We went through all of this below:

• Qualified for a Conventional 30 Year Renovation Mortgage
• Found the perfect home with a great floorplan, location and already had several improvements done
• Performed an Energy Audit to find out how we could reduce the Energy Usage by 50%
• Had some designs drawn for a NEW Master Bathroom
• Bid out the actual cost of repairs
• Then the home was appraised at AFTER renovation Value
• And after closing, the work would be complete within 60 Days and paid for through your Mortgage!

The Experts and I are hoping to do another one of these in the coming months- A Kitchen Remodel!

For now to wrap it up, I would like to say Thank You to all of the Experts that helped and offered their time and Expertise to make this happen:

Oh, and one more thing-  Stay tuned for an exciting announcement of what you can find here at TurningHoustonGreen in 2009!  Michael Strong and I will be offering an 8 Part Series of Webinars on Greening Up The Existing Home based on the Hypothetical Remodel Series!

Michael Strong, CGP
Vice President, Brothers Strong, Inc.
Michael@BrothersStrong.com

Grace Coffman
Grace Coffman Designs
Grace.Coffman@sbcglobal.net

Clayton Farmer
Alternative Power Solutions
Clayton.Farmer@apowersolutions.com

Christine Wilson
Prime Lending
vip-consulting@charter.net

And now, if you would like to read the Hypothetical Remodel Series from beginning to end with no interruptions, I have published all 7 parts of the Series in to one PDF E-Book- Just click the image below.  It is complete with the Design images and all!

Which brings us to this one.  Once we have our plans on paper as to what we are going to do with our older home once we buy it, what is it going to cost me per month once I own the house?  First, we need to find out what the Energy and Master Bathroom Remodel is going to cost:

The 50% Reduction in Energy Usage included:

• New A/C Ducts in the Attic that are insulated and leak less than 5%
• 18 SEER variable speed HVAC system that is properly sized
• Spray on Radiant Barrier and Blown in R-30 Cellulose Insulation

Total Cost for the Energy Remodel is ~$25,787.90~

The Updated and Larger Master Bathroom just to name a few included:

• Energy Star Rated Ventilation Fan
• IceStone Countertops
• Low and Zero VOC Paints and Primers
• Pleated Media filter put in to HVAC for healthier air
• Locally Manufactured and/or Recycled Glass tile blocks for the shower
• Water Efficient Fixtures
• Sun Tunnel in the Shower for maximum lighting

Total Cost of the Master Bathroom Renovation is ~$36,192.36~

Total Cost of the two together is ~$61,980.26~  The entire Scope of Work is below for your to review and find out exactly is involved in both of these jobs.

Now we have to add all of this in with the Sale Price of the home.  The list price of the home was $326,600 and simply as an example we used a Sales Price of ~$323,000~

In order to find out what our total monthly payment will be, we combine the two amounts for a Final Sales amount of ~$384,980~

So we take the $384,980 -

• 5% Down for a Loan Amount of $365,731
• 5 1/2% interest on a 30 yr FIXED loan
• Makes a Principal and Interest payment each month of $2076.58
• With Taxes and Insurance Escrowed your payment would be $3399.78

Wow! We did it! We found that Single Story home, the perfect size, great floorplan, Awesome location and now have it exactly the way you wanted AND within your price range!  We ‘Greened’ it up a little- Reduced the Energy Usage by 50% so that you can benefit from lower Utility Bills!  This all took the Approximate Down Payment of $19, 251 when you went to closing.

It is really that easy!  We do not have to try and find the Pristine Green Home that you are looking for- We can find a home that is exactly what you want, minus the Green and it would likely be more within your budget anyhow!  So, let’s keep an open mind and have some Fun with our imagination when we go look for that Green Home!

And now, as promised, here is the Full Scope of Work for all of the Renovation that was Cost out during this Series:

Hypothetical Remodel Scope of Work

The 2300 sq ft home built in 1959 with a Master Bedroom that is a pretty good size but the Master Bath is pretty small with poor ventilation. Well, that’s nothing that can’t be fixed, right?

As part of this Hypothetical Remodel we called out Designer Grace Coffman with Grace Coffman Designs and Michael Strong with Award Winning Brothers Strong Remodeling.  Both of these Professionals are HIGHLY knowledgeable with the USGBC and ASID ReGreen Remodeling Guidelines to make Renovations as Environmentally Responsible as possible without sacrificing quality, comfort and Dazzle!

Here are some before photos of what we saw when we arrived:

In the one photo we have the Vanity area that adjoins the Master Bedroom and enters to the Bathroom on the left.  Then we enter the Bathroom that has a very clean look, two sinks great cabinets, etc. but lets see what it would take to make it a little bigger and green it up a little bit.  What Grace and Michael thought would be a good idea was to combine the vanity area with the Bathroom in to one larger area.

They rolled around some ideas, did some measurements, spoke with the Homeowners and then were off to do their magic.  Below are the proposed designs that Grace came up with:

I placed a red arrow where the Vanity outside of the Master Bathroom used to be. Above is a suggestion to enclose the area, keep the Double sinks and place a linen closet where the Vanity used to be.  Below are some more detailed renderings of what the vision is.  Notice the details of lighting, water fixtures and cabinetry that updates the room.

Now for another view of what could happen:

Above is the suggestion to close in the area but only have one sink in the large area and place the second sink where the vanity used to be.  Below are the detailed renderings again updating the area.

All of these are great recommendations! Now, what about some of the materials going in to the renovation:

• Energy Star Rated Ventilation Fan
• IceStone Countertops
• Low and Zero VOC Paints and Primers
• Pleated Media filter put in to HVAC for healthier air
• Locally Manufactured and/or Recycled Glass tile blocks for the shower
• Water Efficient Fixtures
• Sun Tunnel in the Shower for maximum lighting

That is just a little bit of what would have to go in to this remodel.  There is quite a bit of work with tearing out and rebuilding and even more to take in to consideration to maximize Energy Efficiency, Water Efficiency and other Environmentally Responsible features. Next on the list, Cost!  Not only what will it cost to do this massive renovation- But remember, we are rolling this in to a mortgage.  Let’s see what this would work out to be as an approximate Monthly Payment!

• 2300 sq ft home
• Built around 1959 or so
• Cosmetic upgrades have been made and windows replaced to Double Pane

One of the goals on this one is to, in the end, reduce the Energy Usage of this home by 50%- In order to do that we have to know exactly how the home is performing and the easiest and most accurate way to do that is through an Energy Audit.  There are a handful of different kinds of audits that can be performed- The most common being a Visual Inspection with Thermography.  The Infrared Camera can detect Heat, Moisture, Cool Air, etc.  In other words, it can see behind sheetrock and ceilings what we can not. Now, keep in mind that we used an actual home for this experiment where Alternative Power Solutions went out to perform an actual Energy Audit for us.  During the audit, this is what they looked at:

• Level of Insulation in both the walls and attic
• Size and Efficiency of the Heat and A/C
• Made sure that the Double Pane windows were the proper ones for the Southern Region
• Scanned over vents and lighting for air leaks
• Visual on other areas that promote Air to leak or otherwise be where it probably shouldn’t

Here are a couple of the pictures taken:

In the one picture we can see the Canned Light in the Ceiling.  With the discoloration around it, we see that the insulation in the attic above the ceiling is inconsistent which can sometimes cause some rooms to be hotter or colder than others.  Something else to consider about Canned Lights is that other than the newer Energy Star ones they do not seal at the ceiling allowing for hot air from the attic to infiltrate to the living space below. The next picture shows inconsistent insulation in the ceiling around an a/c and heat vent.  You will also notice the really dark area- this is air blowing.  It appears that there may be an issue here as well with air leaking from around the register.  Simple caulk around the top to seal it would work on that. After a good hour or longer of walking around the home and looking at everything that directly or indirectly affects Energy Efficiency there was a list of items in the home that would need some attention to achieve the goal of 50% reduction.

• The HVAC system was over sized and should be updated to a higher efficiency
• The Ductwork in the attic needed to be changed and upgraded
• There was a need for added insulation in the attic
• Radiant Barrier needed to be applied to the roof decking

All of this will be priced out along with the Master Bathroom Remodel to the USGBC/ASID ReGreen Guidelines so that it can all be rolled in with the original loan buying the home. Next part of the series we will discuss the Master Bathroom.  We will enlarge it from its current size and update it in the most Environmentally Responsible way possible.

Typically most homebuyers have only a certain amount of money when they start looking for a home.  Whether it be that they are going to pay cash or get a mortgage, there is only so much that a typical homebuyer can do.  I touched on the topic of minimal options available when buying Green in Houston right now and how many of the ‘Green’ built homes inside the loop, or outside for that matter, are townhomes and condos.  Well, that doesn’t appeal to everyone.

For the sake of this part of the Series let’s say that the homebuyer does not want to go over $400,000 and wants to stay around 2300 sq ft or so.

I have had clients that want room for Gardens, Composting Pits- Others just may not physically be able to buy a home with an extensive amount of stairs for one reason or another.  Then some decide to build Green.  Why not LEED?

Well, unless you have a lot already to use this can add up.  I am sticking with near Downtown because location seems to be an issue with many buyers today.  Let’s say that you purchase a lot in an area/location that you like with an existing home on it.  It’s an older home, possibly built in 1920 or so, and selling for lot value only.  This will likely still run you a minimum of about $125,000 in many areas.  You Demolish the home (or deconstruct if you want to be a darker shade of Green) and design your 2300 sq ft home- The home can then cost, if built LEED, over $415,000.  By the time it is all said and done the realistic cost of building with land included could cost about $600,000.  Depending on the area it could be over $700,000.

But this homebuyer can not go over $400,000.

This is where I personally would recommend to one of my clients to consider an older home to fix up but it can be hard to have the vision of the home being ‘Green’.  So let’s consider this: (location only for example)

How about a great area near I-10 and Kirkwood that is really close to work?  About 10 minutes away.  We find a nice single story home on a large lot that has great solar orientation for both Solar if you want it and an Organic Garden.  Wonderful Trees, nice Community feel, It’s the size you want- 2300 sq. ft. and the list price is about $326,600!  Well under your mark of where you want to be.  The kitchen is updated, gorgeous actually, with Stainless Steel Appliances (all Energy Star).   It has double pane windows already, great bedroom sizes, the flooring is beautiful and what you want.  But the Master Bathroom is way too small, somewhat outdated and the home is not Energy Efficient.

That’s ok!

The sold comparable properties in this neighborhood for this size could sell anywhere from $275,000 to $450,000 depending on the condition and how much updating has been done.  With the home we are considering at $326,600 is far from being at the top of the comparables.  How much would that LEED ReGreen Bathroom Remodel cost?  How about a ReGreen Energy Remodel to finish it up?

With this scanario you would have $75,000 to play with to make this home Green and stay within your budget or atleast $125,000 to play with to stay within the comparable prices for the community. That is a whole lot of work that could be done, and some nice work at that.

The only other question right now you may be asking is “Do I have to have that kind of cash to make this happen?”

No. Not at all.  What if you could do the work that you want done to the home before you move in or shortly there after, still have your Conventional Loan with 5% down and a somewhat competitive interest rate along with that?

The rest of this series will walk us through how to get a Mortgage WITH the Green Remodel calculated in to it, bidding the work out, getting the design done AND how to have this work done PRIOR to moving in or very shortly there after.  Part 3 will discuss the mortgage product that has been around for many years…and is still out there today.

How does it sound so far?