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Home Energy Score
Beginning July 1st, 2023, all homes offered for sale in the City of Bend must have a mandatory Home Energy Score. This new regulation is aimed at promoting energy efficiency and sustainability in the housing market, and it is expected to have a significant impact on both buyers and sellers. In this blog post, we will explore the pros and cons, and/or benefits for buyers and sellers.
What is a Home Energy Score?
A Home Energy Score is a rating system that assesses the energy efficiency of a home on a scale of 1 to 10. The score is based on a variety of factors, including the home’s insulation, heating and cooling systems, and appliances. The higher the score, the more energy-efficient the home is, and the lower the score, the less energy-efficient it is.
Pros and Cons for Buyers
For buyers, the mandatory Home Energy Score has several benefits. First, it provides valuable information about the energy efficiency of a home, which can help them make informed decisions about the long-term costs of owning and maintaining the property. By knowing the score, buyers can compare different homes and choose the one that will be the most cost-effective and environmentally friendly in the long run.
Another benefit is that the Home Energy Score can identify areas where energy efficiency improvements can be made, which can help buyers negotiate a lower purchase price or request that the seller make energy efficiency improvements as a condition of the sale. The report also gives buyers an idea of which future upgrades they may want to prioritize. This can also be particularly useful for buyers who are concerned about the environmental impact of their home or who are looking to save money on their energy bills.
On the other hand, one potential drawback for buyers is that the Home Energy Score is a relatively new system, and some buyers may not be familiar with how to interpret the score or how it relates to the overall value of a home. Additionally, some sellers may be hesitant to disclose the score if it is low, which could make it difficult for buyers to make informed decisions.
Pros and Cons for Sellers
For sellers, the mandatory Home Energy Score can also have several benefits. One benefit is that it can help sellers highlight the energy efficiency features of their property, which can make it more attractive to potential buyers. By providing a high score, sellers can show that their home is environmentally friendly and cost-effective to operate, which can be a major selling point for buyers.
Another benefit is that the Home Energy Score can help sellers identify areas where they can make energy efficiency improvements before listing their home for sale. By making these improvements, sellers can increase the value of their property and make it more competitive in the market. Additionally, by providing a Home Energy Score, sellers can demonstrate that they are committed to promoting energy efficiency and sustainability, which can be an important factor for some buyers.
On the other hand, one potential drawback for sellers is that making energy efficiency improvements can be costly, and sellers may not recoup the full cost of these improvements in the sale price of their home. Additionally, some sellers may be concerned that a low Home Energy Score could deter potential buyers, which could make it difficult to sell their home quickly.
Conclusion
Overall, the mandatory Home Energy Score is a positive development for both buyers and sellers in the City of Bend’s housing market. It provides valuable information about the energy efficiency of a home, which can help buyers make informed decisions and promote energy efficiency and sustainability in the housing market. While there are some potential drawbacks to the system, these can be mitigated with education and by working with a qualified real estate agent who is familiar with the Home Energy Score system. Large nearby markets, such as Portland, OR, have been requiring Home Energy Scores for listings since 2018 with little issue. When surveying top producing Realtors in Portland regarding the Home Energy Score system, there is almost zero negative feedback. A general consensus is that although a Home Energy Score is an additional cost to sellers, it is extremely rare that the sale of a home falls through due to a Home Energy Score report, and it often acts as more of a benefit to the transaction.
There are a handful of local businesses in Bend that are already set up to provide a Home Energy Score, many of which bring years of experience providing this very same service in Portland, Oregon. The cost of a Home Energy Score ranges from roughly $185-$450 depending on your service provider, size of home, and location. To find out more about the process of measuring a Home Energy Score, follow this link to the FAQ section of a trusted service provider’s website: https://
