Everything You Need to Know About the Resale Value of Energy-Efficient Homes
                     Everything You Need to Know About the 
 Resale Value of Energy-Efficient Homes
Do you know that residential buildings in Australia account for around 24% of the 
country's  energy use and more than 10% of its total carbon emissions? Everyone in 
Australia desires an  energy-efficient home as it's not only comfortable to live in but 
also saves a lot on energy bills.
These two can be vital factors for prospective homeowners or renters. Even a review 
of  international research discovered that energy-efficient homes usually fetch a 
higher price.
An energy performance rating like the BASIX Certificate is an ideal way to show how 
energy  efficient a home could be. Many countries have mandated that sellers obtain 
and disclose a  home's rating to potential buyers.
Although currently there is no national requirement for homeowners to disclose their 
home's  energy efficiency score at the time of sale, Europe has been doing it for the 
past thirteen years  and ACT for the last ten years.
Let's read on to learn the impact of energy-efficient homes on their resale value.
What is Energy Efficient Home Design?
Energy-efficient home design can be defined as the deliberate approach to construct 
or retrofit a  residential building with the main focus on minimising energy usage and 
maximising energy  efficiency.
This design can incorporate features such as strategic window placement, advanced 
insulation,  environmentally friendly building materials, energy-efficient appliances, 
and renewable energy  sources to reduce energy consumption, environmental 
impact, and utility bills.
The primary aim behind using an energy-efficient home design is to create a 
comfortable,  healthy and sustainable living space that can boost the home's resale 
value and benefit  homeowners and the planet.
Energy Efficient Homes Resale Value: What Does the  
Research Show?
Many relevant studies show that more energy-efficient homes fetch homeowners 
higher prices  than less energy-efficient but otherwise comparable homes.
Now the question is, what sort of premium do houses with the higher energy rating 
by  professional BASIX Consultants attract? It usually ranges between 2% and 10%.
Price effects are typically considered in two ways. The first involves comparing 
energy-efficient  rated houses versus unrated residences.
The second involves comparing higher-rated houses with the lower-rated ones. In 
both cases, it  was found that homeowners fetch price premiums.
A recent study undertaken in the ACT discovered that 85% of the houses with a 
higher energy  rating generally receive a premium resale value ranging between 
2.4% and 9.4%.
Compared to a 3-star home per the current NatHERS scheme standard, a 6-star 
house could  receive a higher resale price of around 2.4%, with a 7-star home 
receiving approximately a  9.4% increase in resale price.
For instance, the median house price in the ACT is approximately $773,653, 
equating to a  potential price increase of $18,500 to $72,721.
In addition, this price premium represents a strong return on investment (ROI) for 
individuals  building or renovating their homes. You shouldn't be bothered by the 
added cost of building an  energy-efficient home.
A 2009 study showed that a 7.2-star house provided the best return on investment 
(ROI) with a  payback of seven years and an 18% internal rate of return.
How Will This System Benefit Australia?
Disclosing the energy efficiency score of houses in Australia by the BASIX Report will 
benefit  people trying to sell or buy energy-efficient homes. Moreover, it will also be 
good for society.
It's estimated that approximately half of the houses that will be used in 2050 have 
already been  built. If the country wants to reduce carbon emissions and build a 
sustainable environment  meaningfully, it's imperative to tackle its existing building 
stock.
A scheme allowing homeowners to capitalise on their home's energy efficiency 
would change  the economics of retrofitting existing homes.
Moreover, homeowners will have a clear incentive, i.e., increasing their home's 
resale value, to  improve their building's energy efficiency without needing large 
government subsidies.
Australia can follow these steps to help homeowners measure the energy efficiency 
of their  homes:
● Define a nationally consistent energy-efficiency rating tool for existing houses.
● Provide a framework for homeowners to voluntarily disclose the genuine 
energy  performance of their houses when selling or leasing the property.
● Make it mandatory for homeowners to disclose their home's energy rating 
How wCheann i tY's o buei nBg usoilldd o ar lnea sEend.ergy-Efficient Home?
● Introduce minimum standards of energy performance for the rental residential 
buildings.
Building an energy-efficient home is vital to secure higher resale value. However, you 
might be  confused about how to build an energy-efficient home. The professional 
BASIX Consultants  recommend incorporating these critical principles of an energy-
efficient home:
● Strategic insulation:
Using advanced insulation materials and techniques can help minimise heat 
transfer and  maintain stable indoor temperatures.
● Energy-efficient appliances:
Choosing appliances with high energy efficiency ratings will reduce your 
home's energy  consumption.
● Optimised window placement:
You should strategically position windows to maximise natural light and heat 
and  minimise heat loss and gain.
● Sustainable building materials:
Look for eco-friendly, durable materials with good thermal properties to make 
your home  more energy efficient.
● Renewable energy sources:
You can generate clean energy by installing solar panels, wind  turbines, or  
other  renewable energy systems.
● Efficient HVAC systems:
The ideal way to reduce energy waste is to install appropriately sized and 
maintained  heating, ventilation, and air conditioning system or (HVAC 
systems).
● Energy rating systems:
You should refer to star energy rating schemes in Australia, like NatHERS, 
BASIX  certificate, etc., to gain insights into your home's expected energy 
performance.
To sum up it all
Choosing to live in an energy-efficient home in Australia can hold the potential to 
transform  multiple aspects of an individual's life significantly.
It offers several environmental benefits while reducing costs, enhancing comfort, and 
improving  overall quality of life.
It's no secret that the COVID-19 pandemic significantly impacted house sales and 
selling prices.  Understanding the significance of having energy-efficient homes, 
BASIX consultants can help  you build an energy-efficient home.
The BASIX Certificate disclosing your home's energy efficiency score can help 
you fetch a  higher price for your home when considering selling or leasing it.
Highlighting aspects like efficient hot water systems, solar PV systems, or strong 
insulation  levels can help you secure a better price for your house.
Contact Us
Eco Certificates
Website: https://www.ecocertificates.com.au
Email ID: [email protected]
Address: Suite G.03, 23 Ryde Road, Pymble NSW, Australia- 2073
Phone Number: +61 1300162436