Mandatory energy audits?
Under the proposed new Green Energy Act, Ontarians won't be able to sell their homes or condos without first getting an energy audit, which costs roughly $300. Audits should still qualify for the up to $150 subsidy under the Green Energy Act.
The legislation won't require sellers to take any action on the audit results, it's merely intended to inform potential buyers of the property's energy efficiency, and create some more jobs in the energy auditing field.
As the proposal is being debated and fine-tuned, Energy Minister George Smitherman has also hinted that buyers may end up footing the audit bill.
As a prospective buyer, and someone with a bit of a green tilt, I think mandatory audits, regardless of who pays for them, would be a great move. I'd prefer to have a picture of my energy costs and know what work would need to be done to cut my bills before making an offer on a property.
But critics, and there are many, share a different view. They argue the audits are just a thinly disguised new tax in an already overtaxed industry, and that this measure would further drive down prices at a time when many homeowners are already feeling squeezed.
What do you think? Is this a positive step in a green direction, or another stress on the real estate market? Or is it both?
Read more on this topic:
Green audits have critics seeing red
Home sellers face $300 'green audit
re. Mandatory energy audits
There is nothing stopping a buyer from having an energy audit done on a house that they are interested in buying if they so desire.
In most cases in our neighbourhood houses that are bought by new owners undergo extensive renovations before they are occupied by the new owner. Why should the seller have to fork out another $300.00 to sell their house no matter what it's condition is.
An energy audit is an option available to a purchaser. It should not be forced upon a sellor.
Posted by: Jack Hope | February 25, 2009 at 11:36 AM
Having these audits done on resales, in the long run, is the smart thing to do.
These audits will tell potential buyers how much energy the house for sale consumes. A home inspection is NOT the same as an ecoENERGY evaluation/Green audit. These evalutions are very much like the ratings you now see on cars and appliances with the EnergyStar/Energuide ratings.
It will educate the homeowner and give them additional info on how much it could potentially cost to heat their home and if this program is like the current ecoENERGY evaluations beign offered, it will tell them where they could make improvements to make their home more energy efficient. Should they choose to follow up on the recommendations, they would be eligible for Federal and Provincial grants available for the receommended retrofits.
Yes, it seems ill timed with the housing market being as it is, the economy and the Toronto land tax, but we as Ontario residents should do what we can to reduce our impact on the enviroment.
Posted by: VivianK | February 26, 2009 at 11:17 AM
Is it right or wrong? I cannot answer, but I do know it is NOT a tax grab, what the home energy audit does, is shows the homeowner where to make improvements and directs them as to where they can save some money.
The bottom line is to help out the environment. Of course I would like to see this bill passed, I have a vested interest being a self employed home inspector (www.hirus.ca) and licensed Energy Advisor, but that aside, I think a lot of people are getting the wrong idea.
You can not compare this home energy evaluation with the Clean-Air program for cars. The clean air program’s mandate is to take autos with bad emissions off the road. The energy audit brings awareness to the condition of a home.
It does not mandate any upgrades or changes
and...
It will not restrict the sale of a home.
You are not awarded a Pass or Fail. You will receive an energy rating, and a report showing possible upgrades to help you save both money and to help you do your part with green house gasses. I have several clients who are amazed at what this report tells them. The government will not profit from this, but if the public see how easy (in most cases) it is to help save some energy we all will profit….
Our Grandparents and their grandparents before them got us into this environmental mess, but we can turn it around so our Grandchildren and their grandchildren’s Children will still have a place to LIVE!
We CAN make a difference, but we have to start, and we have to follow through! It won’t happen overnight, but It can happen....
It is NOT too late!
...That’s my two-cents....for what it’s worth, and personally, I think it’s worth it!
Thanks
Barry Bea, Lefroy
Posted by: Barry Bea | February 26, 2009 at 03:01 PM
When you're in the middle of economic uncertainty, an extra forced expense is the last thing sellers need. It should be like an inspection - if you want to get more information about a house you're buying, then you have that option. Making it mandatory is simply an effort by the government to create a few jobs and give the appearance they care about the environment. Ontarians don't need any more necessary expenses, and mandatory energy audits should not be forced on home sellers. The BC government for instance is bringing in the HST which will apply to new home purchases. Can't wait to see the positive impact that has. It would be just like them to bring the environmental audit too. Is the HST in Ontario going to apply to new houses as well?
Posted by: Matthew O | December 13, 2009 at 08:11 PM