HERS® rated homes with low HERS® Index scores are more energy efficient than standard homes. This translates into increased home comfort, lower utility costs and a more environmentally friendly home.

Many homebuyers neglect to look at how much a home will cost to run when shopping around. However, the truth is that buying a home means more than just making the monthly mortgage payments. Energy costs play a significant role in determining the affordability of a home.

Although consumers are able to easily shop for cars and appliances based on their efficiency thanks to Energy Guide labels and MPG stickers, this is still not the case for many homes in the United States. However, HERS® rated homes have HERS® Index scores, which tell homebuyers at a glance how energy efficient those homes are. And that means they can make informed decisions when choosing a home.

As buyers become more aware of how useful the HERS® rating is to their buying decisions and estimating monthly energy costs, sales data will quickly show why a property sold for more with a low HERS® rating compared to a similar house with a higher HERS® Rating. In fact, a recent study by the North Carolina Building Performance Association showed that homes with lower HERS® Index scores sold for as much as 9.5% higher in North Carolina’s major metro areas, compared to homes that were not rated.

A report by the University of North Carolina’s Center for Community Capital, and the Institute for Market Transformation (IMT) titled, “Home Energy Efficiency and Mortgage Risks” (March 19, 2013) found that mortgage default risks were 32% lower on ENERGY STAR labeled homes with lower HERS® Index scores. To read the complete report, go to Home Energy Efficiency and Mortgage Risks to download a copy.