Posted by Snow in
Energy Scores
Energy efficiency can come about in a number of ways. The new stimulus plan and monetary efficiency plans, spurred on by domestic fiscal policy has evolved some sophisticated concepts concerning home ownership and residential finance. And if the “caveat emptor” policy of home resales was acceptable business practice in former decades, the energy efficiency score with a home appraisal or valuation is the green scorecard of today. Energy consumption inefficiency in the home now has a cost.
If you think the energy efficiency of your home does not become a matter of equity concern, you might be wrong. Fixing midcentury homes, restoring full potential energy handling, and mending flawed insulation have become the competitive derby among home sellers. Installing dimmer switches, timed lighting, area efficient heating and cooling, recycling rain water and gray water, and refurbished insulation and cold spot checking could return more value in an appraisal.
In coming years, a home with solar panels and rain catchment tanks, energy star appliances and efficient window/light/siting may outrank a bigger home with more square footage. The theory is that an efficient new owner is going to undergo all the home analysis and sustainability site testing anyway. Eco-friendly mechanisms like dimmers and externally heated water pipes show that a home has been give the once-over by capable environmental technicians.
Now that many home owners are getting with the sustainable living bandwagon, the opportunity to sell or even refinance your home in future might be affected by your energy consumption and efforts to address these heating and cooling efficiencies while resident. The assumption that nobody else will ever appreciate the effort is a spurious one. The home appraisal inspector sees all. Putting your home on the market may be a viable way to tap into sustainability customers for your area.
Home shoppers evaluate everything, down to the last voltage specification and groundwater quality rating. Now, smart and sustainable green energy home owners will get the credit they deserve for implementing home efficiency programs for energy reduction, re-use, and recycling. Eco-friendly home owners might get larger capitalized loan amounts, and lower mortgage rates due to their energy efficiency home score. Thus, a $2,500 gray water recycling appliance bought for home use might net $15,000 in future sales value to the home.
Potential home buyers will browse your choices and assume if no cost savings or energy savings devices have been installed, they weren’t able to be functional. But soon the energy management choices you make for your home may be part of your mortgage. The competitive home real estate market could reflect positive benefit on your home with even modest changes. This is when home recycling big ticket items become really affordable. Those photovoltaic panels could be under the tree this year!
Housing and Urban Development Chairman Shaun Donovan has stated that “home loan terms should support conservation”. Now the government may be enacting finance terms for government backed mortgage securities that allow and require energy efficiency scores (or grades) for homes sold under their auspices. That’s a nice green friendly option for those who have been priced out of the tax breaks.
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