Ekotrope Helps Consumers Estimate the Cost of Home Ownership
- CREtech Blog
- Residential Real Estate
For prospective homebuyers, it’s important to not only consider the purchase price of a home but also the total cost of owning a home. Ekotrope is now making it easier for consumers to do that by estimating and comparing the monthly cost of owning a home, including mortgage, insurance, taxes, maintenance, and energy cost. The app works by calculating costs based on location, size, age, and price of a home.
While Ekotrope is certainly beneficial to consumers, it also holds benefits for real estate professionals, as well. For instance, real estate agents can use the app to show buyers an accurate estimate of the total cost of owning a home, including energy and maintenance. In this regard, the app would be used to demonstrate why one home might be a better value than another home. Additionally, the app could be used to simply educate buyers about the costs of home ownership.
Mortgage payments are calculated based on financial information entered by the customer, including rate, length of the mortgage, and the down payment. Since the size, location, and age of a home has an impact on the amount that a homeowner pays for maintenance, all of this information is used to calculate maintenance. Ekotrope uses data from the American Housing Survey to estimate the amount the consumer is likely to spend on repairing items, such as appliances, heating, and roofing. Homeowners spend money on repairs, whereas renters will not, but are also more likely to spend money on pricey items, including gadgetry and alarm systems. Over time, the cost of such amenities can quickly add thousands of dollars to the total cost of home ownership.
Data from the Residential Energy Consumption Survey, along with information from the Building Performance Database, is used to estimate the amount the homeowner is likely to spend on energy costs. With all of this information, the app is able to provide users with an accurate estimate regarding the monthly cost of owning a home.
The purchase of a home is one of the biggest purchases most people will make in their lifetimes. Unfortunately, many people never stop to consider how much it will cost to own their home beyond the mortgage payment. Ekotrope is making it easier for buyers to determine exactly how much they can afford to spend on a home by also including all of the other hidden costs of home ownership. As a result, consumers are able to make a more informed buying decision.
Purchasing a home that is as close to how a buyer would like it to look will ultimately save buyers money and time. Buying a home that is modernized and updated will also save money. Most prospective homebuyers tend to underestimate the costs and time necessary to update a home. With Ekotrope’s tool, buyers can help to avoid such costly mistakes.
Ekotrope is a software company that leverages NASA-developed technology to accurately calculate energy costs.