Unprecedented Efficiency Regulations Impact Entire Real Estate Community A new energy law that went into effect in January requires more attention and understanding from real estate professionals in an already time-strapped business environment.
The United States Department of Energy (DOE) has initiated new regulations regarding air conditioning. Manufacturers rate this type of equipment and others, such as heat pumps, on
their efficiency using what’s known as SEER ratings.
Seasonal
Energy
Efficiency
Ratio
For several years, the minimum efficiency standard has been 10 SEER. On Jan. 23, 2006, the law changed to require 13 SEER equipment.
Mandates impact the heating, ventilation and air
conditioning market
The new standard requires manufacturers to cease production of A/C components rated less than 13 SEER. While no one can predict how long existing systems may remain in use, manufacturers are now prohibited by law to build A/C components rated less than 13 SEER. The law will ultimately result in a phase-out of less efficient machines altogether.
One result of 13 SEER is the increased size of the new units: they are almost twice as large as 10 SEER units are. They take up more space in warehouses and delivery trucks, and may require more than one person to carry and install. That means additional work hours and more cost to both contractors and consumers, which can add up to frustration and headaches for agents and brokers.
Increased efficiency standards affect home buyer and
seller budgets
According to a 2005 homeowner survey by A/C manufacturer Emerson, 90% of homeowners had heard nothing about 13 SEER, and 77% had never heard the term “SEER rating.” That means it’s likely that your clients are equally in the dark.
Homeowners will face another very real problem when the industry depletes the existing supply of less efficient components now that building them is illegal.
An A/C system includes two units that work together: one outside and one inside. If the outside unit of a less efficient system breaks down and there are no compatible parts left to repair it, there may be no other option than to upgrade the entire unit to 13 SEER.
Since the indoor unit must be compatible with the one outdoors to meet manufacturer efficiency guidelines, it will require additional work to get the system running again. This expense will likely be unexpected and could be costly.
Agents face client frustration and reduced business-building time
It’s understandable that homeowners will be frustrated when they face a possible system upgrade instead of the standard repair they were expecting. The lack of education on 13 SEER and energy efficiency in general will serve to compound that frustration with shock and related financial worries.
Explaining the implications of 13 SEER, possible system upgrades and associated costs can rob agents of time they need to build their businesses. It takes additional time to research the legislation and find the answers to homeowner questions. These two time-drainers are major issues in an industry where time truly does equal money.
Another scenario that poses risk to the real estate professional is a home warranty that doesn’t address 13 SEER. Agents jeopardize referrals and good reputations if clients learn that an agent-recommended product they’ve just purchased is virtually useless in light of the stricter DOE mandates.
Forewarned is fore-armed: Learn about 13 SEER before clients do
In light of all of this information, it’s worrisome that so much time and money will go to helping clients deal with 13 SEER. Related, unexpected price increases and home warranties that do not address the legislation add to homeowner concern and annoyance.
Certain manufacturers and service providers, such as American Home Shield, are prepared to help agents prepare for the new standards.
“We work very closely with the real estate community and understand their frustrations and constraints,” says Steve Burnett, chief marketing officer at American Home Shield. “We’re supplying easy-to-understand learning tools for agents to share with their clients and also making sure our field team is knowledgeable on 13 SEER.”
AHS has taken additional steps to address the efficiency transition, including:
Providing current AHS home warranty holders the right to upgrade and get 13 SEER coverage now for just $30
Enhancing their contracts for new clients and renewals
Staffing an informed, responsive 13 SEER resource center available at (800) 735-4663 and online at www.13SEERsolutions.com
Department of Energy is the original source
To learn more about 13 SEER efficiency guidelines, check out www.energy.gov, where you can read the actual 13 SEER legislation and find out about the history of the new mandates.
Contact the U.S. Department of Energy for more legislative information and questions by mail at 1000 Independence Avenue, SW, Washington, DC 20585 or by phone at 800-DIAL-DOE.
For more information, visit ahswarranty.com |
