As a green real estate agent with my EcoBroker Certification, I hear a lot of buzz about green homes. But if you are like most Americans, buying a new home, let alone a green-built new home is not in the cards for you.  That’s why I think a home retrofit – an energy efficiency makeover – is such an important real estate tool.

http://www.notyetgreen.com/?page_id=5

With my own home, our retrofit drastically cut energy bills, and saved my marriage!  My husband is one of those guys that just doesn’t like the drafty feeling of air conditioning while he sleeps.  So our retrofit was all about reducing our number of air conditioning nights.  I learned a lot in the process, was recognized in Better Homes and Gardens magazine for the work and now I share the experience with my clients.

http://www.bhg-digital.com/bhg/200909/?pg=108#pg110

Here’s what I have learned:

First, there’s nothing interesting and exciting about a home retrofit.  We’re talking caulk and insulation here.  But the results are exciting – better comfort, lower bills and increased value.  That’s why President Obama declared insulation “sexy” last December!

http://www.notyetgreen.com/?p=547

Second, the process doesn’t have to be complicated.  I suggest five steps which you can review on my website for the 5×10 Challenge.  See www.5×10.org, then “toolkit”.

http://www.5×10.org/Page_3.html

Lastly, there are great tax credits out there right now which will help you do the work for less.  If you are interested, you need to complete any projects by December 31, 2010.  5×10.org will help you understand what sort of projects qualify.

http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

The secret to a great retrofit is an energy audit.  It is the place to start!  Energy auditors have cutting-edge diagnostic tools to help you understand how all the systems in your home work together.  They look at everything from heating and AC to windows to walls and insulation.  They can tell you exactly where that annoying draft is coming from in your family room and why!  Typically they do not sell the follow-up projects.    And, they prioritize recommendations starting with the ones that pay for themselves most quickly through utility savings. So you can get objective and actionable suggestions from an energy audit.

You can learn more about what goes into a good energy audit from my friends at GreenHomes America.

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Once you’ve had an energy audit you’ll have an easy-to-work-with list of projects to complete.  Some you can do yourself!  And others will be eligible for the current tax credit.

When the work is done, it’s important to keep track of the results.  This is the fun part!  Early studies are showing that home buyers are willing to pay up to $5000 more for a home with good energy efficiency improvements.  Buyers know they will save while they live in a home like that and are willing pay a bit more for that benefit upfront.  Share before and after utility bills with your real estate agents so you can showcase your home’s utility savings when it is time for you to move.

http://www.builderonline.com/business/home-buyers-willing-to-pay-for-energy-efficiency.aspx

The numbers look really good!  The typical retrofit saves an American family between 10-30% on their energy bills.  So retrofit projects truly pay for themselves and then start to pay you back in a very reasonable amount of time.  Then, home buyers will be willing to pay a touch more for your home when you go to sell.  The tax credit caps after you invest $5000 in qualified energy efficiency improvements.  At that budget you could earn the maximum credit of $1500 on your federal tax return.  That means the $5000 project would cost you only $3500.  And then you could save up to 30% each month on your bills.  Plus, a buyer might be willing to spend up to $5000, meaning you might come out at least $1500 ahead!

Not bad for an idea that will keep you cozier at home – and maybe even save your marriage!  A home retrofit truly makes sense.  And it makes dollars and cents too!

About Laura Reedy Stukel: Laura Reedy Stukel is an EcoBroker Certified real estate agent and home energy efficiency expert.   She provides consulting services, and develops packaged solutions to make it easier for consumers to make energy efficient real estate choices.  Examples include Ready, Set, Green Homes^TM for active buyers and sellers and The 5×10 Challenge for existing homeowners.  Stukel is on the national board of directors of Efficiency First’s Home Performance Resource Center, and chairs their national Real Estate Working Group, focusing on topics such as home labeling and Green MLS.  She is the guest blogger on green topics for the Main Street Organization of REALTORs and Chicago Agent magazine.  Her own home retrofit project was covered by Better Homes & Gardens magazine.  Stukel draws on a broad range of previous experience to promote more energy efficient homes including Change Management experience as a consultant with Accenture, and training and communication design experience for 3Com, US Robotics and the American Marketing Association.