Valuing Energy Efficiency in Homes

With soaring energy costs in the country the question is being asked more and more if the energy efficiency of a home should be taken into consideration when being appraised? The answer is yes. As energy costs continue to raise, the value of a home that is more efficient then the standard home should receive higher valuation and that is just where the industry is beginning to turn. An energy efficient home rating program was developed by a US government based organization dedicated to helping consumers save money and protect the environment by using and educating consumers about energy efficient products and practices. An energy efficient home rating system is able to test the overall efficiency of a home and rank it based on how well it falls within the energy guidelines. With testing and government based certificates, homeowners can now have documentation of their home energy savings. If a homeowner has a higher energy efficiency then the average home, then not only are they saving money on their energy bill, but increasing money in their pockets monthly and thus giving their home a higher value.

It is not necessary to do a complete home renovation in order to realize energy savings. Savings can start with your everyday home appliances such as your microwave, light bulbs, DVD players and more. Did you know that even a small change such as switching from an incandescent light bulb to a longer lasting compact fluorescent bulb can save you over $60 in an 8-year period based on replacement and operating costs? And that is just based on one light bulb. When a home is filled with products that meet government energy saving standards, not only can the savings accumulate but appraisers are now beginning to add value to home’s based on the home’s overall energy savings.

According to Kathy Price-Robinson in the United States there are currently around half a million homes that have had energy efficient home rating conducted. The U.S. Department of Energy by the year 2010 would like at least two million homes to be rated. “That is a small step in comparison to the over 128 million homes in the United States today that are not rated; however, it is surely a step in the right direction.” The energy efficient home rating program was created not with the resolve just to rate homes for overall efficiency but to make consumers more aware of the waste of energy in homes that drive up energy bills.

Copyright © 2006, Frangipani & Siti Crook, The Energy Efficient Home