The document introduces the Total Cost of Ownership (TCO) analysis method for comparing the full costs of owning different homes. It provides a case study comparing a newly constructed high-performance home to an older resale property in Ithaca, NY. The TCO analysis saves potential buyers money in 6 steps: 1) Comparing estimated energy costs over 30 years ($250,000 savings), 2) Optimizing mortgage insurance, 3) Factoring electric vehicle savings, 4) Lower maintenance/water costs, 5) Resulting overall savings of $355,000 versus the resale home. The analysis shows buyers how to maximize savings through energy-efficient construction and transportation.

1. Hold on to your hats …
Your vision of homeownership is about to change forever

2. Most home builders choose to build
homes to “meet local building codes”

3. And these homes are OK …

4. A few home builders, like the team
at New Earth Living,
choose to build “High Performance Homes” …

5. And these homes are better than OK …

6. They are more comfortable to live in,

7. They will typically last longer,

8. They will typically take much less effort
to maintain,

9. And from day one …
they costs much, much, much
less to own

10. Pretty bold statements, right?

11. Is that little voice in your head saying …
“Prove It?”

12. I thought You’d never ask!

13. Introducing
(Total Cost of Ownership)

14. Case Study: Amabel Community– Ithaca, NY

15. The Details:
31 Single Family Homes
1600-2100 sq ft
All Built to Net Zero HERS – Grid Tied
Price Point - $385 - $425,000
Community Garden & Common Green
Competition – mostly older housing stock,
circa 1900’s – 1970’s, traditionally built,
priced in the $300 - $400’s

16. Existing Home:
124 E. King Road,
Ithaca, NY
Listed Price - $394,900
4 BD / 2.5 BA
2291 sq ft
Yr Built – 1989
Est Annual Energy Expenses - $4,123*
Mortgage Financing – 30Yr Fixed, 90%
Conventional, 4.00%
*based on energy expense modeling using HESPro Existing Home
Configuration Tool – US Department of Energy – ©2015.
Property Tax and Homeowners Insurance expenses assumed to be
in parity for both homes
Amabel New Construction:
Lot 24 – DREA Model- Master Suite D
Ithaca, NY
Listed Price - $425,000
4 BD / 2.5 BA
2083 sq ft
Yr Built – 2016
Est Annual Energy Expenses - $420**
(Will offer with Residential Energy Guarantee –
Bonded Builders)
Mortgage Financing – 30Yr Fixed, 90%
Conventional, 4.00%
**Estimated Monthly Base Service Charge of $35.00 per month
Head to Head

17. Step #1: We start off by showing the prospective home buyers where
their money is going by introducing them to TCO™

18. Then we find opportunities to save
money …

19. Step #2: We begin by taking a look at the energy performance of the two
homes … twenty five year old resale propeties in the Ithaca market often have
dated utility systems ... and these homes can be expensive to operate
Relying on a HERS Rating (with an Energy Guarantee from Bonded Builders) for the
Net Zero home, and an energy model generated from the DOE HESPro website for
the Resale Property … the Net Zero home is projected to save a potential buyer
over $250,000 in utility expenses over the term of a 30 yr mortgage.

20. Step #3: We also show the prospective home buyers how to save money
exploring PMI options … depending on their expected ownership period, the
right choice here can save them an additional $100 a month
Most home buyers and their lenders only look at one mortgage insurance plan,
With over 150 plans available, the TCO system looks at all available plans to determine
the plan which fits the buyers financial profile … here we find a strategy to save an
additional $7,400

21. Step #4: We also explore the opportunity for our clients to install a quick charge
charger in their garage(s) to facilitate an Electric Vehicle. Many households have
one driver that does the “daily commute” thing … and the opportunity to greatly
reduce automobile operating expenses are frankly amazing
When you look at the total Cost of Owning a home holistically, it’s a natural fit to look
at your commuting expenses as well. For many home buyers, bundling a high
performance home with an EV is a natural. In this case, assuming monthly commuting
of 1500 miles, the home buyer can save an additional $130,000.

22. Step #5: Managing home maintenance expenses and water conservation are two
line items of the household budget that are typically thought of as being
relatively “low tech” … not so fast
Our final step in the TCO analysis for the Amabel community includes a review of the
financial results associated with using very low exterior maintenance materials and
the Nexus eWater gray water recycling system. Imagine the power of being able to
offer your buyers a home that only needs to be painted once each 15 years and
recycles 66% of the water that it uses each month ... Amazing ... Additional savings of
almost $18,000.

23. Step 6: And finally, we show them the 20,000 ft. view
and ask one question … How much money do You want to save?

24. It gets ‘em thinking

25. For those of you that like to see all the numbers …
When using TCO, developing a strategic value proposition to engage prospective home buyers
by showing them the value of enhanced performance, is very simple ...

26. My work is based only on what can be executed today (not theory), and includes applications for
the new construction and retrofit markets.
TCO™ is offered nationally as a market by market / account by account, value proposition for
industry stakeholders thru my residential lending team, exclusively by PrimeLending
For builders that use HERS Ratings, through our strategic relationship with
Bonded Builders Warranty Group, when acting as a preferred lender, we underwrite the cost of
the 2 Yr REG program (Residential Energy Guarantee)
My Contact Info:
Kerry M. Langley, NMLS 506632
PrimeLending, A PlainsCapital Company
klangley@primelending.com
www.projecttco.com
Cell-770-365-7769
In Closing …
TCO™ Trademark 2015 TeeCeeO Consulting