How Will Adding HERS Scores to the MLS Affect the Housing Market?

November 26, 2013

A recent news article raised an intriguing question: should Home Energy Rating System (HERS) Index scores be included in real estate listings, akin to details on bedrooms and bathrooms? Essentially, this means that alongside fundamental home features, buyers would also see a clear assessment of the home's energy efficiency—a bit like the familiar ENERGY STAR rating on appliances.

But why does this matter?

Energy costs significantly impact monthly budgets and affect the ability to manage mortgage payments. Understanding these costs and comparing them with other homes in the area helps buyers make informed decisions and plan their expenses effectively. Crucially, the HERS rating can also quantify the return on investment from energy-efficient upgrades. Unlike cosmetic improvements, such as new paint or fixtures, investments in energy efficiency directly impact ongoing heating and cooling expenses—the most substantial costs of homeownership.

Improving a home’s HERS rating can enhance its resale value in a practical and cost-efficient manner. One highly effective approach is to reduce energy demand. For instance, building with Thermocore SIPs will significantly lower energy consumption, thereby improving a home’s overall HERS score.

Incorporating HERS Index scores into real estate listings could potentially revolutionize how homes are evaluated and marketed, emphasizing long-term savings and sustainability as essential factors in home buying decisions.