Energy Efficiency Factors Will Begin Showing Up in the NW Arkansas MLS

An energy efficient home can save its owner thousands of dollars over time. That fact cannot be stressed too often. If you’ve been thinking about becoming ‘greener,’ you already know what I’m talking about.

If you haven’t given it much thought but you’re thinking about buying a new or resale home, you may want to consider the overall, long-term cost of homeownership. There are many factors to consider in addition to the initial sales price. Let’s say there are two similar homes for sale in the same subdivision. One has added insulation and Energy Star appliances and the other does not. The home that has been upgraded will probably be listed at a higher cost but the savings in utility bills after a few years will ultimately be the better buy.

Until very recently the problem was that local real estate agents had no way to search the multiple listing site for energy efficiency. That is beginning to change.

Realtors® can now specify certain features of a home when they post the listing on MLS. For example: Energy Star Certification, low-flow faucets and shower heads, energy-efficient windows and roofs, and the all-important R-values for insulation, just to name a few. R-value means resistance to heat flow of a given material. The higher the R-value, the better the insulation and the lower the utility bills. Different sections of a structure (ceilings, walls, and floors) generally require different R-values to be considered energy efficient. Ceilings require a higher R-value than floors or walls because heat rises.

As listing agents become familiar with the new search criteria possibilities and enter this information into the MLS, buyers’ agents will have more thorough information to help their buyers make the best decision. Most of these green criteria will not appear in consumer-oriented home-search websites.

Since I specialize as a buyer’s agent, I would be happy to help you make the best long-term decision for your next home. Call me if you have questions or are thinking about purchasing a home in the near future.

Did you know it's possible to get an Energy Efficient Mortgage?

Energy Efficient Mortgage (EEM) is one of many FHA programs that insure mortgage loans. The mortgages are actually made by many banks, savings and loan associations, and mortgage companies, and the loans are covered by EEM insurance through FHA.

The idea behind the EEM program is to help achieve national energy-efficiency goals and reduce pollution as well as to provide better housing for people who might not otherwise be able to afford it.

The program considers the anticipated savings on monthly utility bills when a buyer purchases an energy-efficient home.

For example, let’s say the utilities in an older home you are considering will cost $200 a month and you qualify for a mortgage payment of $700/month but if you buy a certified energy-efficient home instead, the utility expense will be only $100/month. Now you can qualify for an $800 monthly mortgage payment.

This is a very simplified explanation but I hope it’s sufficient to give some serious consideration to an EEM.

Other provisions of the program are geared to adding energy efficient improvements to an existing home – one you already own or one you are considering buying.

Click on the links below for more details and technical information, such as maximum amounts, who qualifies, and how to get an EEM:

http://www.arkansasbusiness.com/article.aspx?aID=104162.19830.116304&view=all
http://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm
http://www.huduser.org/periodicals/ResearchWorks/ResearchWorks_Mar06.pdf
http://www.hud.gov/offices/hsg/sfh/203k/203k--df.cfm