Energy Fit Homes is a certificate program administered by the Center for Energy and Environment, designed specifically for existing homes in Minnesota and is focused exclusively on energy efficient upgrades that are cost-effective to the homeowner. The presentation includes background information on building science and the benefits of Energy Fit Homes for both homeowners and Realtors®. Real estate professionals who attended the presentation received the tools needed to start integrating the program into their Realtor® client services.

1. The Energy Fit Homes Certificate
Certification and Market Benefits
Realtor Continuing Education
Presented by
Rebecca Olson, Director of Residential Programs | NEC
Megan Hoye, Engagement Coordinator | CEE

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Course Objectives
1. Understand the Energy Fit Homes Certification &
learn what requirements need to be achieved for
Certification
2. Absorb three home-energy basics
3. Learn how this can be used as strategy for client
engagement and boosting future sale value
4. Discover best practices for gaining a marketing
edge for Certified homes

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Agenda
• Certification program introductions and building
science overview(15 min.)
• Requirements and process for certification (5-10 min.)
• Homebuyer trends and certification benefits (15 min.)
• Recommendations for listing, marketing and resources
for certification (15 min.)
• Questions (5-10 min.)

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1. Designed for existing homes
• Doesn’t disadvantage older homes
• Every home can meet standards
2. Focused specifically on
energy efficiency
3. Tied to existing utility
efficiency programs
What Distinguishes
Energy Fit Homes?

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400,000+ Minnesota homes
have inadequate insulation
1976 Energy
Code
Before
1929
1940 to 1959 1960 to 1979 1980 to 1999
19%18% 23% 26%
Percentage of MN homes built
Since
2000
14%
~52%

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Efficiency is Currently Invisible
Efficiency is
currently invisible

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Minneapolis & West Metro | St. Paul & East Metro
• ~10,000 homes scored since 2014
• 380 homes certified (37 outstate)
• 700+ realtors across the metro
• Homebuyer class instructors

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Three things to know about
residential building science:

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Building Science Basics
1. Most Energy Costs go to Heating and Cooling in MN Homes
55% Heating and
Air Conditioning
20% Lights & Electronics
15% Appliances
10% Water Heating
*MN DOC- Division of Energy Resources

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Building Science Basics
2. Most Ice dams can be prevented by air sealing and
insulation

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Building Science Basics
3. It’s important to take Indoor Air Quality into
consideration with energy efficiency improvements

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What are requirements and
process for Certification?

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Cost Effective Improvements
• Pays for itself in energy
savings over lifetime of
the improvement
• Significantly improves
the Indoor air quality,
comfort or durability of
the home

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Certification Components
Attic Insulation & Air Leakage
Wall Insulation
Heating System Efficiency
Efficient Lighting
Windows
Programmable Thermostat
Combustion Safety &
Ventilation
1
2
3
4
5
6
7
5
2
1
7
7
3
4
3

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Steps for Qualification
Receive home a energy assessment &
a Home Energy Fitness Plan
√
√
√
Complete work recommended by the
Home Energy Fitness Plan
Complete Certificate application
RECEIVE YOUR CERTIFICATION PACKET IN THE MAIL!

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Low cost of Certification
$100 or less

20. 12/10/202112/10/2014

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Market Trends +
Certification Costs & Benefits

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Homebuyer Trends:
36%
22% 23%
34%
19% 18%
35%
22%
24%
39%
25% 26%
49%
25%
27%
0%
10%
20%
30%
40%
50%
60%
Heating & Cooling Costs Efficient Lighting Efficient Appliances
All Buyers ≤ 34 35-49 50-59 60-68
Age Groups
*2015 National Assoc. of Realtors

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Homebuyer Trends:
36%
22% 23%
34%
19% 18%
35%
22%
24%
39%
25% 26%
49%
25%
27%
0%
10%
20%
30%
40%
50%
60%
Heating & Cooling Costs Efficient Lighting Efficient Appliances
All Buyers ≤ 34 35-49 50-59 60-68
Age Groups
*2015 National Assoc. of Realtors

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Homebuyer Trends:
“Pointed out unnoticed features
or property faults”
48% to 58%*Ranked 2nd by buyers as what they valued about their real estate agent.

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9% price
premium
Pay $6,000
to $9,000
more
National Association of Home Builders
2013 Study
CA Housing Market Study
2012

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Average Non-certified
Minnesota Homes
Annual Energy Costs
$1,500 to $2,000

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Average Annual Energy Cost
of Certified Homes
$250 to $400 less

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Average Improvement Costs
HIGHEST PRIORITY BEST VALUE
Exterior wall insulation $2,600-$3,200
SECOND PRIORITY HIGH VALUE
Attic air sealing & insulation $2,000-$4,400
THIRD PRIORITY HIGH VALUE
Furnace replacement (95% AFUE +) $3,600-$4,400
FOURTH PRIORITY LOWEST COST
Storm windows / panels Varies
96

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Additional Homeowner Benefits
Assurance of quality work

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Home Durability

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Average Cost savings Peace of mind

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Case Study 1:
• 1-story (rambler)
• Built in 1950
• Score: from 81 to 97
• Furnace: 80% furnace replaced
with 96% Model
• Attic Insulation: Added R18
• Air Sealing: Reduced leakage
by 15%
• Water Heater: Power vented unit
installed (safe combustion)
• Home Energy Squad install CFLs
• Total Cost: $6,000
• Annual Savings: $298
Roseville

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Case Study 2:
• 1.5 story
• Built in 1949
• Score: from 73 to100
• Wall Insulation: All dense packed
• Kneewall Insulation: Added R25
• Attics Insulation: Added R45 in
side attics, added R29 in peak,
• Air Sealing: 48% leakage reduction
• Water Heater: Power vented unit
installed (safe combustion)
• Home Energy Squad install CFLs
& programmable thermostat
• Total Cost: $4,360
• Annual Savings: $790
St. Paul

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• Split-Level
• Built in 1963
• Score: from 45 to100
• Furnace: Replaced 60% furnace
with 95% model
• Attic Insulation: Added R29
• Air Sealing: 36% air leakage
reduction
• Wall Insulation: Dense packed
exterior walls and garage ceiling
• Water Heater: Power vented unit
installed (safe combustion)
• Home Energy Squad install CFLs
• Total Cost: $8,870
• Annual Savings: $1,015
West St. Paul
Case Study 3:

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When is the Certification
best utilized?

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Scenario 1 | Before market
Facilitate communication &
educate your clients

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Scenario 1 | Before market
Build future sale value

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Time of Sale Benefits
• Likelihood that they can recoup the value of the
investment made in the energy upgrades when it is
time to sell the house.
• Requirements that are cost effective, achievable,
and customized for age and type of construction.
Scenario 2 | At the time-of-sale
A market edge

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Distribution of Scores
Best Practice 1:
Start conversations early
with homeowners that live
in these homes.

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Recommended Practices: MLS Listing
Best Practice 2:
• Select green certified
in listing form
• Insert Certificate PDF
to Supplements
• Upload certificate into
image carousel

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Recommended Practices: MLS Listing
Best Practice 3:
Turn Green Certification
“On” as a default for client
searches

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Recommended Practices: MLS Listing
[Insert here]
How to use the green certification check box

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Recommended Practices: MLS Listing
Now your newest
default search field

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Customer Experience
• Engage with Seller early about ways to improve and
market their property’s energy efficiency
• Check in with seller about work they have done or certificates
they may have achieved
• Explain market edge of energy efficiency improvements
• Contact CEE/NEC to get score and make
improvements
• Enter info into MLS
• Selecting Green Certification drop down
• Add Energy Fit Homes certificate to slide deck and
supplements
A Realtor Walk-Thru

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Guides & Client Engagement
®
For you!

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Loan Resources
• Secured &
Unsecured
• Energy & general
improvements

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[more website walk thru]

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Report on website

50. Realtor Contacts
Rebecca Olson
rebeccao@thenec.org
St. Paul | East Metro
®
Megan Hoye
mhoye@mncee.org
Minneapolis | West Metro