Tuesday, May 27, 2008

Explaination of the home performance disclosure

I believe that it is critical to educate in the process of buying and selling real estate. It is my belief that there is a big difference between new construction and existing construction. Here are some facts: We as a society have been learning how to build more energy efficient houses since the 70’s. Codes have increased requirement for insulation as time has passed and our technologies for heating and cooling have improved. Green building programs that have a third party certified energy piece to them look to perform better than current code. Codes are different in every state.

I am pointing this out because there is a national discussion about requiring energy audits on homes. I believe this is really only necessary for new construction. It is obvious to most people that a newer home performs better than an older home. Energy audits let the builder know that they did the work correctly.

I do have a proposal about how to handle educating the general public regarding the code changes and home performance. The proposal is as follows: Require a home performance disclosure for real estate transactions. The disclosure would detail when the codes started to require the use of insulation and other energy related measures, It would state what tax credits are available for the consumer to update their home, It would also state that there are free energy audits available and state that the consumer can opt to have an energy audit.

2 comments:

Jeff said...

I wish this would have been in place when I bought my house(Or at least explained to me). 1923 home w/ lathe and plaster and no insulation whatsoever in the walls.

I probably would have given a little more consideration in buying it had I known it would be such an energy hog to heat/cool.

Anonymous said...

Hi Kria,

It is a very interesting idea to have an energy audit mandated during a transaction. Not sure if it is a good idea but definately one for thought! Where is Oregon on the legislation or is this still in discussion?

I like your idea of a disclosure of the building code for the time period a home is built. It seems like another good step in educating our clients on their home before they make the "go ahead" decision. I also see it as another way buyer's can see the true price tag of a property and seller's who have improved their properties can acheive a market advantage.

My mind is just swimming with different ways this could be used! I do think that we need to keep in mind that in the midst of all the wonderful changes and challenges of greening our marketplace we must keep homeownerhsip within the reach of first time home buyers. Things that add to the cost of the transaction must be very carefully considered.

This is one excellent way to be of additional service to clients and set ourselves apart!

Keep up the great work!!