Sunwood Development and Calcagni Real Estate add True Cost of Ownership
In an effort to demonstrate the superior monetary value of their homes to prospective buyers visiting their model homes and web sites, Sunwood Development and Calcagni Real Estate have added Ekotrope's True Cost of Ownership™ (TCO™) Application. The application allows potential buyers to better understand what their monthly ownership costs will be with a Sunwood/Calcagni home, factoring in projected energy and maintenance costs in addition to the mortgage. It also allows them to compare with other homes in their area. In many cases they can show that, even if their home price is, say, $50,000 higher, the monthly ownership costs will actually be lower. And even if the monthly ownership costs are higher, it can be a lot easier to justify a $50/month difference than a $75,000 difference in the purchase price.Maryam Taylor, a realtor with Calcagni, reports:
I love using TCO with prospective buyers. It gives them insight they haven't had before and it really surprises people! I showed it to a buyer recently who was looking at resale. It totally changed his perception and put new construction into the realms of his reality.
TCO iPad
She goes on to describe how the TCO application has helped them sell more upgrades to electric heat pumps, an option they provide that reduces energy bills more than it adds to the mortgage:
We offer the option to have electric heat pumps instead of propane for heating because we know it will reduce energy bills. Many buyers were skeptical of the upfront cost of the heat pumps at first, but the TCO App has made it easy to convince buyers that it's the better choice.
Sunwood Bridgewater TCO
The TCO Application is available on Sunwood Development's website and on Calcagni's community websites for the Bridgewater and Royal Oaks communities.
About Ekotrope's True Cost of Ownership
The TCO Application is believed to be the most sophisticated and accurate tool of its kind. It estimates monthly costs in the following ways:New Home Energy Cost is calculated using Ekotrope's proprietary energy algorithm, which runs an annual simulation of the home using hourly local weather data, current energy prices and the true energy specifications from the new home. Energy specifications are measured and recorded by 3rd party RESNET Accredited HERS Raters, and our energy algorithm is Accredited by RESNET for its accuracy. Used Home energy cost is estimated based on size, age, and location using a regression of data from the 2009 Residential Energy Consumption Survey (RECS). The RECS is administered by the U.S. Energy Information Administration (EIA) and surveyed 12,083 nationally representative homes in 2009. Energy bills have been calculated using 2009 usage estimates, then updated to reflect current local energy rates. Home maintenance costs are predicted over the first two years of ownership. The costs are estimated based on size, age, and location using data from the 2013 American Housing Survey (AHS). The AHS is the most comprehensive housing survey in the U.S., surveying 84,400 nationally representative homes in 2013. It is sponsored by the U.S. Department of Housing and Urban Development and conducted by the U.S. Census Bureau.For the TCO Application, maintenance is defined as any work required to maintain or make minor improvements to the quality of the home. Additions have been excluded. Specifically this includes, but is not limited to, the following:
Painting, plumbing, roofing, siding, electrical wiring.
Replacing windows and doors, insulation, air conditioners, heating equipment, septic tanks, water heaters, dishwashers, garbage disposals, driveways, walkways and fencing.