Energy efficiency is important to home buyers and Chicago property listings that disclose energy costs close faster and at a higher percentage of the asking price, according to a study conducted by Elevate Energy.
Based on its findings, Elevate Energy found that there appears to be a correlation between a home’s energy cost and the actual selling price. “Energy costs are such a significant issue to home buyers it is a no-brainer for MRED to assist its real estate professionals in providing the most accurate and timely information,” said Rebecca Jensen, President and CEO, Midwest Real Estate Data (MRED). For example, the study revealed that single family homes sold eight days sooner than homes that did not disclose energy costs in the listing. But attached homes such as condos and townhouses fared even better. They spent 25 fewer days on the market, on average. This suggests that buyers prefer energy efficient homes and are choosing them first.
Millennials currently represent the largest generational group of home buyers and they prefer energy efficient homes. A recent survey conducted by the National Association of Home Builders (NAHB) bears this out as well. The survey revealed that energy efficient appliances were among the top features Millennials are looking for when buying a home. Programmable thermostats and low-E windows were also among their top ten features.
In addition, nearly seventy-five percent of millennials who participated in the survey indicated they plan to move within the next five years with slightly less than half preferring to own rather than rent. They also indicated a willingness to pay a two to three percent premium for an energy efficient home in return for lower utility bills.
The City of Chicago recently enacted an ordinance requiring all single family and two to four-unit properties to disclose energy costs to prospective buyers.
With a trend towards energy efficiency, real estate agents and brokers can gain a competitive advantage for sellers by providing them with simple tips to make their home more energy efficient and disclose energy costs in the property listing.