Home Energy Audits: Should They Be Mandatory?
A few days into the mandatory energy audit scheme put in place by the Austin, Texas city council and already there is negative press about the new ordinance.
Page three of today’s Wall Street Journal carries a story about how the new law is ”vexing” the city’s homeowners. Some complain that disclosures will dampen home-sale prices. Others quoted in the story resent criminalization of non-compliance – the law carries the threat of a misdemeanor charge. And many are simply confused by the new law. They are surprised to learn that an energy audit is not part of the typical home inspection.
Formally known as The Energy Conservation Audit and Disclosure Ordinance, the new law took effect in Austin on June 1. And while it does mandate an energy audit for home sellers, it does not require them to pay for any improvements that may be uncovered. Similar ordinances in San Francisco and Berkeley, Calif. require put a home-improvement onus on the homeowner prior to selling.
According to the Austin Energy web site www.austinenergy.com the ordinance is part of a broader city Climate Protection Plan, which aims to substantially reduce the region’s carbon footprint. The goal is to offset peak demand for electricty by 700 megawatts by the year 2020. This is an admirable goal, but should these constraints be put on homeowners, perhaps to their financial detriment? The answer in most places remains ‘No’. But we can certainly expect that energy audits will become an increasing part of the home selling disclosure process — one way or another. Even if an energy audit is not required, many savvy home buyers are going to ask for one at their expense, or (in this slower home buying market) may require one conducted by the seller prior to closing.
One can also envision a time, in the not too distant future, when home buyers will reward those who have paid for energy performance improvements and pay a premium for homes that score well on energy audits. To a homeowner who puts in new windows, adds insulation, seals their HVAC system, a $300 energy audit will seem like a small price to pay for tests that will ultimately boost their asking price.
Legally required energy audit disclosures are fair. Home sellers already expect to provide past home energy bills to prospective buyers. It makes sense because it brings greater clarity to a free market for homes. It brings more transparency to the home buying process. And in the end, laws like the one that recently took effect in Austin, will help us as a country move toward a more energy independent future.
What do you think about the Austin Energy-Audit Ordiannce? We’d love to get your feedback.
This is a progressive step that goes to show you how sincere Austin is about taking the difficult steps required in order to change the impact of our built environment on the natural environment. I was most struck by the number of people who thought the audit was already a part of the inspections process. Realtors by profession are greedy and any obstacle to turning a buck is fought (the NAR’s opposition to the new energy and climate bill is all the proof you need of that). Buyers want to know what they are buying, and it should not be too much to ask for the performance of the home to be listed. Imagine buying an appliance or a car that had no performance measurements available.
Hats off to you Austin!
Great comments from a great green remodeler. Thanks for weighing-in on the subject Mr. Anschel.
I agree with Mr. Anschel here. It’s a small leap towards a long-term solution to our energy problem. I also agree that this would eventually benefit home sellers in that this audit can increase their home’s value.
I think most negative reactions are really caused by the timing of the ordinance. We are just recovering (or not) from the economic crisis and the real estate market has been hit pretty badly. House prices are at an all time low so sellers who bought high a few years ago have lost thousands of dollars. With all due respect to sellers and Realtors, it’s just hard to accept a loss, especially in that magnitude. Having to shell out $300 for an additional home inspection that could possibly be used as a negotiation leverage against you is just absurd!
Let’s wait for the market to stabilize. This ordinance would’ve gained some acceptance by then. Hey, it’s already a law, they have to play by it.
- Jeff
[…] http://www.qualifiedremodeler.com/interactive/2009/06/08/home-energy-audits-should-they-be-mandatory… […]
You should check out this site for more info: http://whypavegreen.org/
Energy audits should not be manditory. However, it must be manditory that the auditors be certified by a national organization to a set of national standards similar to the National Electric Code. There should be a tax credit and/or emphasis by the buyer that an energy audit would assist in evaulating the value of the home whether paid for by the buyer or the seller. In our area home inspections are recommended but not required. However, the home inspectors are not required to be certified and they should be. Case in point, Radon inspections and remediations are required before a home can be sold. The lobyists and product suppliers are the only ones that benefited from this one. The health and wellbeing of the home owner as it relates to products providing safety in the home is inconsistent. The average home inspector is not required to be a certified electrician or plumber. Yet, a Radon System installed in a garage is mandatory while the electrical outlets in the same garage are not protected by Ground Fault Interrupters even though there is a water hose bib in the garage. A home owner can die much faster and more often from an electrical shock than from Radon.
Therefore, the certification of the inspectors/auditors must be manditory. Then, incentives for the homeowner can be implimented to a uniform set of standards to promote energy reduction and the like.
All problems can be solved in due time after sufficient analysis of the problem. Making hasty emotional decisions and enacting laws is what destroyed our Nuclear Industry. Today we have an energy shortage because of those decisions. And as far as nuclear safety is concerned, we have solved the safety problems years ago otherwise there would have been reports of mutations, illnesses, or death by the sailors who have served on the Nuclear Subs and Carriers.
Really Good comments from all. Keep up the good work.
I believe that energy audits are the future, they provide an excellent way to show before and after performance results to the homeowner. I agree that they should become tax credit eligible. The credit would do far more than some of our current energy policies we have in place today do.
[…] simple measures can be done to cheaply save heat and electricity from flying out the window. Some legislation is beginning to require energy audits at sale of a house, but this needs to be done now. Just […]
Currently in Mississippi we are closing Energy Efficient Improvement Mortgages every month and the energy audit and improvements have not only saved the consumer monthly on their utility costs and improved the value of their home on the appraisal but has created more jobs for contractors. Little did I know when I started originating these loans over a year ago that I was the lone ranger in the U.S. for Energy Improvement Mortgage Improvements under under the Energy Star Lender site. Hope we can grow this program as it can strengthen and stimulate our enconomy in the right direction.