Friday, June 7, 2013

Buying An Energy Efficient Home

A feature for National Homeownership Month


All the emphasis on energy efficient homes these days often adds to the home-buying jitters, especially for first time homebuyers.  Concerns about ongoing energy bills, what upgrades might be needed and the potential cost, and related comfort issues are now top of mind for more people than ever when buying their next home.  Here are the top 3 concerns we hear from homebuyers and real estate agents, and the important things to consider before making any hasty conclusions.

“Those windows look old….I bet they’re really inefficient.”

The window companies have done a great job of convincing homeowners that old windows automatically mean energy efficiency problems.  In our experience conducting thousands of home energy audits, that’s simply not true.  Most times, there are basic air leakage issues around the windows that can easily be addressed without replacing the windows themselves.  As we always say, if you’re going to replace your windows, do it for the right reason, such as if you want an updated/newer look.  But windows are way too expensive of a ‘guess’ to make, and can unnecessarily drive you away from a great home.

“The monthly utility bills for this place are outrageous!”

Smart homebuyers are asking for sample energy bills before they commit to purchase.  This makes a ton of sense – you should know what your monthly budget will be for the new place.  If the statements send you into shock, here are some things to consider:
  • Everybody’s usage is different.  If they have 4 kids, 2 teenagers, work from home and leave the lights and TV on all day for the dog, their usage may simply be a lot more than yours.  Also peek at the thermostat and see what their settings are at.  Plus or minus 2 degrees on the settings can have up to a 20% impact.
  • Consider climate.  Was it unseasonably hot or cold for the time period of the sample bill you’re looking at?  If so, you may not be looking at ‘normal’ usage.
  • Check the systems and appliances.  Look for EnergyStar labels.  If they’re not present, the units may simply not run as efficiently as newer models.  This doesn’t mean you should replace everything right away, but simply know you’ll have the opportunity to upgrade to more energy efficient versions throughout time.
  • Look for evidence of ‘vampire’ usage.  Homes are loaded with electronics today that remain plugged in all the time, ‘sucking’ energy even when not in use.  Home entertainment systems are the top culprits and can add a significant amount to bills.  A few bucks at the DIY store will get you some gadgets to easily remedy the situation and lower your bills.
  • Feel for temperature differentials as you walk through the property.  If high energy bills are truly the result of poor home performance, there are typically corresponding comfort issues somewhere in the home.  The upstairs can be hotter/colder; drafts may be present in areas; the basement may be significant colder.  Note this can be difficult to judge if outdoor temperatures are mild.  You can ask the sellers if they experience any of these, but be aware they may not always reveal the entire truth.

“The MLS for this home says it has energy efficient appliances and systems, so it must be very energy efficient.”

We are thrilled that the MLS is starting to report on energy efficiency attributes of homes in certain parts of the country.  However, this is only one small part of having an energy efficient home.  High performance systems will not operate as intended if you have other issues such as missing/failed insulation, massive duct leakage, air leakage, etc.  These are not attributes visible to the naked eye, nor are they within the scope of a home inspection.  Remember, optimal home energy efficiency is achieved through a combination of personal behaviors, energy efficient systems, a good building envelope and minimal air leakage.

Bottom line: don’t let surface-level information sway your decision on a home, one way or the other.  Interpret the initial information you have access to as a sign that further investigation may be a smart move.  In our experience, it’s a minority of homes that need huge, expensive upgrades to achieve better energy efficiency.  And remember, if you do anticipate making energy improvement investments, incentive programs and energy efficient mortgages may be available to you.

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