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.

HERS Rating: Empowering Colorado Builders and Developers

Colorado is experiencing a surge in population, and with it comes a heightened demand for energy-efficient homes and buildings. To meet this demand, builders and developers in the state are turning to HERS ratings as a means to ensure their projects meet the highest standards of energy efficiency.

We’ve written a guide that covers everything you need to know about HERS ratings and why they matter to Colorado builders and developers. By understanding the ins and outs of HERS ratings, you can position yourself as a leader in sustainable and energy-efficient building practices.

What is a HERS Rating?

At its core, a HERS (Home Energy Rating System) rating is a measurement of a home’s energy performance. It provides a standardized assessment of a property’s energy efficiency compared to a reference home built to the 2006 International Energy Efficiency Code. This rating is represented on a scale from 0 to 100, with 0 being a zero-energy home and 100 being a home built to the 2006 code.

To determine a HERS rating, a certified HERS rater conducts a thorough evaluation of the property. This evaluation involves a combination of computer analysis, on-site inspections, and performance testing.

Key components of the assessment include the blower door test, which measures a home’s airtightness, and the duct leakage test, which evaluates the efficiency of the HVAC system. The HERS rater enters the collected data into specialized software which calculates a HERS score for the home.

A HERS rating serves as a valuable marketing tool, showcasing the energy efficiency and sustainability of a property. With the growing demand for green homes, a favorable HERS rating can attract more potential buyers and increase the market value of the property.

Why Does a HERS Rating Matter?

Benefits for Builders and Developers

Builders and developers in Colorado can benefit significantly from obtaining a HERS rating for their projects. Firstly, a HERS rating serves as a valuable marketing tool, showcasing the energy efficiency and sustainability of a property. With the growing demand for green homes, a favorable HERS rating can attract more potential buyers and increase the market value of the property.

Also, a HERS rating allows builders and developers to differentiate themselves from their competitors. By prioritizing energy efficiency and obtaining a HERS rating, they demonstrate their commitment to environmental stewardship and can position themselves as leaders in sustainable construction practices. An increasing number of local Multiple Listing Services (MLS) include a data point for the HERS Index, which is one more way for prospective homeowners to compare homes they are looking at.

Benefits for Homebuyers and Renters

Homebuyers and renters in Colorado also stand to gain numerous benefits from HERS-rated properties. Firstly, an energy-efficient home translates into lower energy bills, offering significant cost savings over the long run. HERS-rated homes are designed to minimize energy consumption, which leads to reduced utility expenses and increased affordability for homeowners.

Additionally, HERS-rated homes provide superior indoor comfort and air quality. Through rigorous inspections and performance testing, HERS ratings ensure that homes are properly insulated, have efficient heating and cooling systems, and maintain high indoor air quality. This translates into a more comfortable living environment and improved health for occupants.

It is important to note that the cost of obtaining a HERS rating in Colorado varies depending on the size and complexity of the project. However, the long-term benefits, such as energy savings and increased market value, outweigh the initial investment.

How to Obtain a HERS Rating in Colorado

Obtaining a HERS rating in Colorado involves a straightforward process that begins with selecting a certified HERS rater. These professionals are trained and accredited by RESNET (Residential Energy Services Network) to conduct HERS ratings. It is essential to choose a reputable and experienced HERS rater who understands the specific requirements and regulations in Colorado.

Once a HERS rater is selected, they will work closely with the builder or developer throughout the design and construction process. They will review the construction plans, conduct on-site inspections, and perform necessary tests to evaluate the energy performance of the property.

After completing the evaluation, the HERS rating software will assign a HERS score to the home, which can be used for marketing and certification purposes.

It is important to note that the cost of obtaining a HERS rating in Colorado varies depending on the size and complexity of the project. However, the long-term benefits, such as energy savings and increased market value, outweigh the initial investment.

HERS Rating in Denver and Fort Collins

While Boulder is at the forefront of requiring HERS ratings in Colorado, other cities like Denver and Fort Collins also recognize the importance of energy-efficient construction. Although HERS ratings are not mandatory in these cities, they provide clear guidelines and incentives for builders and developers who opt for HERS ratings.

In Denver, the City has outlined specific requirements for HERS ratings in their residential provision documents. While not mandatory, builders who choose a HERS rating for new construction homes must aim for a HERS score of 55 or less. Additionally, Denver offers a $150 discount on permit fees for projects that submit a HERS rating.

Fort Collins, on the other hand, does not have specific city-wide requirements for HERS ratings. However, the city encourages energy-efficient construction and offers resources and incentives for builders and developers to pursue HERS ratings voluntarily. These incentives include rebates, educational programs, and recognition for achieving energy-efficiency goals.

Fort Collins, on the other hand, does not have specific city-wide requirements for HERS ratings. However, the city encourages energy-efficient construction and offers resources and incentives for builders and developers to pursue HERS ratings voluntarily.

HERS Ratings in Colorado: A Catalyst for Sustainable Builders and Developers

In an era where energy efficiency and sustainability are paramount, HERS ratings have emerged as a crucial tool for Colorado builders and developers.

By obtaining a HERS rating, you can demonstrate your commitment to energy-efficient construction, attract eco-conscious buyers and renters, and increase the market value of your properties.

Whether you are building green in Denver, Boulder, Fort Collins, or any other city in Colorado, prioritizing HERS ratings will position you at the forefront of sustainable building practices and contribute to a greener future for the state. Embrace the power of HERS ratings and join the movement towards energy-efficient construction in Colorado.

Ready to explore the benefits of HERS ratings for your project?

Allow Green Insight to navigate the complexities of the process, handling paperwork, organizing meetings, and conducting performance testing to ensure you achieve a solid HERS rating.

Drawing on over a decade of experience and a track record of thousands of completed ratings, we’re here to guide you in optimizing your building’s energy efficiency within your budget. Get your free assessment today.