We’re not talking about it much–yet–but these crazy energy costs are impacting the real estate market. Potential home buyers are affected because heating costs will impact how much house is affordable. The house a buyer could have afforded last year might cost $2000 more to heat this year. That’s like taking a $2000 net salary reduction. On an annualized basis, that’s a loss of about forty dollars per week that’s got to come from somewhere or the house is beyond financial reach.

We can’t help but wonder if lenders will start making adjustments to prequalification standards. (Good question to ask when you are talking to you lender!) The last thing buyers should do is buy a home they can’t afford to heat and that’s getting easier to do without really trying! Maine buyers should be very pleased that heating fuel consumption is a required disclosure. Granted, individual habits and preferences can have an impact, but at least there is often some sense of the potential costs, although who would have predicted these prices a year ago?!

This isn’t meant to be discouraging to potential buyers; it’s just one more aspect of the transaction that requires diligence and consideration. There’s plenty to consider when you are purchasing a home and your REALTOR will help!