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What is a Home's "HERS" rating and What Does It Mean?

By
Real Estate Agent with Colorado Landmark, Realtors CRE #100007132

What is a Home's "HERS" rating and What Does It Mean?

 

A HERS is a Home Energy Rating Score based on the HERS Index. The HERS Index is a scoring system which was established by the Residential Energy Services Network (RESNET).    Basically a net zero energy home would receive a score of "0" and a home which was built to the specifications of a HERS Reference Home would receive a "100."

A lower score is better..........Each 1% reduction in energy consumption, corresponds to a 1-point decrease on the HERS Index. In other words a home with a HERS Index of 60 is 40% more energy efficient that a home with a 100 HERS Index and a home with a 70 HERS Index is only 30% more efficient.

So how is a home rated and on what criteria?  A home is rated by a qualified Home Energy Rater who uses a energy efficiency software package to perform a complete analysis of a home.  A pre-construction HERS Index is given to new homes being constructed based on a thorough study of the building plans and design.

An Home Energy Rater can work with builders and identify the improvements necessary to ensure their homes will meet the ENERGY STAR performance guidelines.  Keep in mind that an existing home can also be evaluated and given an HERS rating.

An energy efficient home not only improves our environment and save a home owner money in utility bills, an energy efficient home can also increase the purchasing power for the purchaser.  Approved mortgage lenders can offer either a Conventional Energy Efficient Mortgage an FHA Energy Efficient Mortgage or a VA Energy Efficient Mortgages. (Read more about the specific limits based on loan type.)

Energy efficiency is becoming more and more important to home purchasers of not only new homes but existing homes.  And in Boulder County, the desire for energy efficiency seems to be an an all time high.  Here is a list of some of the ways in which a home's energy efficiency can be improved:

  • Using Energy Star Qualified Appliances
  • Selecting High Performance Heading and Cooling Systems (or replacing old heating and cooling systems). 
  • Installing programmable thermostats
  • Selecting carpets, paints and finishes with Low VOC (Volatile Organic Compounds)
  • Using high performance, water efficient plumbing fixtures
  • Using CFL lighting (compact florescent lighting)
  • Installing high performance windows
  • Increasing or adding to existing insulation with spray foam insulation.

Ask your Real Estate Professional about the energy features of your home and about any home you may be considering to purchase.  Our multiple listing service now allows listing agents to include the energy features of our listings.

(Note:  Image courtesy of Microsoft Office)

 

Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

I recently learned this from one of my clients!!  Thanks for your post, it's very informative.

Mar 24, 2011 02:16 PM
Sophia Lin
Intero Real Estate Services - Sunnyvale, CA
Sunnyvale CA Real Estate Specialist

Very interesting, I guess you learn something new everyday.  When I saw "HERS", I automatically thought it meant something that had to do with a "she".

Mar 24, 2011 02:16 PM
Mary Douglas
United Country Ponderosa Realty, Red Feather Lakes, Colorado - Red Feather Lakes, CO
REALTOR, Red Feather Lakes, Colorado

Hi Vickie, You are right, energy efficiency is becoming more and more important in today's world.  I like the new addition of that info in the MLS also.  Great post and information!

Mar 24, 2011 02:23 PM
Shawna Green
Keller Williams Realty-Fayetteville - Fayetteville, NC
The key to your real estate needs!

Vickie, great post!  Going "Green" is really starting to catch on here.  Thanks for the info on HERS.

Mar 24, 2011 02:36 PM
Vickie Slade
Colorado Landmark, Realtors - Boulder, CO
Service You Can Trust ~ Someone You Can Depend On

Joy, we have a number of builders here that are listening to consumers and making "energy efficiency" a priority.

Sophia, it is an ever-changing world we live and things are changing sooooooo fast.  It's hard to keep up with it all.  You should see all of the energy-saving changes many existing homeowners are making to their homes here.

Mary, I agree with you.  The additional fields on the MLS are really helpful in helping clients both benefit from the energy features they have added to their homes and in assisting us in locating homes for clients who have "energy efficiency" as a priority on their search list.

Shawna, it seems to be catchig on in a lot of areas, it's good for all of us.

 

Mar 24, 2011 03:47 PM
Ruth Vogt
Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate. - Colorado Springs, CO
719-592-0855 www.ReverseLoansInColorado.com

Oh my. Just when we get used to the 47 million other rankings or testings or readings, there is another one. This is as complicated as the mortgage rules and regulations that seem to change by the minute!! BUT, we were exploring a week ago a scanning process of original docs that requires NO PRINTING, which mean NO PAPER and for the mortage business, that is huge! Go green!!

Mar 24, 2011 06:00 PM