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