Selling in Austin: ECAD Audit and Pre-Sale Fixes

If you're selling a home inside Austin city limits, there's a requirement many sellers learn about late: the Energy Conservation Audit and Disclosure (ECAD) ordinance. Here's how it works and how to use it in your pre-sale plan.

Does ECAD apply to you?

According to Austin Energy, ECAD applies to residential properties with four or fewer dwellings that are:

• within the Austin Energy service area;
• within Austin city limits;
• 10 years old or older.

Condominiums with one to four units follow the residential rules. If you're in Cedar Park, Round Rock or another suburb outside Austin Energy's territory, ECAD doesn't apply.

How to comply

Austin Energy lists two options for sellers:

1. Schedule an energy audit with a qualified ECAD energy professional; or
2. Participate in a qualifying energy efficiency program.

Austin Energy also provides a way to check a property's current ECAD status. A prior audit or program participation may already cover you.

Sellers provide results to buyers during the transaction. Ask your agent about timing relative to the option period.

What audits typically look at

• attic insulation levels;
• duct leakage, which is often significant in attic-ducted homes;
• air leakage around the house;
• windows and solar screens;
• HVAC age and efficiency.

Pre-sale fixes worth considering

Cheap, visible and audit-relevant:

• Attic insulation top-up and air sealing.
• Duct sealing and repairing disconnected ducts.
• Solar screens on west and south windows.
• A new filter and an HVAC tune-up with a service record.

Bigger items, case by case:

• HVAC replacement: if the system is very old, buyers will price it in. Replacing it may help, or a credit may be simpler. Austin Energy's AC rebate averages $800 for qualifying systems.
• Windows: usually not worth replacing just for a sale.

Beyond ECAD: documents buyers ask for

• Foundation: engineer reports, repair records, final letters and warranty transfer documents. See our foundation guide.
• Roof: age, invoice and warranty, plus any insurance claims.
• Permits: finaled permits for additions and remodels. Unpermitted work can complicate a sale.
• HVAC: install dates and service records.

A pre-listing timeline

Understanding duct leakage

Many Austin homes have ducts in hot attics, where summer temperatures can greatly exceed outdoor temperatures. Leaky joints and disconnected runs pull hot attic air into the system and send cooled air into the attic. Duct sealing with mastic and proper repairs is one of the most cost-effective fixes. It also makes rooms more comfortable, which buyers notice during showings.

Attic insulation

Older homes often have thin or compacted insulation. Adding blown-in insulation is usually quick and affordable. Before adding insulation, air-seal attic penetrations: top plates, recessed lights, plumbing stacks and the attic hatch. Insulation over unsealed gaps underperforms.

Talking to buyers about results

An audit that shows room for improvement isn't a deal breaker. Buyers in older Austin neighborhoods expect it. Make it work for you:

• If you made improvements, include invoices and before-and-after notes with the disclosure.
• If you didn't, get rough quotes for recommended fixes. A known cost reassures buyers more than an unknown one.
• Point out any rebates the buyer can use after closing.

If you're buying

The ECAD results are useful as a buyer. Use them, along with your inspection, to prioritize upgrades in your first year and to negotiate repairs or credits.