Freddie Mac: HERS Rated Homes Sell for More

Nov 08, 2019

A new study conducted by Freddie Mac determined that homes rated under RESNET’s Home Energy Rating System (HERS) between 2013 and 2017 sold on an average 2.7 percent more than comparable unrated homes.

The study “Energy Efficiency: Value Added to Properties & Loan Performance” also found that homes receiving lower HERS Index Scores sold for 3 percent to 5 percent more than homes with higher HERS Index Scores, and that buyers of HERS rated homes also have more desirable mortgage profiles than their counterparts seeking out unrated property.

The study was based on a random sampling of about 70,000 HERS rated homes, with credit bureau data on each of these homes plus five comparable unrated homes for each rated home, with a total of about 450,000 properties being analyzed. The report stated Freddie Mac “conducted this analysis to understand the value and the loan performance associated with energy-efficient homes to support the consideration of energy efficiency in mortgage underwriting practices.”

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Phil Hall

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Nov 08, 2019

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