June 1^st is just around the corner.  That’s the date when Austin’s new Energy Conservation Audit and Disclosure Ordinance (a.k.a the “Point of Sale Ordinance”) will go into effect.  I’ve been going to as many meetings and discussions as possible, to make sure I’m on top of this for my clients, and it has been a wild ride!  I’m going to skip the dramatics and namecalling, and just try to summarize the process here.

The ordinance, as it pertains to ordinary single family homes with 1-4 units, essentially requires that sellers obtain an energy audit and disclose the results of that energy audit to potential buyers.  The ordinance requires this audit to be disclosed prior to the closing of the sale, but in practice this audit should be completed before the home goes on the market and attached to the general Seller’s Disclosure Notice, which is already required. 

Due to input from the local Realtor community and private property rights advocates, there is nothing in the final, approved ordinance that requires the actual implementation of any energy efficiency measures. That will be negotiated, much like other repairs, between the buyer and the seller. After two years, the city council will revisit the program, and measure the results in terms of increased adoption of energy efficiency measures.  Of course, since the whole idea is to increase energy efficiency retrofits in existing homes, the implication is that the program could be changed in two years to actually require specific retrofits.  That is, if the current version of the program proves ineffective.

I want to talk about the positive aspects of the ordinance, without even touching on my opinions about the benefits of energy efficiency, low electricity costs for Austin Energy customers, and the other economic benefits of keeping Austin on the cutting edge of green technologies and best practices.  That’s a whole other blog.

A lot of my fellow realtors are strongly opposed to this ordinance, and I understand their concerns.  There are valid concerns that the audit process will slow down the real estate transaction, and add additional costs to the transaction.  I think it is understandable that my colleagues should be upset.  Especially when our fiduciary obligation is to our client, and our clients are typically already in an overwhelming circumstance when they choose to move.  Anyone who has ever sold a home, knows that it’s not the most relaxing time of your life.  But, that ship has sailed, and we have an ordinance now that we need to help our clients understand.

I’m actually looking forward to it.  I am a firm believer in private property rights and free markets. But, I also believe strongly that capitalism is a two-legged stool without consumer rights and full disclosure.  I think it will be refreshing to have an apples-to-apples method of comparing homes on the basis of energy efficiency, in addition to comparing prices, countertops, and curb appeal. 

Welcome to Amy McGowan’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Austin. Visit my website at http://AMcGowan.topproducerwebsite.com.