Effective June 1, 2009, the Austin City Council enacted the Energy Conservation Audit and Disclosure Ordinance requiring all non-exempt sellers of residential and multi-family property to disclosure the findings of an energy audit to prospective buyers prior to sale.  

The goal is to inform buyers and to improve the energy efficiency of homes and buildings in the city of Austin that receive electricity from Austin Energy.  The premise being that by becoming more aware of energy usage & waste that buyers and sellers will participate in voluntary energy efficiency programs through local utility providers.  The ultimate goal of the Austin Climate Protection Plan is to offset 700 megawatts of peak energy demand by 2020 therefore reducing Austin’s carbon footprint.

What Does the Audit Require?

Property owners of single and multi-family residences within Austin City limits who receive electricity from Austin Energy must have an Energy Efficiency Audit performed by an auditor who is a certified Residential Energy Services Network Rater or Builder Performance Institute Analyst prior to selling the property.  The seller must provide a copy of the audit to potential purchasers.

The audit is required as part of the Seller’s Disclosure.  It must be completed before the home sale closes.

Here is a list of Certified Auditors who have registered with Austin Energy(pdf).

Guide for Home Sellers, Home Buyers and Home Owners.  A closer look at an Energy Efficient Home (pdf).

What Does the Audit Provide?

The information that the auditor will provide to the homeowner will include:

• Condition and estimated R-value of existing attic insulation
• Percentage of air leakage from the duct system
• Age, Efficiency & Condition of existing HVAC equipment
• Air leakage around doors, windows and attic entries
• Opportunities for Improving Energy Efficiency

Are there Exemptions?

• The property does not receive electricity from Austin Energy
• The property is less than 10 years old
• The property has received at least 3 energy efficiency improvements or more than $500 in rebates through the Austin Energy Home Performance with Energy Star program within 10 years of the current sale.
  
• The property is a condominium
• The sale is a result of: pre-foreclosure sale, foreclosure sale, trustee sale, eminent domain, gift from one family member to another, court order or probate proceedings, or decree of legal separation or dissolution of marriage.
  
• In addition there are a handful of variances if the property meets the following guidelines.

Determine if you need an Audit by filling out this brief form.

Download a summary pdf of the Austin Energy Efficiency Ordinance.

Home Inspections

The Home inspection is a regular occurrence for any buyer who is purchasing a home.   The buyer wants to make sure that he/she is making a sound investment and current property condition is a big factor in that equation.

As a home seller, you will need to understand that once the buyer is under contract to purchase your home, he/she will hire a professional home inspector to inspect the home for defects and/or necessary repairs.

The Inspector of buyer’s choice, the home buyer(s) and possibly the buyer’s agent will be present during the home inspection.   The inspector will record the findings from his/her inspection and send the inspection report to the buyer and the buyer’s agent.   The buyer and his/her agent will review that information and determine if there are repairs or price concessions that they feel will need to be requested prior to moving forward.   Repairs and/or price concessions become part of the negotiation process during the buyer’s option period.

Once the seller and buyer have agreed upon repairs, price concessions or a combination of both, the buyer will remove the home inspection contingency and proceed with the home sale.

It may be a wise practice to get the property pre-inspected by an inspector of your choosing so that you were well aware of the property condition prior to listing.   A preliminary inspection has many potential benefits.    First off, it will allow you to make any necessary repairs (small or large) prior to listing.  It also gives you and potential buyers a firm understanding of the current condition of the property.  It can instill confidence in the buyer that there will not be any property condition red flags later on in the transaction.

If you choose to get an inspection done on your home prior to listing, consult my preferred vendors section for home inspector suggestions.