Going Green: Home Energy Assessments 101

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The typical U.S. family could reduce energy bills up to 30% by making energy-efficient upgrades.

Your clients may be good candidates for energy efficiency home improvements that would save them money on energy bills, but they need reliable information to make smart investment decisions. For clients considering energy-efficient home improvements, you can help them navigate home energy assessments. Home energy assessments provide energy-saving recommendations for energy-efficient home improvements – ultimately enabling them to lower their utility bills and increasing their homes’ value and marketability. Understanding the benefits of a home energy audit can better position you as a trusted advisor. Learn more, earn more.

• What's a home energy assessment and how does it work? An energy assessment analyzes a home's energy usage and recommends energy-saving home improvements and provides estimated improvement costs and potential cost savings from each improvement.

Home energy assessment tools like the RESNET HERS^® Index and the U.S. Department of Energy’s Home Energy Score™ estimate energy usage and provide a report that can be used to finance improvements with energy cost savings based on the recommended efficiency improvements.

• How much does an energy assessment cost? Assessments range widely in price, and the more expensive ones can scare off a homebuyer or seller. However, many utility companies perform assessments either at no cost or for a nominal fee, and several states offer residents similar options.
• When should you recommend a home energy assessment? It's a good idea to discuss an assessment with your clients who want to enjoy the cost savings and comfort of a more energy-efficient home now, while making their homes more marketable to prospective buyers in the future. It also makes sense when working with homebuyers for whom energy efficiency is a priority or who are interested in buying homes that needs energy-related improvements.

Additionally, you can help clients navigate the Freddie Mac energy-efficient financing solution, GreenCHOICE Mortgages^®, that provide affordable loan terms to help homeowners finance energy-efficiency recommendations.

• Expand your knowledge, expand your client base. Given the increasing demand for energy-efficient homes, housing professionals stand to gain an edge with clients seeking this type of expertise.
  
  • Next steps for real estate professionals: 
    
    1. Look into the National Association of REALTORS^® Green Designation for agents who learn more about energy efficiency and sustainability.
    2. Work with a qualified energy assessor in your area to help your clients get started on energy-efficient home improvements.
    3. Expand your reach and help clients explore how Freddie Mac GreenCHOICE Mortgages^® can help affordably finance energy-efficient home renovations.
  • Next steps for lenders:
    
    1. Understand how GreenCHOICE Mortgages^® can help your clients finance energy-efficient home renovations to make their homes more affordable and sustainable. This financing solution makes it possible for homebuyers and homeowners to enjoy the benefit of more energy-efficient homes by rolling the costs of energy-saving home improvements into a purchase or refinance mortgage.
    2. Once the home energy assessment is completed, work with your clients to leverage the findings to figure out monthly mortgage payments and determine energy costs and savings for each improvement.