Benefits

Builders of energy-efficient homes are producing higher quality homes than many of their competitors. This offers market advantage, decreased callbacks, and demonstrates customer and community commitment. Energy-efficient homes often qualify homebuyers for special mortgage packages, increasing the buyer pool, and Home Energy Ratings can sometimes be used to lower regulatory costs.

Market Differentiation

An energy-efficient home allows market differentiation and gives builders a feature to “sell” in addition to traditional items such as layout and kitchen design. For example, the E-Star Home Energy Rating Report shows potential buyers how much money they will save each year in gas and electricity bills compared with a typical Colorado home. Buyers can also see the benefit to the environment since the Rating Report provides information on the amount of air pollution avoided as a result of the energy-efficient home. Builders can use these cost-savings and environmental benefits to appeal to consumers searching for that “just right” home.

Increased Buyer Purchasing Power

Buyers of new homes that rate 80 points or higher on the E-Star scale can qualify for Energy Efficient Mortgages offered through Fannie Mae and other lenders. An Energy Efficient Mortgage increases the amount of money a consumer can qualify to borrow. This means that a builder can sell energy-efficient homes to those who would not ordinarily be able to buy them.

Fewer Callbacks

An E-Star energy-efficient home rated has undergone a thorough, third-party evaluation by an Energy Rater. The Rater checks on the quality of work performed by craftsmen and laborers. This process greatly reduces the incidence of construction defects and costly callbacks. The risk of litigation is also lowered since the buyer of a home receives a higher quality product. A home free from defects translates into a higher profit margin for a builder.

Lower Regulatory Costs

A favorable E-Star rating can lower the cost of building permit fees. Some jurisdictions offer rebates on building permit fees for E-Star-rated homes that receive a designated score. This lowers development costs and creates closer ties between a builder and code officials.

Demonstrates Commitment

A builder of energy-efficient homes demonstrates a commitment to the best interests of a community. This is true because energy-efficient homes create less of a drain on the local utility, protect the environment, and create healthier neighborhoods for all residents.