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Another Misconception of Green Building

By
Real Estate Agent with thredUP.com

Global FireThe other day I received an email VIA Active Rain regarding Green Building.  The person was sharing their thoughts on the issue as to what they thought the down side was of Building Green. This was not a hostile e-mail, he was simply sharing his views.

I appreciate that.  This is one way how I know what topics need to be discussed.  One of the statements I was quick to disregard at first:

"So, I guess one might ask the question:  Why should a house appraise for more because its constructed to the codes? Its required by law!"

The more I thought about this, I realized that many consumers would not understand why I disregarded this statement.  There are a couple of misconceptions here.  One big one and that is what I am going to talk about.  I am going to refrain from saying this is true about ALL High Performance or Green Homes because as I mentioned in another post, these terms are sometimes used loosely and I can't speak for all builders around the globe.  Just the many that build true to terms.

Why should a house appraise for more because its constructed to the codes?

This is a great question and the answer is simple.  The Majority are NOT built to code.  They are for the most part built ABOVE codes.  Again, we run into some confusion regarding Green Homes and High Performance Homes...for the sake of conversation I will use the High Performance Home as an example as I believe that is what the consumer was referring to.  Again, this is just one example.

I contacted a builder that is part of the Green and LEED community in Houston today to get his opinion on the statement above.  I am going to do my best to quote..I was driving when I had the conversation.

"You can build a home to Codes at $100,000 or you can build it at $10 Million-homes can be built to code but it does not guarantee performance. Codes have to do more with Safety than they do Performance"

This is why the term is used.  If it were simply a little more energy efficient, Energy Star would be a better term.  By 'High Performing' it will be a step above.  I will use just a few Houston Building Codes for an example:

  • Exterior Walls- Building code asks for an insulation factor of R-13.  You are more likely to see a Minimum of R-15 or higher.
  • Attic Insulation- Building code asks for an R-30.  You are more likely to see an R-38 or higher.
  • A/C Seer Rating- The new minimum is 13 Seer that is manufactured.  You are more likely to see a 15 Seer or higher.  Buyers with the money will choose 20 Seer or higher. (The higher the Seer, the higher performing)

There are many, many other aspects of building Green or High Performance Homes.  I felt as though these 3 topics would be a great, easy way to explain.  These homes do not cost/appraise more because they are built to code.  They cost/appraise more because they exceed. 

Now, the cost.  How much more are we talking about?  Well, that's for another post.  Let's just say that it's another slight misconception that needs to be put to rest. 

Comments (28)

Paula Henry
Home to Indy Team @ HomeSmart Realty Group - Avon, IN
Realtor - Indianapolis Real Estate - 317-605-4174
Stephanie - I appreciate the education about building green. We do not have many here and I always like learning new things. Thanks!
Jul 20, 2007 01:57 PM
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP
Hi Paula, Thanks for reading up on it.  I appreciate it.  :) 
Jul 20, 2007 02:01 PM
Listed Green.com -
ListedGreen.com - Henderson, NV
A National Relocation Resource For The Green Home

Remember Paula,

You can list green, energy efficient homes and developments to a worldwide audience.

At Listed Green

Listed Green

Jul 20, 2007 02:07 PM
Mary McGraw
GLREA - Rockford, MI
2015: Solar Energy Is Still A Simple Machine!

Stephanie - very informative and timely post once again! There is also great information in the comments!

"You can build a home to Codes at $100,000 or you can build it at $10 Million-homes can be built to code but it does not guarantee performance. Codes have to do more with Safety than they do Performance"

This is a very important point and your examples effectively show what you are referring to.

I especially agree with David's comments on proper installation of products. This is the very reason why it is so important to interview your home building team to be certain they have the knowledge and expertise to construct a High Performance Home. Equally important IS the manufacturing process. I know when Adam chooses a supplier/vendor part of his interview process regards their manufacturing process.

Keep up the great work Stephanie! 

Jul 20, 2007 03:55 PM
Thesa Chambers
West + Main - Bend, OR
Principal Broker - Licensed in Oregon
you are so smart - most of this is green - I mean greek to me.... I learned a lot reading this post.
Jul 20, 2007 05:18 PM
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP

Thanks Mary, that is all very true.  Installation and Manufacturing is important.  I wish we could explain all of this in ONE post.  :)  I guess people will have to keep tuning in to find out more.

Hi Thesa, Thank you!  I am glad that it helped.

Jul 21, 2007 01:09 AM
James Quarello
JRV Home Inspection Services, LLC - Wallingford, CT
Connecticut Home Inspector

Stephanie,

"You can build a home to Codes at $100,000 or you can build it at $10 Million-homes can be built to code but it does not guarantee performance. Codes have to do more with Safety than they do Performance"

Consumers believe that a home built to code, whether green, high performance or otherwise, is a good well built home. The fact is this couldn't be further from the truth. Codes are minimum standards. Most builders will build to code, not exceed it.

Energy performance on a code built house today is generally better than a home built 10 years ago. But the main thing that makes any home perform well is quality of workmanship. If components and systems are poorly installed, they will not operate at their highest efficiency.

I am a home inspector and have an infrared camera. I use this primarily for locating energy loss. This past winter most every home I was asked to come and look at was under five years old. It is amazing the lack of quality in these homes. Almost everyone of these homes were high end homes. Many were a million dollars or much more.

This is an IR image from the clients masterbedroom over the fireplace. The darker the color the colder the spot. The wifes side of the bed was next to this spot. She had been complaining for years that it was cold. She said to me everyone thinks I'm crazy. Well she wasn't as you can see. This house was about four years old.

The builder had tried to correct the problem. You can see his "fix" in the image. Notice the warmer areas (orange spots) among the coldest areas. That is where he stuffed insulation into the cavity from the attic.

Building to code is equally as important as building well. Exceeding the code should yield better performance, but quality workmanship is paramount.

Jul 21, 2007 01:45 AM
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP

James, that's amazing.  It never ceases to amaze me the short cuts that are taken sometimes in construction.  You are bringing some excellent insight to my conversations. 

I think we need you in the Eco All Star Group.

Jul 21, 2007 01:59 AM
Mary McGraw
GLREA - Rockford, MI
2015: Solar Energy Is Still A Simple Machine!

Excellent comments James!

I agree with Stephanie! We could use your input! 

Jul 21, 2007 07:01 PM
Dena Stevens
Rocky Mountain Realty - Canon City, CO
Putting The Real Into Realtor Since 2004
I think the answer is in the question. " Why should a house appraise for more because its constructed to the codes? Its required by law!"  Houses should be built better than code. In some cases code is very minimal and in some counties nonexistent at all - El Paseo county is going thru a real tough patch right now. Houses are being given CO's that a month later are being condemned. But more to the point - if possible buildings should exceed code. If it doesn't cost anymore, uses common sense why not.
Jul 23, 2007 02:38 PM
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP
Hi Dena, isn't it amazing how we trust stuff like this.  Just goes to show, it is a minimum standard for a reason.  :)
Jul 24, 2007 03:46 AM
Lisa Rourk
Tide Marsh Real Estate - Charleston, SC

This is great information.  My husband is a Custom Home builder and he's been talking about this very same thing for a long time.  We spent a little more to get higher performing materials in our home and we have much lower energy bills than our neighbors.  In some cases our electricity bill is $75 less than a comparably sized home.

 

I had no idea there was such a thing as an ECOBroker. I"m going to check that out today.

 

Lisa Rourk

Aug 14, 2007 12:58 AM
Billnulls Blog Florida Realty Professional
Charles Rutenberg Realty - Clearwater, FL
AHWD
Stephanie - I really appreciate your taking the time to provide this information!!! Thanks!!!
Aug 25, 2007 02:53 AM
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP
Hi Lisa,  That is interesting.  I would love to hear more about how you got your bills so low.
Sep 15, 2007 02:11 PM
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP
Hi Barbara Jo,  You're Welcome!  :)
Sep 15, 2007 02:12 PM
Tamara Perlman
Referral Network Inc. - Truckee, CA

Stephanie--

Another great post!  And some great comments that follow. 

Not trusting built to code--my first experience came with my first remodel.  As we tore into the walls of a 6 year old house, we found scary things.  I said to the contractor that was overseeing the remodel--but it had to pass inspection to get finalled.  He just laughed at my innocence.  He mentioned that many times the building inspectors had no real construction experience, so they didn't know when things weren't really done properly and many times, they'd just drive by the house and sign off paperwork without even getting out of the car to inspect! 

I love James IR image--I don't think any of our home inspectors are using that!

Sep 15, 2007 05:59 PM
James Quarello
JRV Home Inspection Services, LLC - Wallingford, CT
Connecticut Home Inspector

Tamara,

Your comments are precisely what I try to tell my clients all the time. Contractors do not always put a home together correctly and the building inspector often does not look at the home in detail or not all!

I have written a few blogs on some of my recent finds. Check out No Support, Plainville, CT This was just one of many defects that the building official should have caught.

One area where I find builders cheating all the time is insulation depth or amount. I had one instance where the client was confined to a wheel chair and could not check the attic of his new handicap accessible addition. He had the architects plans which called for R-38 insulation in the attic. I found R-30 along with a few other problems. I was there to check the construction because he became suspicious of the contractors when they stopped returning his calls to fix and finish the project.

Another piece I wrote and has actually been published is Connecticut New Construction Progress Inspections. It explains why people who are having a new home built should have an independent inspector watching over the project.  

Sep 16, 2007 12:49 AM
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Keller Williams Realty - Ann Arbor, MI
Ann Arbor Area Real Estate
Love your poll.  I want to add that to my website.  Would you mind if I used your question?
Sep 16, 2007 02:43 AM
Billnulls Blog Florida Realty Professional
Charles Rutenberg Realty - Clearwater, FL
AHWD
Listed Green - that is one I will check out - always learning something new!!!
Sep 16, 2007 03:15 AM
Tamara Perlman
Referral Network Inc. - Truckee, CA
I love the idea of an independent inspector to oversee the process.  I was onsight virtually every day of my construction, but during the framing stages, I wouldn't know what to look for unless it was something like the shimmed support beam that James mentioned in his other post!  Fortunately, the contractor that was "overseeing" my owner/build project was intense on the details.  I am confident in the construction of this house. 
Sep 16, 2007 05:16 AM