I took a fantastic class this morning dealing with a new law that was recently passed: starting January 1, 2018, anyone wishing to sell their home within Portland city limits (with or without an agent) must get a home energy audit prior to listing, and must provide the report with the home energy score (HES) to any prospective buyers. The HES is on a scale from 1-10, with 1 being least efficient and 10 being most efficient. Scores are based on BTUs used, and the majority of your score comes from heating, water heating, and cooling.
There is a lot of talk about the impact that these scores are going to have on the real estate market, and a lot of confusion as to what this is going to mean for sellers. I’ve taken some of the more important information that I learned and put it into an infographic for easy reading and sharing:
It’s important to realize that the requirement to sell only applies to the City of Portland (so if you’re in the Metro area, but not Portland proper you don’t have to have one). You’ll also want to note that you don’t need to make any upgrades or repairs based on the report. All you have to do is get it done and provide copies.
This city ordinance is still in early stages: they haven’t yet worked out everything, and will have a rule-making session in July to nail down some of the finer details. For instance, we don’t yet know how long an energy audit will be valid (but my guess is probably a year). Also condos are an area of concern because there are too many variables when you have units on all sides. Chances are that condos will be an exemption, but we won’t find out until July.
Even if you’re not thinking of selling next year, knowing your HES has great benefits. For starters, you’ll get a really clear picture of the energy efficiency of your home. The last page of the report shows upgrades that would increase the efficiency. It is broken down into 2 categories: update now, and update later. Alongside these repairs, your report will give you the estimated annual savings by making the change.
I’ll update once we know more about this new ordinance, but as always, feel free to reach out with any questions you have!