The Impact of HERS Ratings on the Multiple Listings Service (MLS)

HERS Ratings in the MLS: The Multiple Listings Service (MLS) is a valuable resource for real estate agents and buyers, providing comprehensive information about homes for sale. 

While the MLS covers various aspects of a property, energy efficiency ratings were notably absent until recently. 

In many markets, the Home Energy Rating System (HERS) Index has been incorporated into the MLS, allowing owners of energy-efficient homes to showcase their properties and enabling buyers to search specifically for energy-efficient homes. 

Let’s explore the significance of HERS ratings and their integration into the MLS, highlighting the benefits to sellers and buyers.

What is a HERS Rating?

A HERS rating is a standardized measurement of a home’s energy performance compared to a reference home built according to the 2006 International Energy Efficiency Code. 

It is represented on a scale from 0 to 100, with 0 indicating a zero-energy home and 100 representing a home built to the 2006 code. 

Certified HERS raters conduct a comprehensive evaluation of a property, combining computer analysis, on-site inspections, and performance testing to determine its energy efficiency. The lower the HERS Index, the more energy-efficient the home.

“A HERS rating stands as a powerful marketing asset, spotlighting a property’s energy efficiency and commitment to sustainability. Given the rising interest in eco-friendly homes, a positive HERS rating has the potential to draw in a broader pool of prospective buyers while simultaneously enhancing the property’s market value.”

Integration of HERS Ratings in the MLS

Recognizing the importance of energy efficiency in the real estate market, many MLS systems have incorporated HERS ratings as a category within their listings. 

This addition allows sellers to highlight the energy efficiency of their homes, attracting environmentally conscious buyers and potentially commanding higher prices. 

The availability of HERS ratings in the MLS empowers buyers to search for energy-efficient homes, making it easier for them to identify properties that align with their sustainability goals.

Benefits of HERS Ratings in the MLS

The inclusion of HERS ratings in the MLS offers several advantages for both sellers and buyers.

1. Energy Efficient Mortgages (EEMs)

A significant benefit of obtaining a good HERS rating is the potential eligibility for an Energy Efficient Mortgage (EEM). Homebuyers can qualify for larger mortgages based on their low HERS rating, indicating an energy-efficient home. As energy-efficient homes consume less energy, the associated cost savings can qualify buyers for EEMs, providing financial incentives to invest in energy-efficient properties.

2. Added Value and Higher Prices

A good HERS rating enhances the value of a home, potentially leading to higher sale prices. Energy-efficient features contribute to reduced utility costs over time, making the property more attractive to buyers. The addition of HERS ratings in the MLS allows sellers to market their homes as energy-efficient, appealing to a broader audience and potentially commanding higher offers. 

“A good HERS rating enhances the value of a home, potentially leading to higher sale prices.”

3. Quicker Sales

Energy-efficient homes are in high demand, and the availability of HERS ratings on the MLS expedites the sales process. Buyers interested in energy-efficient properties can specifically search for homes with low HERS ratings, saving time and effort. By showcasing a home’s energy efficiency through its HERS rating, sellers can attract motivated buyers, leading to quicker sales and a smoother transaction process.

4. Competitive Advantage

In a competitive real estate market, having a good HERS rating sets builders and realtors apart. Buyers increasingly prioritize energy efficiency, and a favorable HERS rating gives conscientious buyers a reason to choose a particular property over others. By emphasizing energy efficiency through HERS ratings, builders and realtors can differentiate themselves, attracting buyers who value sustainability and reducing their carbon footprint.

“With the addition of HERS ratings, sellers can showcase the energy efficiency of their homes and potentially command higher prices.”

HERS Ratings in the MLS and its Impact on Real Estate

Integrating HERS ratings into the MLS has significantly impacted the real estate industry, benefiting both sellers and buyers. With HERS ratings, sellers can showcase the energy efficiency of their homes and potentially command higher prices. Research shows that buyers will pay more for homes with high home energy scores.

Buyers can easily search for energy-efficient properties, saving time and making informed decisions. The availability of HERS ratings in the MLS promotes sustainability, incentivizes energy-efficient home construction, and contributes to a more environmentally conscious real estate market. 

As the demand for energy-efficient homes continues to rise, the integration of HERS ratings into the MLS ensures that energy efficiency remains at the forefront of the home buying and selling process.

Ready to unlock the advantages of a HERS rating for your project?  

Let Green Insight take the helm in simplifying the process. We manage the paperwork, coordinate meetings, and execute performance testing to achieve a solid HERS rating

With decade-long expertise and a history of thousands of accomplished ratings, we stand ready to assist you in fine-tuning your building’s energy efficiency while staying within your budget. 

Get your free assessment today.