Formal appraisal & value

Why investing in energy label A is not always smart

7 December 2025 · 3 min read

The housing market sometimes seems obsessed with energy labels. A higher letter supposedly means more value automatically, attracts more buyers and speeds up the sale. But anyone who works in estate agency every day knows that this picture is too simple. An energy label tells you something about energy performance, but nothing about atmosphere, light, location, comfort or emotion. And those are exactly the things buyers fall in love with.

When theory and practice diverge

Official statistics show that homes with a better energy label are worth more on average. But averages are about figures, not about your home. A characterful 1930s home with wooden floors and high ceilings responds completely differently to sustainability measures than a modern terraced house from 2010. Location, year of construction, state of maintenance, target group and finish all play a part.

A common worked example

Suppose you have a home with label C, and an investment of around €7,000 is enough to reach label A. The estimated increase in value might yield perhaps €12,000. On paper that looks attractive. But practice often tells a different story: requesting quotes, scheduling the work, waiting times, checking installers and transferring guarantees. All that effort for a theoretical benefit that can easily disappear in the market, while the buyer also pays transfer tax (overdrachtsbelasting) on the higher purchase price.

The hidden value of doing nothing

In many cases I give advice that sellers do not expect: skip that upgrade and turn it into a selling point instead. To buyers, a home with label C often feels like an opportunity: room to make improvements themselves, make their own choices on insulation or installations and take advantage of subsidies themselves. Meanwhile you, as the seller, keep your peace of mind, save costs and can focus on your next step.

It is not about the letter, but about realism

An energy label does not constantly play the leading role in a buyer's decision-making. It is a supporting role, an extra argument, sometimes a bonus, but never the foundation of a purchase decision. Buyers pay attention to the space for the dining table, the view, the light and the garden. A home is a feeling, and that feeling is not determined by a letter on paper. So have an estate agent look at the real added value of sustainability improvements for your home.

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