Remember those stickers on every new car in the sales lot – the one touting the fuel economy? Now imagine one on the front door of every home for sale. No, not a fantasy…a coming reality. And ultimately homebuyers will benefit and the real estate industry will adapt.
In November the Department of Energy (USDOE) released a long-anticipated pilot program for formal testing in ten locales across the U.S. The program is entitled “Home Energy Score” and it signals the official dawn of a new era of energy awareness in the real estate industry.
Some of you may still remember the dawn of the era of home inspections in the 1970’s, as homebuyers and real estate agents began hiring contractors to verify the condition of homes prior to purchase. The increasing public awareness of potential home defects and the desire for liability management by the real estate industry caused the spontaneous creation of an entire class of business – the home inspector. Today, few can imagine entering into a purchase agreement without the benefit of a home inspection.
For the past ten years, another industry has been quietly gathering steam – the home energy auditor. With the increasing public awareness of the economic and environmental ramifications of poorly-performing buildings, these auditors are finding a friendly reception by government and educated homeowners. The primary tools in the home energy auditor’s toolbox are the HERS (Home Energy Rating Score) evaluative software and the boots-on-the-ground diagnostic equipment to analyze the home’s relative weak points. Here in Central PA there are already several established companies offering energy audits.
With the advent of a national home energy scoring tool, I believe this industry will come into its own. My prediction is that we will see the inclusion of home energy audits and energy scores into the real estate transaction within five years – maybe 3. And, just as home inspections inevitably burgeoned and become a bargaining chip for buyers, I envision the home energy score to also become a point of negotiations over price and repairs.
Change is inevitable. Remember the fuel economy stickers on cars? No one debates anymore (if they ever did) whether they are a good thing or not – a prospective auto buyer wouldn’t have it any other way. With the USDOE’s full rollout of the Home Energy Score a reality coming this summer, expect to see energy labels on homes within just a few years and energy efficiency components added to the real estate purchase process. And within a few more years homebuyers will wonder how people did without for so long…
If you are building or renovating a home to high-performance/green principles, or have already done so, I would appreciate hearing about it atjgeoghan@lancasterpagreenhomes.com.
