tco amabel
TRANSCRIPT
Holdontoyourhats…Yourvisionofhomeownershipisabouttochangeforever
Mosthomebuilderschoosetobuildhomesto“meetlocalbuildingcodes”
AndthesehomesareOK…
Afewhomebuilders,liketheteamatNewEarthLiving,
choosetobuild“HighPerformanceHomes”…
AndthesehomesarebetterthanOK…
Theyaremorecomfortabletolivein,
Theywilltypicallylastlonger,
Theywilltypicallytakemuchlessefforttomaintain,
Andfromdayone…theycostsmuch,much,much
lesstoown
Prettyboldstatements,right?
Isthatlittlevoiceinyourheadsaying…
“ProveIt?”
IthoughtYou’dneverask!
Introducing
(TotalCostofOwnership)
CaseStudy:Amabel Community– Ithaca,NY
TheDetails:
31SingleFamilyHomes1600-2100sq ftAllBuilttoNetZeroHERS– GridTiedPricePoint- $385- $425,000CommunityGarden&CommonGreenCompetition– mostlyolderhousingstock,circa1900’s– 1970’s,traditionallybuilt,pricedinthe$300 - $400’s
ExistingHome:
124E.KingRoad,Ithaca,NYListedPrice- $394,9004BD/2.5BA2291sq ftYr Built– 1989EstAnnualEnergyExpenses- $4,123*MortgageFinancing– 30YrFixed,90%Conventional,4.00%
*basedonenergyexpensemodelingusingHESPro ExistingHomeConfigurationTool– USDepartmentofEnergy– ©2015.
PropertyTaxandHomeownersInsuranceexpensesassumedtobeinparityforbothhomes
Amabel NewConstruction:
Lot24– DREAModel-MasterSuiteDIthaca,NYListedPrice- $425,0004BD/2.5BA2083sq ftYr Built– 2016EstAnnualEnergyExpenses- $420**(Will offerwithResidentialEnergyGuarantee–BondedBuilders)
MortgageFinancing– 30YrFixed,90%Conventional,4.00%
**EstimatedMonthlyBaseServiceChargeof$35.00permonth
HeadtoHead
Step#1:WestartoffbyshowingtheprospectivehomebuyerswheretheirmoneyisgoingbyintroducingthemtoTCO™
Thenwefindopportunitiestosavemoney…
Step#2:Webeginbytakingalookattheenergyperformanceofthetwohomes…twentyfiveyearoldresalepropetiesintheIthacamarketoftenhave
datedutilitysystems...andthesehomescanbeexpensivetooperate
RelyingonaHERSRating(withanEnergyGuaranteefromBondedBuilders)fortheNetZerohome,andanenergymodelgeneratedfromtheDOEHESPro websitefortheResaleProperty…theNetZerohomeisprojectedtosaveapotentialbuyerover$250,000inutilityexpensesoverthetermofa30yrmortgage.
Step#3:WealsoshowtheprospectivehomebuyershowtosavemoneyexploringPMIoptions…dependingontheirexpectedownershipperiod,the
rightchoiceherecansavethemanadditional$100amonth
Mosthomebuyersandtheirlendersonlylookatonemortgageinsuranceplan,Withover150plansavailable,theTCOsystemlooksatallavailableplanstodeterminetheplanwhichfitsthebuyersfinancialprofile…herewefindastrategytosaveanadditional$7,400
Step#4:Wealsoexploretheopportunityforourclientstoinstallaquickchargechargerintheirgarage(s)tofacilitateanElectricVehicle.Manyhouseholdshaveonedriverthatdoesthe“dailycommute”thing…andtheopportunitytogreatly
reduceautomobileoperatingexpensesarefranklyamazing
WhenyoulookatthetotalCostofOwningahomeholistically,it’sanaturalfittolookatyourcommutingexpensesaswell.Formanyhomebuyers,bundlingahighperformancehomewithanEVisanatural.Inthiscase,assumingmonthlycommutingof1500miles,thehomebuyercansaveanadditional$130,000.
Step#5:Managinghomemaintenanceexpensesandwaterconservationaretwolineitemsofthehouseholdbudgetthataretypicallythoughtofasbeing
relatively“lowtech”…notsofast
OurfinalstepintheTCOanalysisfortheAmabel community includesareviewofthefinancialresultsassociatedwithusingverylowexteriormaintenancematerialsandtheNexuseWater graywaterrecyclingsystem.Imaginethepowerofbeingabletoofferyourbuyersahomethatonlyneedstobepaintedonceeach15yearsandrecycles66%ofthewaterthat ituseseachmonth...Amazing...Additionalsavingsofalmost$18,000.
Step6:Andfinally,weshowthemthe20,000ft.viewandaskonequestion…HowmuchmoneydoYouwanttosave?
Itgets‘em thinking
Forthoseofyouthatliketoseeallthenumbers…
WhenusingTCO,developingastrategicvaluepropositiontoengageprospectivehomebuyersbyshowingthemthevalueofenhancedperformance,isverysimple...
Myworkisbasedonlyonwhatcanbeexecutedtoday(nottheory),andincludesapplicationsforthenewconstructionandretrofitmarkets.
TCO™isofferednationallyasamarketbymarket/accountbyaccount,valuepropositionforindustrystakeholdersthrumyresidentiallendingteam,exclusivelybyPrimeLending
ForbuildersthatuseHERSRatings,throughourstrategicrelationshipwithBondedBuildersWarrantyGroup,whenactingasapreferredlender,weunderwritethecostofthe2Yr REGprogram(ResidentialEnergyGuarantee)
MyContactInfo:
KerryM.Langley,NMLS506632PrimeLending,APlainsCapital Companyklangley@primelending.comwww.projecttco.comCell-770-365-7769
InClosing…
TCO™Trademark2015TeeCeeO Consulting