Sep 27 2023 31 mins
It is hard to talk about how our homes impact our health, well-being, and climate when so many people still struggle to afford the cost of buying their own homes.
Today, I bring you a solution cultivated by Kerry Langley, an industry colleague I have known for quite some time.
I’m Marla, the Green Home Coach, and I invite you to lean in and pay attention as you discover how his financial modeling tools and software can help you unlock the doors to a brighter financial future and lead you to the home you deserve!
I am so excited to have Kerry share his insights today! They will allow you to approach your housing journey with a fresh perspective and attain outcomes you may never have thought possible.
Getting to know Kerry
Kerry Langley is a financial math enthusiast. With a career spanning 38 years in mortgage banking, he used to cater to millionaires with complex financial dealings. However, the 2008 recession took him from thriving to struggling and led him to re-evaluate his approach. After talking to a friend who worked at Merrill Lynch, he felt inspired to explore opportunities that could benefit a broader audience. So he transitioned to high-performance homes and green buildings, even though he had limited knowledge about green and energy-efficient concepts.
Making Green Living Financially Accessible
Kerry began a mission to make sustainable, green living financially accessible. He partnered with various organizations to create EarthCraft House, a certification program promoting green homes. That endeavor led to the development of his green mortgage software, Home Bucks, to help consumers identify ways to improve their homes, enhance energy efficiency, and reduce the total cost of ownership.
Creating Home Bucks
Even though he lacked experience in software development, Kerry still embarked on developing a software tool. The result was a groundbreaking tool called TCO (Total Cost of Ownership), which he later trademarked under the name Home Bucks. This innovative tool aims to empower consumers to live in homes that may seem out of their budget range by optimizing financial aspects.
Making Green Choices affordable
Through Home Bucks, Kerry demonstrated how buyers could incorporate items like solar panels into their mortgage, lower their interest rates, and ultimately reduce their total cost of ownership without straining their initial budget. His practical approach dismantled the misconception that sustainable living was financially out of reach and reinforced the idea that green choices could, in fact, be affordable.
The EarthCraft House Certification Program
After being approached by the Atlanta Home Builders Association and the Southface Institute, Kerry partnered with them to develop a green mortgage and got involved with the EarthCraft House certification program.
Enhancing Energy Efficiency
Kerry's approach to green homes includes the integration of solar panels, improvements in insulation, installation of energy-efficient appliances, and upgrades to windows. He aims to demonstrate that achieving sustainability and energy efficiency does not necessarily come with a higher price tag.
Addressing Misconceptions About Green Homes
One of the challenges Kerry encounters is the prevailing misconception that green homes are expensive and unattainable. Through his meticulous financial modeling and calculations, he debunks that myth.
Creating Long-Term Wealth
Kerry helps his clients make informed decisions about their homes, which is their most significant investment. He firmly believes that with careful consideration and a comprehensive understanding of the financial aspects, individuals can build long-term, multi-generational wealth through homeownership. His approach also involves smart financial planning.
The Importance of Thoughtful Home Buying
Kerry emphasizes the importance of thoughtful consideration when buying a home. He points out that people often spend significant time and effort choosing appliances or home decor, yet they fail to pay the same attention when buying a home.
Indoor Air Quality Matters
Indoor air quality frequently gets overlooked unless health issues arise. However, as families grow and parents become more concerned about the health of their loved ones, questions about indoor air quality, chemicals, and other factors come to the forefront.
Empowering Families
Young families, in particular, are challenged in the current housing market due to rising home costs. Kerry believes that by optimizing their budget and considering energy-efficient options, families can make more informed decisions and create a better living space for their loved ones.
Maximizing Resources
Starting a family tends to trigger a shift in priorities, so parents are more inclined to question the safety of chemicals in the home, off-gassing from cabinets, and other potential hazards. Aware of the lack of resources and guidance for addressing those concerns, Kerry understood how young families navigating the housing crisis could benefit from learning how to maximize their resources.
A Wise Investment
It is wise to invest in an asset that appreciates over time rather than investing in items that can depreciate. A home is generally the most substantial investment people ever make. Therefore, making thoughtful decisions that provide a comfortable living space and contribute to long-term financial stability is crucial.
Exploring the Home Bucks Model
The Home Bucks model takes several factors into account, including the price of a home, the commission structure, the current home performance, and potential improvements in energy efficiency and sustainability. It aims to calculate the total cost of ownership while considering all of those elements.
Driving Down Interest Rates
A key aspect of the Home Bucks model is its ability to lower interest rates, which significantly impacts the overall cost of homeownership. By optimizing various financial factors, Home Bucks can often reduce interest rates by one to one-and-a-half percent, resulting in substantial long-term savings for homeowners.
Flexible Financing Options
Home Bucks evaluates all possible financing options, not limiting itself to traditional mortgages. It considers point-of-sale financing for home improvements and various strategies. By analyzing their financial picture, Home Bucks helps its clients make the most cost-effective choices for their circumstances.
Paying Off the Mortgage Faster
A unique feature of the Home Bucks model is how it helps clients pay off their mortgages faster without additional payments. So, some homeowners can save money by shaving off significant years from their mortgage term.
A Unique Model
The Home Bucks model is unique in that it has the ability to transform people's financial outlooks while also enhancing the feasibility of green and energy-efficient homeownership.
Have a great green day!
Links and resources:
Green Home Coach Workshop - How to Sell the Value of Green Homes and Features
Do You Know Your Total Home Ownership Cost
3 Ways Real Estate Pros Can Be Change Agents
TCO Flex (Total Cost of Ownership)
Connect with Kerry and Homebuck$