What Will New Energy Disclosure Rules Mean for Home Prices?

Monday, July 8, 2019
An analysis of nationwide surveys by the Department of Energy found that high-efficiency homes sold 18 to 89 days faster than average. Isaac Smith, a residential program development manager at the Minneapolis-based Center for Energy and the Environment, hopes that new pre-sale inspection requirements in Minneapolis, set to take effect in 2020, will help expand the high-efficiency trend. The new requirements add three components to the city's existing Truth in Sale of Housing inspections: surveying windows, insulation, and heating systems in each home to give it an energy-efficiency score between 0 and 100. The Minneapolis City Council approved the changes as part of its wider effort to reduce carbon emissions 30 percent by 2025 and 80 percent by 2050, using 2006 emissions as a baseline. "My thought is that it’s going to create more awareness in consumers' eyes," says Shae Hanson, a realtor with Keller Williams Realty. "They're going to be able to see what they can do to increase a home's energy efficiency before they purchase it, and that may play into how they want to make an offer on a house." The Minneapolis Area Association of Realtors opposed the new city inspection requirements, but Lakes Sotheby's Realty's Todd Shipman personally backed them and is convening a "green task force" to prepare realtors for a similar future statewide standard. He previously chaired a sustainability task force for the National Association of Realtors.
Joey Peters, Southwest Journal (MN) 7/8/2019

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