Why Perform a Residential Energy Audit Before Buying a Home?

Most smart home buyers will schedule home inspections before buying a house. It may even be a requirement. But buyers can get even more information by scheduling a residential energy audit. They can find potential problems and avoid expensive repairs while also negotiating for a lower purchase price.

Inspectors look for major foundation problems and issues with existing systems such as roofing and electrical or plumbing systems. They also look for safety hazards. An independent home inspection (avoid using the inspector your real estate agent recommends) is invaluable.

Residential energy audits are a less common practice, but they can also be valuable. In general, an energy auditor performs a range of detailed tests to determine the "thermal performance" of the house. Essentially, that means how much extra energy a homeowner wastes to heat and cool the house.

This is clearly important to environmentalists trying to reduce their carbon footprint and use less energy. Home buyers considering installing wind or solar power on their properties should pay particular attention to the thermal performance. The renewable sources won't be as powerful or consistently reliable as the coal-fired power plants that likely power standard electrical systems. Therefore, energy savings will be even more important (read these stories for more considerations for home buyers regarding the installation of solar or wind energy systems).

Even those less concerned about global warming or coal use should look for the financial savings of a more energy-efficient house. The thermal performance of a home is a significant factor in energy bills. Small steps and inexpensive fixes can save money. It may give the home buyer peace of mind to know the thermal performance can be cheaply and easily improved.

On the other hand, some fixes are not so small and not so inexpensive. If the walls are inadequately insulated, it is difficult or even impossible to add insulation to existing insulation. However, insulation is relatively easy and cheap to install in attics or crawlspaces.

Similarly, the heating system may be old or in disrepair. A residential energy audit can show a home buyer any small gaps in the ductwork. The buyer will quickly know there is an easy and cheap fix. An old or poorly operating furnace is a larger and more expensive problem. Likewise, old and damaged ductwork can be a hassle to replace or repair.

A home buyer might be able to use such problems as leverage to negotiate a lower purchase price. Particularly in the current buyer's market, the leverage can be valuable.