An Energy Performance Certificate is no longer a document that appears only when a sale is about to close. Today, it is part of a property’s first impression. Buyers see the energy rating in the listing, consider what it means for their running costs and may bring it into the price negotiation.
In Greece, the energy rating shown on an Energy Performance Certificate, or EPC, has been required in property sale and rental listings since 1 January 2021. This gives prospective buyers and tenants information about a home’s energy performance before they arrange a viewing. ypen.gov.gr
For years, many owners regarded the EPC as a formality to deal with once a buyer or tenant had been found. A buyer sees something more practical. They want to know what it may cost to heat and cool the home, how comfortable it will be throughout the year and whether significant improvements will be needed after the purchase.
There is a clear difference between a renovation you choose and work you feel you must undertake. A buyer may decide to replace a kitchen because it does not suit their taste. Poor insulation, ageing windows or an inefficient heating system can be harder to postpone. These are costs the buyer may include in their budget from the outset.
That is how an Energy Performance Certificate enters the negotiation. Imagine two apartments in the same neighbourhood, with similar floor areas and the same asking price. One has effective insulation, modern windows and efficient heating. The other requires substantial upgrades. Their asking prices may be identical, but their likely total costs to the buyer are not.
A lower energy rating does not automatically reduce a property’s value by a fixed percentage. Location, floor level, views, construction quality, the condition of the building and renovation potential all remain important. The EPC adds another factor to assess alongside them. It helps buyers ask what they will receive for the price and what they may still need to spend.
A seller may reasonably decide against installing new windows or replacing the heating system shortly before selling. A buyer may just as reasonably account for those expenses in their offer. The answer is to reflect the home’s condition in a well supported asking price. A property that needs work can still be an excellent purchase if its price leaves room for the investment required.
Energy performance matters in the rental market too. Low building service charges do not necessarily mean that a home will be inexpensive to live in. Tenants also consider the cost of keeping it comfortable in winter and summer.
European policy is placing greater emphasis on improving existing buildings, with the long term aim of a decarbonised building stock by 2050. This does not mean that every older apartment must be renovated today before it can be sold. It does mean that energy performance is becoming a more significant part of how residential property is assessed. energy.ec.europa.eu
Before setting an asking price, owners should understand what their Energy Performance Certificate says and how it relates to the property’s actual condition. If energy upgrades have been completed, they should be presented clearly. If substantial work is still needed, the asking price should stand up to comparison with competing homes.
At Epsilon Team Real Estate, we assess the EPC alongside the property’s features and current market evidence. The right asking price cannot be determined by an energy rating alone. It comes from understanding what the home offers, what its next owner may need to invest and how buyers value that difference today.
Evita Eleftheroudaki
Real Estate Agent | Real Estate Appraiser
co-founder
EPSILON TEAM REAL ESTATE
evita@epsilonteam.gr
