Listings That Reveal Energy Costs Sell for More
April 21, 2015
Listings that disclose energy costs have a higher close rate, spend less time on the market, and sell at a higher percentage of the asking price than comparable homes that do not disclose such information, according to an analysis by Elevate Energy of homes for-sale in the Chicago area.
Factoring in Utility Costs
The study found that attached homes – either a condo or townhome -- that disclosed energy costs spent about 25 fewer days on the market compared to homes that did not disclose energy costs. Single-family homes that disclosed energy costs spent eight fewer days on the market.
Researchers found that, on average, an attached home that was listed for $352,000 would have sold for $4,576 more if the listing had disclosed the home’s energy costs.
The City of Chicago became the first city nationwide in 2013 to allow direct disclosure of residential energy costs – gas and electric – on the multiple listing service for single family or two- to four-unit homes listed for sale. In response, the Midwest Real Estate Data, the Chicago area's multiple listing service, as well as city officials launched an "Energy eCompliance" tool to help listing agents in Chicago provide buyer agents and home buyers with an energy cost disclosure report for properties, available online.
"Energy costs are such a significant issue to home buyers it is a no-brainer for MRED to assist its real estate professionals in providing the most accurate and timely information," says Rebecca Jensen, MRED president and CEO. "At the same time, we are enabling our listing brokers to comply with the City of Chicago ordinance. A win for everybody, especially the consumer, and we are pleased to be a nationwide leader in this arena."
Source: "Analysis Indicates Chicago Homes that Disclose Energy Costs Have a Higher Close Rate," Midwest Real Estate Data (April 20, 2015)
Updated: February 26, 2020