Realtors Successfully Lobby Against Mandatory Home Energy Labeling Law

by Rich Vetstein on August 2, 2016 · 2 comments

in Disclosures, Environmental Law, Home Inspections, Massachusetts Real Estate Law

Energy Audit

Energy Savings Law Would Have Required Energy Score On Homes for Sale

The 22,000-member Massachusetts Association of Realtors® (MAR) has successfully lobbied against a controversial provision within proposed energy saving legislation which would impose a new government energy inspection and labeling system on every home listed for sale. The Realtor group argued that one of the unintended consequences of the proposed labeling law is the negative impacts on Massachusetts’ old housing stock. Realtors assert that this especially would hurt low- and moderate-income communities where the homeowners cannot afford to make upgrades. The ratings could cause depressed values of those older homes as well, agents argued.

As reported on their Facebook page, MAR said that on July 31, legislators removed this language before releasing an updated version of the bill.

“Realtors® support energy efficiency and voluntary home improvement programs like Mass Save, which we already pay for through our utility bills. But if these mandatory energy inspections become law, the bill causes more harm than good,” said 2016 MAR President Annie Blatz, branch executive at Kinlin Grover Real Estate on Cape Cod. “This comes down to the unintended consequences of trying to mandate a one-size-fits-all approach. It will hurt the housing market for all homeowners, especially those low-income homeowners with older homes who can’t afford to improve their score prior to selling their home.”

“The idea that requiring a government energy label on your home is the same as a miles-per-gallon (MPG) rating on a new car that comes off an assembly line by the millions is a poor comparison,” said Blatz. “Every home is different and our Massachusetts housing stock generally is older, which makes that argument even weaker. Especially hard-hit will be homeowners who can’t afford to make upgrades, especially during such a complicated process as a home sale. Entire older communities could be stigmatized and lose value.”

From a market perspective, the bill as drafted would have further complicated an already complex process of buying and selling a home. Requiring an energy audit prior to listing a home will lead to home buying delays. Currently, the Massachusetts housing market is starved for homes for sale and Realtors feel that this bill would put one more roadblock in the way of needed inventory reaching the market. In addition, a home inspection is customarily not performed until the buyer is under contract to purchase a home.

 

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