Recently California Association of REALTORS® successfully did some heavy lobbying against a bill that would have forced “point of sale energy audits.” To over simplify it, the bill would have made it so that all residential sales would need to be inspected for energy efficiency before closing. Many good arguments were made on both sides of the question.

I am torn on the point of sale energy audit issue. On the one hand, I can step back and say: Every home sold should have an energy audit; both sides should have a clear understanding of the house’s efficiency. On the other hand, in today’s market HERS are a great tool to set us EcoBrokers® and “Green” agents apart from the run of the mill agents that will not know to push for an inspection to help their clients. In this I see a parallel to the open MLS issue. Do “we, in the club” get to use this tool to our advantage, or is this tool so intrinsically important to everyone that everyone should just have it?
 
I don’t think the public is demanding this info yet, and until “we” all want this, forcing it will be an unwelcome intrusion for most (and also affect a great moneymaker for some). 

As for the cost, this, like the supposed cost of all green improvements, is a situation where people miss the point. To say that this would be too expensive for the market to bear, only looks at the surface of the system. Much of the money that is spent in “greening” stays local due to the fact that much of it is labor. That money moves around generating value and buying power for people. Making the pie bigger.

Just think of all of the energy inspectors that would be able to buy homes due to the jump in business. They would also buy groceries, cars, meals, legal help, and books, or whatever. In other words, these would be good jobs created locally.
 
I think we all need to look at real estate as a long-term investment and each aspect of it in that light. In the long run will it be better to _________ than leave it the way it is right now? Fill in the blank with whatever change you want to question: Have every sale inspected, Do that pricey (but in the long run money saving) energy improvement, Get a solid reasonable loan, whatever.
 
I know my “socialist” is showing a bit on this one. It’s just that this is the way I see the question.

What do you think?

Michael Pulskamp face picture fade blue to yellow Michael I. Pulskamp

Mainstreet Brokers

Amador County Real Estate

 
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5 Comments on Energy audits?

JUN
21
2008
156,682 Points 7 Featured Posts Outside Blog

California is a funny place. The fact that time is spent on these issues in Sacramento should outrage residents.

10:19am • #1
Localism Sponsor

California is not the only place.  I know a Portland agent who is lobbying hard against POS inspections there too.  I believe various types of greening legislation is happening in many parts of the country, not just here. 

I also feel that a large percentage of Californians support the efforts being made to reduce our overall carbon footprint and energy consumption.  I don't know what energy bills are like in TX, but in Truckee, where most of our conditioning is for heating, we have some older very small houses that are spending upwards of $800. per month for electric heat in the winter months.  Fortunately, we don't have to spend $$$ cooling in the summer as our temperatures are very moderate.  In Napa, my fiance has a small cottage with electric heat in winter and air conditioning in summer and the electric bills run over $600. per month.  It wouldn't take long for some simple retrofits to offset those costs and then the benefits would be there for a long time.

10:31am • #2

I am pro green and not a socialist, so maybe we will look at this a little differently.  As I see it, doing the audit prior to closing would be similar to the disclaim/disclose question.  I don't understand the issue fully, as I have not read the bill nor do I live in CA, but most lawmakers seem to build in loopholes, so there should be a certain percentage of folks who would be exempted.

I like the local economy boost angle, and tradesmen certainly need work in this market, but I'm not sure if an enforced energy audit is the best way to go.  Is there an infrastructure in place that can handle that kind of inspection volume?  I mean, California is a big state and there are a lot of transactions there.  If there are a limited number of inspectors it could seriously affect closing schedules, which is discriminatory for both buyers and sellers.

Also, if there were a shortage of inspectors, the mad rush to sign up new ones might result in a poorer quality inspection.  That might be worse than the solution!

I like the idea, but I'm not sure the time is right.  It seems like it would be smarter and more efficient to offer a tax break for existing homeowners to get an energy inspection that could then be attached to any future sale report.  Possibly even a tax break for an energy inspection every three years or so.

Just my $.02.  Interesting post.

10:51am • #3
188,739 Points 2 Featured Posts Outside Blog

I like the tax break idea.  I need to do this anyway, as I HATE paying so much money for my electric bill.  I am also going to work toward solar when I can afford it.  Tamara - Those heating bills are outrageous!  Where I am I get hit with big bills in the summer.  My bill will go from 130 to over 300 just keeping the air at 85 so none of the pets (or people) overheat.  It makes me furious.

Chris

3:12pm • #4
JUN
25

I think tax breaks are a good idea. I am constantly looking for ways to reduce our energy consumption, but it always seems too expensive for minimal return on investment. I found a great inexpensive CD packed w/ energy saving info and energy auditing info. I found it on ebay for $25, but they also sell it off their site for less. If you are interested, it's at: www.cirtc.com/IESCD.html

I first thought why spend money on something where most of this info is free, but I found this to be the most informative I have read. Definetly worth the $25 IMO.

Jim

  

Jim Mc Aleer
12:26pm • #5

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Michael I. Pulskamp REALTOR®, EcoBroker®, GREEN desingnee

Jackson, CA

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Mainstreet Brokers

Address: 24 Mainstreet , Jackson, CA, 95642

Office Phone: (209) 257-4590

Cell Phone: (916) 802-5896

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Michael I. Pulskamp of Mainstreet Brokers in Jackson, CA. Rambles on and shares thoughts about Real Estate, Amador County, Green homes, and foothill life in Northern California. buying and selling houses these days is anything but simple, you want a professional on your side. Finally Amador County has a real estate professional with the training and awareness to help you with green/efficiant real estate. That Amador County real estate pro is Michael I. Pulskamp. Lic. #0174833

AMADOR COUNTY"S FIRST ECOBROKER

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