Lakeline Mall, a 272,000 square-foot project, is scheduled to be finished by January 2009. In addition to those, there are many more projects in the development or proposal stages.
Clearly, Trammel Crow is a force that will become even more dominant in Austin in the upcoming months. It has proven repeatedly that it can and will develop quality projects, and that it is prepared to tackle both large and smaller plans. And with the acquisition of the Thomas Green Water Treatment Plan it has shown the better known companies that it too can compete . . . and win.
The mortgage crisis and housing slump that has taken the US by storm had created serious financial losses for the Fannie Mae Corporation, as well as the Freddie Mac program. These losses are not only detrimental for the companies themselves, but also for those in the market for mortgages, as the costs for using these programs will increase significantly to help make up for the losses.
Reports from the second quarter that were recently released showed an increase in revenue for Fannie Mae, but the expenses incurred swallowed them up, and then some. There was a loss expected by analysts, however the $2.3 billion in losses that was incurred was many times greater than anyone could have anticipated. Freddie Mac’s projected loss was much less than the actual damage, as well.
These programs are in place to buy higher risk mortgages from lenders and resell them to investors, guaranteeing the repayment of the loans. In order to keep the companies operational, the federal government is working on an emergency plan to add billions of dollars in funding to the companies. The funding has been passed, but has not yet been enacted.
As these two institutions are connected with more than half of the open mortgages in the country, keeping them operational is crucial. The companies plan to decrease operating costs over the coming months, hoping that this, combined with the federal help will help them to keep their heads above water.
After spending 12 years making many major upgrades and improvements to their Allandale residence, Steve Mierl and his wife Carla have decided to sell their home and relocate. This decision gives one lucky homebuyer the chance to purchase a beautiful home in a prime neighborhood, with the added bonus of knowing that their purchase will save them money on energy bills and give back to the planet.
The family has added many features to the circa 1959 home since they moved in back in 1996, starting with the addition of a family room. One of the most unique features of the room is the vaulted ceiling with beams recycled from a train depot in the small town of Agua Dulce, more than 40 years ago. There are many other wood features throughout the home, as well. There aesthetic improvements were only the beginning of the features they have added over the years.
As a garage, game room and utility room were added, the Mierls kept energy efficiency at the forefront of their building plans. Using features such as fiberglass insulation, ceiling fans, and cross-ventilation systems, they have seen major decreases in the amount of money spent on electricity each month. Even with more than a thousand square feet in additions to the home, energy bills have not increased at all.
In addition to the physical features of the home, the location gives buyers the opportunity to keep a greener lifestyle. There are shops and parks within walking distance and the home is located in one of the safest communities in Austin, making car trips for shopping minimal.
Austin residents Bruce Weatherford and Adam Toguchi have recently completed a major remodeling project to their home and have consequently received Austin’s highest possible rating for energy efficiency. After expanding the existing structure and adding a second floor, their home has gone from 850 square feet to 1850 square feet, more than doubling in size.
The pair chose to use the suggestions of Austin Energy when completing their remodel and added as many energy efficient and sustainable features as possible in both the old and new sections of the home. Though the cost of the remodel was higher, they have already seen the benefits in their utility bills, which have not changed even with more than doubling the size of their home.
Included in the upgrades that they purchased, Weatherford and Toguchi chose to use foam spray insulation, which has been a major factor in the reduced energy costs. Their designer found ways to include a large number of windows, and even a glass wall, while maintaining a high rate of efficiency. All involved in the project hope that the aesthetics of the home prove to would-be remodelers that choosing to use green resources can lead to a beautiful, as well as efficient home.
Those who are interested in finding out more about what it takes to have a home with a high energy rating can visit the Austin Energy website for more information on the project. Information on rebate plans and free materials is also available on the site.
With a highly competitive housing market, sellers are sometimes at a loss as to how to get their home to sell. As the “green initiative” has take the country by storm, playing up the energy efficiency and other green features of a home is a great way to draw more attention to a home that is on the market and increase the chance of selling it at an acceptable price.
Buyers are advised by many professionals to consider the energy efficiency of a home before purchasing, as the cost of energy has been steadily rising in the past years. Savvy sellers are making improvements to their homes prior to putting them on the market, which in turn makes them more appealing to buyers who are energy conscious.
Among the improvements that should be made prior to selling a home is replacing old toilets with energy efficient models. Also, programmable thermostats, the addition of ceiling fans in many rooms, and adding insulation are also suggested by the experts. Use drought resistant plants outside to further increase the visual appeal of the home. There are a number of other improvements that can be made, with the help of contractors that specialize in improving energy efficiency.
If cost is a factor, Austin offers homeowners free upgrades for changing out toilets and other features and also gives rebates for purchasing items from their approved lists. Though there may be a few expenses in the lead up to placing your home on the market, selling at a higher price and a potentially faster rate will be worth the money spent.
Two Kenedy County wind plants will go on, as planned, thanks to a federal judge’s dismissal of a case against them. Judge Lee Yeakal of the U.S. District Court in Austin announced on August 4th that he would be dismissing the case that was to be heard later in the month. It is unknown as yet what the reasoning behind the dismissal was, but there are no approvals needed to place such plants on private land, as was the situation in this case.
The Coastal Habitat Alliance had filed the suit against PPM Energy and Texas Wind, as they felt that the companies had not done enough research and investigation as to the effects of the plants on local wildlife habitats. This suit was their second attempt to halt the building of these two plants. The first was also dismissed by a judge, but will be appealed. The alliance has not yet decided as to whether they will appeal this dismissal, as well, as the judge has yet to release a statement on his reasoning.
According to the investment group responsible for the project, Australian based Babcock & Brown, their projects are intended to help the environment by providing renewable energy and to minimize damage to habitats and natural resources. The first phase of these wind farms is under construction and slated to be completed by the end of the year, while future additional turbines will be added. The companies involved feel that they have been extremely mindful of their project’s impact and have taken necessary steps to protect the local environment.
The first week in August proved once again that the real estate market is still fully involved in a steady decline, according to the Realty Times. When compared to the same week’s results from 2007, there were double digit percentage drops in nearly every measurable category. New listings on the market were down nearly 14 percent, while pending properties dropped 17.5 percent and sold properties declined by almost 22 percent. The average price of a sold home was the only place where there was improvement, as the price increased just over 17 percent.
The monthly results for July showed similar drops by comparison to last year. In July of 2008, there were more than seven percent less new listings than the previous year. Pending sales were down more than 21 percent, while there were nearly 25 percent less sold properties in July of 2008. Pricing of listed and sold homes rose somewhat over last year, with new listings priced nearly nine percent higher and sold prices showed a tiny increase of .08 percent over 2007’s July average.
Along with these results, it has been reported that Texas has received the number one ranking in the country for business environment. The state beat out other Southern states, such as North Carolina, Georgia and Florida for this honor. With this positive attention, it can only be hoped that the favorable business climate will help to improve the struggling real estate market in the state, in the very near future.
After living for years in an energy efficient log cabin in Alaska, Jay Gammell enjoyed the benefits of green living enough to have his new Austin home built to many of the specifications in the Austin Energy initiative. After living in the home for over a year, the benefits of adhering to the standards have already begun to show, according to a recent interview.
Gammell works for CG&S Design-Build and had major input in exactly how his new home was put together. He made many decisions about the materials, fixtures and hardware used in the building of his home based on the rating system set up by Austin Energy. Though his selections were a bit pricier than the less green alternatives, he knows that the choices will pay off in the future.
Upgrading to environmentally friendly and energy efficient materials and systems cost Gammell somewhere in the neighborhood of $20,000. Though this may seem a major increase in the building price of the home, some of the choices will last longer than other alternatives and he has already seen proof of the energy efficiency through electric bills that remain in the $100 a month range.
Included in the upgrades chosen by Gammell was a metal roof, which will last approximately 20 years longer than a standard roof. He had foam insulation used throughout the home, rather than basic fiberglass. He also chose toilets and a heating and air conditioning system from an approved list put out by Austin Energy.
