Efficient Home Guide: What to Look for When Buying

Buying a home is a big investment. Before you sign on the dotted line, you want to know how much it’s going to cost—not just your mortgage, but your monthly expenses like utilities and maintenance. There are several things to look for in advance to get a sense of how efficient your new home is, and to avoid unwelcome surprises down the line. 

Get a Home Inspection

For most homebuyers, a home inspection is the single best opportunity to understand the ins and outs of their future home. In particularly competitive markets, buyers sometimes opt to waive the home inspection, but we highly recommend doing one. A good inspector won’t just point out the obvious issues—they'll give you insight into the condition of major systems like heating and cooling, and any structural issues that could cost a pretty penny down the line. The inspection is a great opportunity to ask questions. 

Understand the Major Systems

When buying a home, one of the first things you want to understand is the HVAC system. What type of fuel does your home use? What type of distribution system does it have? Natural gas is generally the cheapest fuel, whereas electric resistance heating is the most expensive way to heat your home. Heat pumps work best in all-electric homes. If you have ductwork, you might be able to add air conditioning down the line; if you have a baseboard system, adding AC would mean window units or heat pumps. You also want to understand how old the HVAC system is, since replacing it can be a major investment.

The water heater is another important component of your home. Heat pump water heaters are significantly less expensive to operate than traditional electric water heaters. 
Look for the yellow Energy Guide label on HVAC equipment and water heaters, which can give you a sense of how efficient the systems is compared to similar models. 

Check Out the Appliances

Older appliances tend to use more energy, which adds up over time. Look for the ENERGY STAR® label on kitchen appliances, which is a quick sign that the equipment meets higher efficiency standards. 

Get a Handle on the Insulation

A well-insulated and air-sealed home can cost a lot less to heat and cool. It can be hard to evaluate the quantity and quality of insulation without being able to see behind the walls, but there are some clues. If you have access to the attic, look to see if it has insulation. If you  see the rafters, it might be a sign that the home needs more insulation. While you’re up there, ask the inspector if the attic is properly ventilated, which helps circulate fresh air. 

Look for Drafts and Air Gaps

Windows and doors tell an important story in a home. As you walk through the house, look closely and see if you notice any gaps or drafts. A drafty space is less comfortable and more expensive to heat and cool. Replacing windows and doors can also be expensive. 

If the home has a basement, look for signs of critters. If a mouse can get into the home, so can cold air. Those gaps are easy enough to patch up with some spray foam, but sometimes they can be a sign of larger structural issues in the foundation. 

Know your Electrical Panel

Most homes have 100-, 150-, or 200-amp service, which means you can use a certain amount of electricity at any given time. If you have plans to increase the amount of electricity the home uses—like installing an EV charger or adding a heat pump—then you’ll want to make sure the panel has enough extra capacity. Upgrading a panel can be expensive depending on how far your home is from the utility pole. 

Ask for Past Utility Bills

One of the best ways to understand what your monthly energy costs will be is look at past utility bills. This will shed light on your monthly costs, and how this varies in the warmer or colder months. 

Take a look at the home’s listing for additional clues If it mentions recent upgrades to HVAC equipment or appliances, added insulation, or new windows and doors, those are all good signs. 

If you don’t have a clear sense of what electric bills might look like, try Efficiency Smart’s Electricity Usage Calculator to get an estimate based on what you know about the home and your planned usage. 

Learn More

Buying a home can be exciting, scary, and everything in between. A careful walk-through with your inspector, paired with a few thoughtful questions, helps in picking a place that works better from day one.

Efficiency Smart can help answer your questions about energy efficiency in your new home. Call us at 877-889-3777 or email us at [email protected].