How Will Adding HERS Scores to the MLS Affect the Housing Market?

This is a great question posed in a recent news article. There has been a national push to include Home Energy Rating System (HERS) Index scores in real estate listings (often referred to as the Multiple Listing Service, or MLS). In essence, a home’s energy performance will be included along with the number of bedrooms and bathrooms. That’s the equivalent of putting the yellow ENERGY STAR rating sheet, commonly seen on appliances, onto your home.

Why is this important? Energy costs directly affect your monthly cash flow and your ability to pay your mortgage. Knowing these costs and how they compare to other homes in the area helps identify the best deal and allows homeowners to budget all their expenses.

Most importantly, the HERS rating will help recoup the money you spend on energy-efficient construction. Items like LED lighting and energy-efficient appliances have no effect; a HERS rating only reflects heating and cooling expenses—the major costs in home ownership. Unlike other eye-candy types of upgrades, investments in energy-efficient construction can now be measured and shown as an asset to a home’s value.

The easiest and most cost-effective way to improve a home’s HERS rating—and increase resale value—is to lower energy demand. Of course, one of the easiest and most cost-effective ways to lower demand is to build with structural insulated panels (SIPs) like Thermocore.