Making the Invisible Visible: Valuing Energy Efficiency Improvements in a Real Estate Transaction

Often, when homeowners make improvements to an existing house, the most important aspects of home performance – including safety, comfort, energy efficiency, durability, and environmental impact – are literally invisible during key steps of any home sale or refinance transaction.

One result is that energy efficiency investments are overlooked or inaccurately valued at the time of a home sale. The key to making these investments visible to everyone involved in a home sale – including appraisers, Realtors®, buyers, and sellers – is standardized documentation and consistent communication across the energy efficiency and real estate industries.

new paper from CNT Energy and National Home Performance Council shows how proper documentation, verification, and standardization of energy efficiency improvements can add value to a home that owners can recoup at sale.

The paper provides a blueprint and outlines seven steps the energy efficiency industry must take to unlock the value of efficiency in the real estate market:

Unlocking the Value of an Energy Efficient Home

  1. Consistently document energy efficiency improvements
  2. Ensure data is incorporated into the appraisal process
  3. Work with the real estate community to reflect these improvements in local for-sale listings
  4. Capitalize on existing education and training opportunities
  5. Report on the growing inventories of energy efficient homes
  6. Develop standardized IT solutions
  7. Work with partner financial institutions

The outcome is that energy efficient features become visible and can be accurately valued when a home is sold. This lays the groundwork for a virtuous cycle in which homeowners are eager to invest in energy efficiency improvements because they know that they can recover some or all of their investments at the time of the home sale.

The full paper is available online at  www.cntenergy.org/media/Unlocking_Value_2013.pdf

Those interested in learning more are invited to participate in a webinar on Wednesday, October 2,  at 11 a.m. CDT. Details and registration are available at www.cntenergy.org/events/.

Views: 761

Tags: Realtor, appraiser, efficiency, energy, estate, home, improvement, real, sale, transaction, More…use, value

Comment

You need to be a member of Home Energy Pros to add comments!

Join Home Energy Pros

Comment by Glen Gallo on September 16, 2013 at 5:17pm

Excellent read thanks for sharing

Comment by Joseph Lamy on September 3, 2013 at 12:35pm

The negawatt...watta concept..an unholy un-grail, ..from wiki..

"Roughly 10% of all U.S. electrical generating capacity is in place to meet the last 1% of demand and there is where the immediate efficiency opportunity exists.

On March 15, 2011, the Federal Energy Regulatory Commission (FERC), the agency that regulates the U.S. electrical grid, approved a rule establishing the approach to compensation for demand response resources intended to benefit customers and help improve the operation and competitiveness of organized wholesale energy markets. This means that negawatts produced by reducing electrical use can demand the same market prices as real megawatts of generated electricity

How the whole-house captain and solarPV carport net zeroed the house and rode the Golden Chariot into the sunset magazine

Comment by tedkidd on August 29, 2013 at 8:36am

Until we can see MPG for homes and compare to MPG of other homes, it will be a complex argument.  People tend to dismiss or deeply discount complex arguments of value.

We need to take this: http://bit.ly/gainsvillegreen and turn the data into a present value argument of the negawatt, the value of the better MPG.  

Home Energy Pros

Home Energy Pros was founded by the developers of Home Energy Saver Pro (sponsored by the U.S. Department of Energy,) and brought to you in partnership with Home Energy magazine.  Home Energy Pros is sponsored by the Better Buildings Residential Network.

Latest Activity

Mike Cerqua replied to Tony Hicks's discussion Slab-on-grade Insulation
" "
1 hour ago
Mike Cerqua joined James Sayers's group
Thumbnail

Marketing Energy Efficiency

Sharing ideas, tools and examples of promoting energy efficiency to consumersSee More
1 hour ago
Mike Cerqua joined Sean Lintow Sr's group
Thumbnail

Best Practices (Residential)

Best Building, Retrofitting, or even Auditing Practices - what are they, what should change, what…See More
1 hour ago
Profile IconMike Cerqua and john mitchell joined Leslie McDowell, BPI's group
Thumbnail

Building Performance Institute (BPI)

BPI is the nation's premier standards development, quality assurance and credentialing organization…See More
1 hour ago
Mike Cerqua joined Michael Stuart's group
Thumbnail

INFRARED THERMOGRAPHY USERS

This group is dedicated to knowledge sharing and discussion of infrared thermography for building…See More
1 hour ago
Mike Cerqua commented on Mike Cerqua's photo
Thumbnail

1468701_10153490382175195_341120974_n

"Getting good use out of our sprayfoam truck! Brought the small cellulose machine and 15 bags for a…"
2 hours ago
Mike Cerqua posted a photo

Our Sprayfoam Truck looking its best...

I dream of a day where all sprayfoam trucks carry equipment like this!
2 hours ago
Eric Kjelshus replied to Elizabeth Guinn's discussion ERV in need of backflow preventer.
"http://www.southwarkmetal.com/product/butterfly-dampers/ I have made my own but some work better…"
2 hours ago

© 2015   Created by Lawrence Berkeley National Laboratory.

Badges  |  Report an Issue  |  Terms of Service