First, here's a link to a Fact Check entry re the energy bill and the removal of point of sale provisions once therein regarding home energy ratings on resale houses. Makes the national real estate trade organization's position pretty clear!
1. Energy efficiency can (and should) be treated like any other measure associated with the decision process in purchasing a home. A HERS II rating is an attribute of the house, albeit not one that's readily seen. This is an important point in the event efforts are marshaled to limit use of Home Energy Reports, either by opposing point of sale mandates for Home Energy Reports or otherwise seeking to deny Buyers access to what is a material fact associated with each house and its cost of ownership.
2. In addition, if a HERS II score is just another measurable characteristic, it follows logically that some houses will have better scores than others. Scales of measurement run both ways. Some houses have more living area than others--we don't assume the smaller homes are UNDULY stigmatized and devalued or that a need exists to suppress the availability of living area figures to Buyers--and in fact small houses DO tend to be worth less than larger homes--other factors being equal. Ask any appraiser. The same thing should happen with HERS II scores. Less energy efficient homes may well be devalued by SOME buyers, but more energy efficient homes will be valued higher by SOME Buyers-- helped by the verification of fine HERS II rating. The trade associations only focus on the possible decrease in value--NEVER mentioning the other end of the scale and the benefits associated with a good energy efficiency rating. The proportion of Sellers and houses adversely affected by HERS II information is likely to be relatively small. Another tail wagging the dog scenario. Oh, and remember the planet?
The objective (at least for many people, if not organizations) is to increase the energy efficiency of the existing housing stock in the most efficient way in the least possible time USING EVERY means reasonable available.
3. All Buyers won't have the same interest in energy efficiency ratings. Buyers differ in their priorities--be they ocean views, yard area, etc, etc. There seems to be an assumption that all Buyers will share a common perception regarding energy efficiency and ratings. That won't be the case. For a variety of reasons, some Buyers may not be sensitive to energy efficiency differences at all--that would decrease the dread decline in value used to justify lobbying pressure from the trade associations. Buyer just trying to enter the house market may seek out the most affordable houses regardless of the energy efficiency and even then may value the recommendations for upgrades included in HERS II reports.
4. Home Energy Ratings produce index numbers that are not predictable by the intuitive expectations of the public, the real estate agents and in most cases the energy raters themselves. This contrasts with Home Inspections--that often confirm fairly accurate expectations about condition issues. As a result, the HERS II rating should be available DURING the decision process to enable comparison of energy ratings along with other variables before the RIGHT house is selected for purchase. Adopting the Home Inspection model of performing the HERS II tests after the house is in escrow will not work well at all. The benefits of being able to provide an objective energy efficiency number for comparison, offering upgrade suggestions and removing a source of uncertainty from the Buyer's decision process will more than offset the Seller's expense in obtaining a HERS II rating.
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