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“Finding and saving money for your clients elevates you from a real estate agent to a real estate professional,” Eileen Oldroyd, broker-owner of Oldroyd Realty in Mission Viejo, Calif., said Saturday at a sustainability session during NAR NXT, The REALTOR® Experience, in Boston. And agents are well-positioned to help address a key pocketbook issue for consumers: utility bills.
There’s a method to Oldroyd’s thinking: 82% of home buyers say heating and cooling costs are “very” or “somewhat” important, according to the National Association of REALTORS®’ 2024 Profile of Home Buyers and Sellers.
Addressing that issue doesn’t need to be cost-prohibitive for clients. They don’t necessarily need solar panels or new windows; they don’t even get the best return on investment—at least not in the short term, Oldroyd pointed out. Projects like air sealing and adding insulation will see a higher ROI, she added.
“Our homes leak everywhere,” she said. “Look at your doors and windows. If you see daylight through top or bottom, it’s leaking.” And if a home is older, it likely isn’t properly insulated or the insulation may have deteriorated.
Since insulation and most leaks aren’t visible, agents can recommend a home energy assessment to clients. A certified energy auditor analyzes a home’s energy use and efficiency and gives the owner a score and list of improvements. “The auditor will ask things like how many people live in the home, what the utility bills are and how old the appliances are,” she said. “They’ll also do visual inspections of things like the ductwork.”
Listen to the “Drive With NAR” podcast to learn what goes into a home energy audit.
Auditors may use tools like infrared cameras on the interior and exterior of the home to visually see where heat is escaping (redder areas indicate greater heat loss) and blower door tests, which measure how airtight the home is. “Many times, your utility company’s website will have a link to certified energy auditors,” Oldroyd said. In addition, homeowners can claim 30% of the cost of the home energy audit up to $150 on their federal income tax.
Alternatively, homeowners can conduct a DIY inspection. Energy.gov offers a home audit checklist that walks you through an assessment. Oldroyd has even used incense to find the origin of a draft in her home. “If a breeze is going through the house, you can see which way it’s blowing based on the smoke. We followed the draft. It was from the doggy door,” she said. “Today, you can find insulated doggy doors.”
Some key tasks to seal and protect your home:
- Plug and caulk holes caused by penetrations at electrical outlets and the dryer duct.
- Use weatherstripping to seal window and door leaks.
- Add blow-in insulation through small holes in the drywall, which are easily repaired.
- Insulate attics and crawlspaces.
- Outside, use spray foam insulation to fill holes.
- Install a programmable thermostat.
- Hang thermal drapes.
- Have an annual HVAC checkup to ensure proper performance.
- Change furnace filters regularly. “Clients can get them delivered on a schedule,” Oldroyd said, so it becomes second nature. Plus, filters make a smart closing gift.
Finally, remind clients they can reduce their tax bills with federal tax credits for energy efficiency upgrades. For instance, taxpayers can claim 30%—up to $1,200—for improvements like new energy-efficient windows, doors, skylights, water heaters and furnaces. Those who upgrade to heat pump technology, a more efficient way of heating and cooling than traditional systems, may qualify for 30% of their costs—up to $2,000. Some of these credits can be combined for a total allowance of $3,200 in one year.
To find any local rebates, enter a ZIP code in the Energy Star Rebate Finder.
