Thou shalt be efficient.

Thoughts on the proposed mandatory energy audits.

Legislation in the works in Ontario that would require a homeowner to conduct an energy audit before selling their house. “Thou shalt be efficient”. The idea is that the owner does the audit, then does all or most of the suggested improvements to make the home market-attractive. Alternatively, a “poor” audit could lead to a reduced selling price, leaving the buyer with more money to make the improvements.
The vision and intent are admirable. We know the climate change issue is real and that houses are often leaky energy-wasters. We are actually certified NAGAB “Green” agents so we should probably be behind this. But …

• Who’s going to do the audits? There is even now a shortage of good qualified auditors. A sudden demand for a whole whack more audits every year would strain the resource and lead to any number of scams and misuse.

• The timing will be problematic. There is a lot to do to get a home ready for market. The homeowner has repairs, decorating, clutter purging, staging and whatever to do. All sorts of other logistics must be dealt with in the owner’s probably-non-existent “spare time”. All this, plus paperwork, photos, measuring, maybe floorplans and videotours, advertising on a deadline, etc. are being done, usually with a tight target date for “hitting the market”. It’s hard enough already without scheduling an energy audit and then trying to schedule (and pay for) whatever “fixes” seem appropriate to have the audit help, rather than hinder, the sale.

• What about a weak audit? If the seller reduces the price rather than doing the suggested work, will the buyer actually use that money to improve the home’s efficiency?

• What about the overall home inspection? If an energy audit is mandatory, why wouldn’t a whole systems and structural inspection also be required? Not saying I agree with either being legislated, but I have trouble seeing why an owner should be legislated into pointing out that the attic is a little light on insulation when he/she is not required to point out a substandard electrical system, or a weight bearing wall removed in a recent renovation. Which would you be more interested in knowing?

At home-buying time, energy efficiency, I think, is a little like taxes and utility costs are now. It’s good information to know. But they can become distractions from critical “deciding factors” in which home that person decides to buy. Similarly, I think an energy audit would be, for some, a distraction in an already stressful process.

Existing programs allow us to get good rebates and credits on home efficiency improvements. Current owners have access to these grants. New owners have access. It’s good stuff to do. But on balance I don’t think mandating these audits makes sense at this time.

How about an extra incentive or rebate for doing an energy audit and/or improvements, if done within a year of buying? My guess is this would get more done and take away a distraction and largely ineffective requirement from the actual buying/selling process. What do you think?

One Tree-ific Deal... and one not so good.

Spring is in the air. Want a tree? Go HERE for a way to get a free tree on your boulevard, etc. or a good deal on a tree for your yard.

Want to save some money on electricity or gas? DON'T sign up with anybody who shows up at your door. CBC's Marketplace just did a hidden camera thing and Direct Energy, Universal Energy, and the others by implication didn't come out looking very good. If you do want to explore possibilities for energy contracts, try energyshop.com for some objective advice and the ability to choose the option that suits your needs.

The Federal Budget -- more of your money for you

As noted in a previous post, there is money available to you from government programs for energy efficiency upgrades.

The new federal budget added a tax credit for renovations that goes beyond specific energy upgrades -- just do something ! spend money ! hire somebody ! NOW ! ... you get the idea. Here is a useful Q&A on how the HRTC (Home Renovation Tax Credit) works: http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html

While we're at it, here are a couple more info documents on budget stuff that relates to real estate:

... Not Really First-Time Home Buyers Tax Credit (you can actually quality if you haven't owned a home recently)

... Looting your RRSP to help with a home purchase (OK, they call it the Home-Buyers Plan , and it does make sense FOR CERTAIN PEOPLE, but be careful...)

"Saving Money while Saving The Planet"

The title is stolen from a CarsonDunlop report. If you are looking for a good summary of all the grants currently available for doing energy efficient upgrades (furnace, air conditioner, insulation, windows, even toidies !), you may want to start at a good CarsonDunlop page .... http://www.carsondunlop.com/ecoenergy/rebates.html

As you will see, it's not just the feds giving grants. The Province, provincial and municipal electric utilities, Toronto Water, and gas utilities are all giving loot out in different ways for different things. It's your money, go get it!

Nothing is exactly free here -- all will require a pile of your money too. But they make the changes easier and will save you money every month on your utility bills while doing less damage to our one-and-only world.

By the way, we are just completing our training and will become certified "NAGAB" green agents. It doesn't mean we will show up with a hammer, but we will have a lot of information to help you determine what you might be buying or what you should consider doing.

[UPDATE: ANOTHER GOOD PLACE TO CHECK OUT THE FED/PROVINCIAL OPTIONS: http://www.homeenergyontario.ca/]

"Granted", it's not free but it IS a good deal...

If you've been thinking about energy costs and conservation, you may have some reno or upgrade projects in mind. Perhaps you've just bought a house that needs a little work, or are getting your own place ready to sell in the next few years, or the thought of firing up the old furnace in the Fall is keeping you awake at night.

You may have heard that the federal government is doling out money to help. You're right. The basic idea is you get an evaluation done. They "qualify" you for certain improvements. If you make thos improvements, they come back to check and you get a government cheque.

One small caveat: The companies doing the evaluations are often also in the business of doing the improvements. They may or may not be your best contractor option. You should probably do a little shopping before just blindly signing on with the evaluators' firm.

That said, here's where to go for the program info