Want Top Dollar for Your Home? Use Less Energy?!

Montgomery County REALTORS have just been handed a new addendum to the Contract of Sale. It's the Utility Cost and Usage History Disclosure Form and sellers now have to disclose, by law, in writing what their utility bills were for each of the last 12 months. That includes kwh's used, gallons of water, and amount of heating oil.

It's a pretty interesting concept that you now have to disclose how much energy you use. And, the amount of energy you use could affect the value of your home, assuming that you leave lights on and keep the heat or A/C going. This addendum serves to inform the buyer of how much they are really going to need to budget for utility bills, also it lets the buyer know if the home is energy efficient. If it's not, that will definitely affect it's value.

A good rule of thumb is that every thousand dollars financed at 6% is roughly $6.00 per month. Let's say that two houses are priced at $300k, but homeowner A discloses that he spent $100.00 a month more on average utility bills than homeowner B. $100 per month translates to an additional $16k mortgage. So, you could say that if you buy home A, you will be paying for a home that costs $16k more. So if the homes are equal in features and condition otherwise, home A is $16k overpriced.

I know there is a more to it, but at it's base the numbers are true. Now buyers are going to make offers on your house depending on how much energy you have used for the past 12 months.Operating expenses are now more important than ever. Want top dollar? Use less energy!