Financial

HERS, or Home Energy Rating Systems

A HERS report is similar to a miles-per-gallon rating on a car. HERS are programs which provide evaluations of individual homes’ energy-efficiency. A HERS report is prepared by a trained Energy Rater. Factors such as insulation, appliance efficiencies, window types, local climate, and utility rates are used to rate the home and calculate energy costs.

A HERS Report includes:

• Overall Rating Score of the house as it is
• Recommended cost-effective energy upgrades
• Estimates of the cost, annual savings, and useful life of upgrades
• Improved Rating Score after the installation of recommended upgrades
• Estimated annual total energy cost for the existing home before and after upgrades

Rating scores are between 1 and 100. Higher scores indicate greater efficiency. Cost-effective upgrades are those which will save more money through energy savings than they cost to install.

The U.S. Department of Energy recommends Home Energy Ratings that contain three aspects: a numerical score from 1 to 100, a one to five star-plus rating, and the estimated post-installation energy costs. Higher scores indicate greater efficiency. Cost-effective upgrades are those which will save more money through energy savings than they cost to install.

A HERS rating usually costs between $100 and $300. This could be paid for by the buyer, seller, lender, or real estate agent. Sometimes the cost of the rating may be financed as part of the mortgage. No matter how the rating is paid for, this investment could save you or your buyer hundreds of dollars each year on your EEM.

It is best to have the HERS Rating done as early in the loan process as possible. The Rating can be performed while other aspects of the loan are being processed. In effect, closing the loan will not be delayed.

Valyceum Estates Office: 585-777-4116 | Fax: 585-777-4108
250 Mill Street, Suite 500
Rochester, NY 14614
contact@valyceum.com

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