How do I Certify My Home?

How do you turn a “toxic asset” into a “green home”? It takes many players, but luckily, not a lot of time. Following a foreclosure, the REO Listing Agent prepares to renovate the home into compliance with one of three levels of green certification. Each level has its own standards and benefits geared toward the condition of the home and the bank’s need. Each level addresses the three key principles of green building: energy efficiency, natural resource conservation, and indoor air quality.

	The agent starts the process by analyzing the home and noting the needed repairs and upgrades.
	The agent then selects appropriate upgrades from a list of measures specified by Greenovation for each level of certification. Click here to see the Greenovation Certification Checklist (PDF) of measures for each of the three levels of certification.
	The agent then orders a minimum of two quotes from preferred suppliers and local labor forces to provide and install the renovations.
	At the end, a Greenovation-Accredited Home Rater visits the home to make sure the property meets the mandated standards for the corresponding level. The Home Rater then licenses the property with the appropriate label, such as “Certified Green Level 1.”

At this point, the agent can market the property as “green” instead of “foreclosed.” ² The agent can also advertise the newly available benefits, such as federal purchase and tax incentives, special “green” bank loans, and efficient home operating costs. This can make the home more attractive than similar models in the neighborhood.

Where Do I Learn About the Specific Measures for Certification? »

2. The arrangements with homeowners associations (HOAs), cities, and states must be in place before renovations begin. This may include waiving imposed liens in the interest of changing the vacant home into a profitable property. The best interests of the cities, state, and HOAs lie in the home selling for a fair market value, so as not to drag down taxable values or neighborhood values, as well as attracting a homeowners rather than investors. These vested interests in adding Certified Green homes to a community may become even more important with the possible imposition of Carbon Commodity Trading Programs, which are gaining support from the new U.S. administration.