STEVE RYAN
Review needed

Realtors in Massachusetts want state lawmakers to put the brakes on a measure that would require energy audits of homes.

A section of a Senate energy bill would enable buyers to get energy scores and audits of single-family homes and residential properties with five units or less that they want to purchase. Realtors say the audits could delay and add hundreds of dollars to home sale transactions.

“We think the matter needs to be reviewed very carefully before moving forward,” said Steve Ryan, general counsel and government affairs director for the Massachusetts Association of Realtors.

A similar bill was passed by the House in November. But the House version of the bill ordered the creation of commission to study the development and use of energy audits.

Sen. Richard R. Tisei, a Realtor from Wakefield, filed an amendment last week to the bill to also create a commission to study the issue. But the amendment was not approved.

Under the bill, homebuyers would have the option of waiving the energy audit.

“There is a reference in one amendment that indicates that a buyer may be able to waive an energy audit as part of the energy scoring program. We’re trying to reconcile that language with other sections of the bill to determine whether it does create an optional program,” Ryan said. “It’s unclear to us what the outcome is.”

Sen. Michael W. Morrissey, a Quincy Democrat who authored the bill, said the Senate wanted to be more aggressive in its approach to conservation and present what “we thought would be a more complete plan.”

“We don’t want to make it harder on anyone but we have to get the word out about how critical energy conservation is and how critical [homeowners’] help could be to solve our immediate energy problems,” said Morrissey.

The Senate legislation directs the Board of Registration of Home Inspectors, in consultation with the Division of Energy Resources and other agencies, to draft regulations and a cost analysis for developing an energy scoring program.

The regulations and cost analysis would go back to the Legislature and at that point the public could provide additional input, according to Morrissey. The proposed bill prohibits any regulations from being implemented until after 2010.

“I would think that half of the real estate industry is with me. They represent buyers, and don’t they want buyers to have knowledge? What could be better for buyers than to have as much knowledge [as possible] about the house they’re buying?” said Morrissey.

Too Many Questions

MAR leaders argue that there are too many unanswered questions – including who will conduct audits, how much they will cost, how they’ll be conducted and what type of benefit they would provide to consumers.

Realtors say many utility companies already offer free energy audits and homebuyers can now request information about a home’s heating, air conditioning and other energy systems before purchasing a property. Under the bill, components of the home to be tested would include fixtures, heating, ventilation, air conditioning, the building envelope, hot water system, insulation and lighting.

“It’s not that we’re against conservation. We just think this isn’t the right way to do it,” said Gregory Vasil, chief executive officer of the Greater Boston Real Estate Board.

Opponents also worry that a low energy score could put a stigma on some homes, particularly older residences which don’t have the energy-efficient systems, appliances and features of newer properties.

On the other hand, Morrissey pointed out that a home’s high energy score could be a “good marketing tool” for agents.

The measure comes at a time when housing market is slumping. Realtors fear that sellers who are struggling to move their homes will be hit with another burden and that it would create one more point to negotiate in a transaction.

“Is this the time to come up with something that’s dictatorial?” asked Vasil.

Morrissey rejected that argument, saying sellers and buyers already negotiate over things like a home’s heating or cooling system.

Realtors also maintain that home inspectors are not specifically trained to conduct energy audits.

Carl Pucci, president of Braintree-based Tiger Home Inspection, one of the largest home inspection companies in New England, agreed that the matter needs to be studied more.

“Home inspections are very complex to begin with Â… an energy audit is just as complex,” said Pucci. “There needs to be a lot more research before they write a bill that says we have to do it.”

Pucci said energy audits would have to involve several licensed professionals such as oil technicians to check the efficiency of oil burners and plumbers to inspect plumbing. “It gets very complicated,” he said.

Pucci also noted that the home inspectors’ board already is swamped dealing with license renewals, education, and consumer complaints. The extra responsibility of writing regulations would be a challenge, he said.

MAR estimates that such energy inspections would cost from $150 up to $300. Assuming an average energy inspection costs $200, it would have added $15 million to home sale transactions last year, based on the number of sales, according to the association.

The bill doesn’t specify whether a buyer or seller in a transaction would pay for the audit.

“No state in the country has attempted to force homeowners to conduct these tests when they’re selling their home,” said Ryan.

The proposed legislation is an effort to put Massachusetts at the front of the nation in terms of conservation efforts. But Realtors argue that such an initiative should be driven largely by national policy.

“We all should do our best to conserve, but national energy policy should be driven by Congress,” said Vasil.

A conference committee will hash out the differences between the House and Senate bills.