President’s Column, Texas Association of REALTORS®
How many miles to the gallon does that home get?
The rising cost of energy is a concern for all of us. And I’m not just talking about what we pay at the pump. Energy prices affect how much we spend on almost everything we buy. That includes the electricity and natural gas we use to power, cool, and heat our homes. It even can play a role in the price you pay to purchase a home or how much you can fetch when you sell.
Buyers are still looking at all the usual factors in selecting a home; considerations like schools, bedrooms, bathrooms, and closet space – those things won’t change. Recently, though increasing energy costs are requiring people to place more emphasis on the proximity to desirable locations and the energy-efficiency the homes they find.
Utility bills and pressure at the pump are a substantial expenditure for many families, one that is often overlooked in affordable-housing decisions. Opting for a less-expensive home that’s 10 miles farther from work, or one with less-energy-efficient qualities may actually cost you more over time, and could even jeopardize your ability to afford the home. Talk about diminishing returns!
If you find a home that piques your interest, see what you can find out about the average energy costs for that property. Two seemingly similar houses can have large discrepancies in heating and cooling costs, especially if one was remodeled with energy-efficiency in mind.
What about transportation costs? How would living in this home affect your commute and errands? Is public transportation available? Living just 10 miles farther away from a five-day-per-week job adds up to 100 miles per week. That’s at least one extra tank of gasoline per month. These days, that can cost you a few thousand dollars over a year.
For homeowners and sellers
Energy-efficient homes are less-costly to run, more comfortable and have a higher resale value.
If you’re interested in making energy upgrades to your home, you can have a Home Energy Rating audit performed. A home energy rating system (HERS) report is a look at your home’s efficiency prepared by a trained professional.
In this audit, a certified home-energy rater will check insulation levels, window efficiency, the integrity of the ducts, ventilation, weather stripping, the HVAC unit, the water-heating system, appliance efficiency, climate considerations, and other components of energy efficiency. The results of the report show opportunities to increase efficiency.
Is your home already energy-efficient and on the market? If so, you’ve got a nice selling point. If you’re trying to sell your home and haven’t made any energy improvements, it’s possible the house down the street has that advantage over yours. A prospective buyer may feel she’s getting more for her money at the other house, due to the anticipated savings of a smaller utility bill.
Energy efficient mortgages
A HERS rating can also be used to help a buyer or homeowner qualify for financing options like an energy efficient mortgage.
In new construction, the HERS rating verifies that the home and appliances are energy-efficient, and the borrower qualifies for a higher amount based on projections of low energy consumption.
For existing homes, a buyer or owner can use an energy improvement mortgage to purchase or refinance the property. After the certified rater makes suggestions for efficiency upgrades, the estimated costs of these improvements are rolled into the loan. Once the projects are complete, the lender pays for the work out of an escrow account. So, even though the monthly payment to the lender is slightly higher, you would realized an advantage through lower utility bills.
Who can help?
There are Realtors who specialize in “green” real estate. Many of them have earned the EcoBroker designation, which teaches real estate professionals innovative energy, environmental and other green strategies. Additionally, some Texas Realtors have attained an affordable housing certification – Texas Affordable Housing Specialist – which includes a course on green technology’s effect on housing affordability. To learn more about real estate issues in the Lone Star State, or to find a Realtor who can help you make good decisions about purchasing and selling real estate, I invite you to visit TexasRealEstate.com.
Submitted by Amy DuBose
Association Executive – San Marcos Area Board of REALTORS®