No, we haven’t found that “good” or “bad” energy audits affect the price or negotiation at all. In fact, after all the hype settled down, we stopped providing the Audit up front unless the agent wrote it into the contract. Otherwise we just provide it to the buyer at or before closing as required, and that hasn’t been a problem.

For our buyers, we write it into the offer that the seller will provide it prior to the end of the Option Period. But it’s never been a factor in the deal or caused a buyer to feel happy or sad.

Mainly, the audits are predictable and boring as they all say basically the same thing, which is: Add insulation, weather stripping, solar screens and seal the ducts. Those same 4 things dominate almost every audit, All homes have leaking ducts.

Therefore, we can tell a buyer in advance what the audit will say and be right 99% of the time. This makes it a non-eventful, perfunctory step in the process.

Other agents may report a different experience based on how they handle things.
Steve

Have you found that homes with “good” energy audits can sell for a higher price than the same house with a “bad” energy audit? Or has there been no effect on how buyers view the value of a house they are thinking of buying?

As a real estate agent, would you include a “good” energy audit as a feature you would promote in the listing of a house you were selling?

It really hasn’t caused any issues for us at all. Of course we proactively manage the process and other agents may not, but for us it’s just been an extra item to deal with.

Steve

Now that it’s one year since the implementation of ECAD, can you comment on how it has affected the Austin real estate market? Are most home sellers complying? How are prices affected? Are any sellers motivated to improve the energy-efficiency of their homes? etc.?

Thanks

I googled ECAD and came upon your site. I’ve read a few of your articles and have enjoyed them greatly. I was curios when you mentioned that the “Realtor community worked with the city” because I’d like to be more involved. I am a home inspector in Austin and have the energy auditor certification. It is my opinion that the audits are a waste of money and that there are other means of obtaining the city’s goal of saving energy. I’m hoping you could point me in the direction of someone who represents the real estate industry side of dealing with the city. I’ve had brief conversations with some Austin Energy officials involved in the mandatory audits but do not feel they are interested in any changes.

Thanks and I’ll continue to subscribe to your articles.

Bill

Thanks for your comments and the youtube links to your videos.

Steve

http://www.youtube.com/watch?v=Nhx0Xax3Jjc
http://www.youtube.com/watch?v=QKt_nd9_VXc

Bill

Steve

Thank You

The Austin Audit is only a tool to help buyers / sellers understand their home and provide a general assessment of the homes energy efficiency and to recommend repairs / upgrades that may help to make the home more efficient. What Austin Energy is asking of the ECAD Audit is actually only a small sampling of a full comprehensive Home Energy Audit. A full comprehensive energy audit would include a blower door test to depressurize the home, gas checks, carbon monoxide inspections of gas fired appliances, and possibly an infrared camera scan and would take upwards of 4 hours to complete. This type of audit would include hundreds of of other factors NOT even required by the Austin Audit. These types of audits can cost upwards of $700

The Austin Energy Audit is asking only for a test of the duct system (Duct Blaster Test) and some basic energy efficiency information such as attic insulation, obvious air leaks, solar screens, etc. This is only considered a “basic” or “partial” audit at best. The thought process that led to these requirements are somewhat based on the fact that in this area of the country, Central Texas, our homes are mostly serviced by cooling and heating systems that use “flex duct” materials in the attic. These systems are notorious for leakage and replacing the bad ones and sealing the newer ones can greatly improve the energy efficiency of these homes. As much as 30% of the the homes energy can be lost just through the ducts and attic access penetrations. These are some of the areas that will provide the greatest efficiency gains for the least amount of money.

There is currently a LOT of misinformation circulating about these Austin Energy Audits as well some animosity over how it all came to be. But, for now, it is here and needs to be dealt with in the least painful way possible. Go to Austin Energy’s website and read what is required and what is NOT required. Call several auditors and try to understand the process. If your are currently selling your home don’t sweat the audit process, ALL homes can use some improvement. If you are buying a home don’t be misled into thinking a home fails an audit if it has leaky ducts. There is nothing that will be discovered during an energy audit that cannot be easily fixed or improved.

Thanks for clarifying. I thought AE provided water because all of the services are initiated and billed from the same place, but I suppose the water is separate from City of Austin and Austin Energy is simply owned by City of Austin? It’s somewhat confusing.

But your point I think is that one has to be an electricity (Austin Emergy) customer, not just a city of Austin utility customer.

Thanks

Steve

Ed Clark
Communications Director
Austin Energy
(512) 322-6514