Analysis Indicates Chicago Homes that Disclose Energy Costs Have a Higher Close Rate
Energy cost disclosure gains momentum as more real estate offices recognize the value of energy use data for all involved in the real estate transaction. A new disclosure tool has helped all Baird & Warner city offices and Chicago-based Coldwell Banker Residential Brokerage offices secure their place as leaders in using this latest technology.
LISLE, ILLINOIS (April 20, 2015) – Chicago single family real estate listings that disclose energy costs have a higher close rate and spend less time on the market than comparable homes that do not disclose this information, according to an analysis by Elevate Energy.
Elevate Energy’s findings indicate that homes that disclosed energy costs at the time of listing sold at a higher percentage of the asking price. On average, an attached home (e.g., condominium or townhome) that was listed for $352,000 would have sold for $4,576 more if the listing had disclosed the home’s energy costs. In addition, attached homes that disclosed energy costs spent about 25 fewer days on the market compared to homes that did not disclose energy costs. Detached homes that disclosed energy costs spent eight fewer days on the market.
“Elevate Energy has done an outstanding job of taking a cumbersome task – locating accurate information about a home’s energy usage – and simplifying it to create a wonderful experience for our broker associates and their clients,” said Tripti Kasal, vice president of sales for Baird & Warner, one of the first real estate brokerages to institutionalize electronic disclosure. “Baird & Warner is committed to providing the most innovative tools to better facilitate our transactions – a partnership with Elevate Energy was the right thing for us.”
In 2013, the City of Chicago became the first municipality in the country to allow direct disclosure of residential energy costs (gas and electric) via a multiple listing service (MLS) when a single family or two- to four-unit home was listed for sale. The achievement was the result of a unique partnership between Midwest Real Estate Data (MRED), Chicagoland’s multiple listing service (MLS), the City of Chicago Office of the Mayor, and Elevate Energy. In addition, an “Energy eCompliance” tool was launched to help listing agents in Chicago provide buyer agents and home purchasers with immediate online access to an energy cost disclosure (ECD) report for a property. Using the tool also helps agents comply with the specific time requirements of the updated energy cost disclosure ordinance.
The analysis from Elevate Energy bolsters earlier indications that energy cost disclosure is meaningful and beneficial. In addition to higher close rates and quicker sales, disclosure facilitates more informed decisions for all involved in the real estate transaction and helps demonstrate the value of energy efficiency in the marketplace.
“Energy costs are such a significant issue to home buyers it is a no-brainer for MRED to assist its real estate professionals in providing the most accurate and timely information,” said MRED President/Chief Executive Officer Rebecca Jensen. “At the same time, we are enabling our listing brokers to comply with the City of Chicago ordinance. A win for everybody, especially the consumer, and we are pleased to be a nationwide leader in this arena.”
Energy cost disclosure is gaining momentum in Chicago as an increasing number of brokerages utilize the Energy eCompliance tool and comply with the ordinance. MRED, the City of Chicago, and Elevate Energy have launched an ongoing Chicago Energy eCompliance Brokerage Challenge to help real estate offices secure their place as leaders in using this latest technology.
More than 20 offices have participated in the challenge so far, including all Baird & Warner city offices, Chicago-based Coldwell Banker Residential Brokerage offices, the MG Group at BERKSHIRE HATHAWAY HomeServices KoenigRubloff Realty Group, Century 21 Affiliated Hyde Park, and The Gramata Realty Group with @properties. A complete listing of all participating offices is available on the Elevate Energy website.
All Chicagoland real estate offices, agents, and sales teams are encouraged to participate in the Chicago Energy eCompliance Brokerage Challenge by completing a checklist:
- Commitment to use digital energy cost disclosure fields offered by MRED on all eligible Chicago property listings.
- Office staff member oversees training activities on the Energy eCompliance tool.
- Using energy cost disclosure fields provided by MRED becomes part of the brokerage’s listing process. A “how to” primer for real estate professionals is available.
To participate, brokerages should complete the three tasks and return a completed form to firstname.lastname@example.org.
About Elevate Energy
Elevate Energy’s mission is to deliver smarter energy use for all. Elevate designs and implements efficiency programs that lower costs, protect the environment, and ensure the benefits of energy efficiency reach those who need them most. For more information, please visit http://www.elevateenergy.org.
Midwest Real Estate Data (MRED) is the real estate data aggregator and distributor providing the Chicagoland multiple listing service (MLS) to nearly 40,000 brokers and appraisers and 8,000 offices. MRED serves Chicago and the surrounding “collar” counties and provides property information encompassing northern Illinois, southern Wisconsin and northwest Indiana. MRED delivers over twenty products and services to its customers, complementing connectMLS™, the top-rated MLS system in the country for two years running according to the WAV Group MLS Technology Survey. MRED is the 2013 Inman News Most Innovative MLS/Real Estate Trade Association, and for four consecutive years the MRED Help Desk has been identified as one of the best small business centers in the United States and Canada by BenchmarkPortal. For more information please visit MREDLLC.com.