By the time you find another house the rates will go up.  By the time you close the rates will go up.  By the time the first bill arrives the rates will go up.  By the time you read this the rates will go up.  

The breaker box has 20 switches that can be turned off.  You want the butter, you get the calories.

It should not matter, Praful.

Utility is something that is more personal!

Utility bills can be high for a variety of reasons.  Some homes are definitely built more energy efficient, many newer homes are.  However, a homeowner can do quite a few things to lower utility bills - radiant barrier, solar screens, energy efficient appliances/HVAC, trees around the house, all can favorably impact energy consumption... some of these may not be very expensive to do either... Many electricity companies offer free energy audits also to let owners know where bottlenecks are.  I would offer these suggestions to help them.

I encourage buyers to understand what they're signing up for and decide how to proceed from there.  I don't push.

Praful - First off, I would not encourage or discourage my client to buy any home as that is their decision. I would review the utility bills with my clients, figure out how far out of line they really are (based on averages of comparable sized homes and time of year), as well as ask the listing agent if they know anything about why the utility bills were so high. Based on those results, I would ask the buyers if they wanted to move forward and make an offer. I might even suggest that we put in a contingency regarding an energy audit, and if something signifigant comes up, the buyers would be able to cancel the offer.

If they decided to move forward, a home inspection may also provide additional information, and may require a specialist to come out and examine the energy efficiency of the home. Again, if something comes up, that can be a negotiating item - to fix anything that needs repair, to offer a lower sales price, or to cancel the contract. All things the buyer must decide after I provide them with the information and data, so they can make the best decision for them. 

You know that I am not a realtor or a broker, but , I really think this is a decision best left to the buyers.  And, not something that the selling realtor needs to weigh in on.  They should know that utility bills can be very subjective, and, if they don't , you might suggest a website for them to compare usage in their area.

Praful, more investigation needs to be done and the age and construction of the home need to be factored in as well as personal preferences for temperature settings.  If it is a 100 year old farmhouse on a wind swept plain with original windows and a 30 year old furnace we probably have our answer why the bills are so high.  It would be a costly remedy to get those bill down.  All we can do is point them in the direction and they need to evaluate if their budget can handle the bills.  It is their call!

I would educate my buyers about different ways to reduce your utility costs. The high rates that the current owners havecan certainly be reduced through conscientious efforts!

If the utility bills are a deal breaker, the buyer can not afford this house.

I would say, "This house is not for you."

If you have the courage, watch what a pull back does.

THEN you advise regarding the government funded energy audit and discounted services available to address the issue.

The negotiated price will be reflective of the need for replacement windows, aged HVAC and appliances.

Utilities and taxes CAN NOT be purchase criteria. If they are, the buyer is not yet a qualified home buyer and will be flying too close to the sun. If the buyer precedes make sure they are buying a WalkableHome with the inherent economic safety net.

I don't like to nudge the client either direction. I like to draw out the facts; explain the total cost of home ownership; point out ways in which the numbers might work and let them decide. After-all, I don't want them to feel that an agent is talking them into anything.

I guess it would depend on how much out of line the bills were. Depending on the home, I might suggest that a somewhat lower offer be written, but it would depend on what neighborhood comps are.

I'm often asked about utilities expenses, but it was never a reason to reject a house. AR expense can run really high in L.A., same with water bill.  But it depends how much they use.

Is the high usage seasonal? If electricity is used for heating, maybe the buyers should consider a different system like heat pump, fireplace insert, etc. But I would certainly also have the home inspector look at the insulation. As the agent, I would check around, see what others are paying, if it is truly higher than normal. Once all the information is in, plan a strategy that might or might not involve asking for a reduction in the sales price.

I would suggest that we go back for a second look to try to understand why the utility bills are high- to see if there is any other reason than personal lifestyle of the sellers. Are the windows old? Is the furnace old? Is there no insulation in the attic. If it looks like there are structural reasons in the house to cause the high utility bills, then we might discount the offer because the buyers will need to make repairs/improvements- but it could well be the personal lifestyle of the sellers. In Montgomery County MD the seller is required to provide a summary of utility bills by month for gas, electric and/or oil - I think it is  a meaningless exercise. 

The cause of the higher than average bills must be determined. I had one house where the seller liked it 80 degrees inside. This certainly meant higher bills. Did the inspection turn up anything lack of insulation? If the buyers dream home, some issues with higher utility bills can easily be taken care of. 

It things are that tight in their budget then maybe they should reconsider buying a home.

I would probably try to calm them down and talk to the list agent about why they are so high.  It could be fixable...

Praful, there are many reasons for higher or lower utility bills.  It may be something to do with the house or it may just be because of the lifestyle of the current owners.   If it's the house, the home inspection should reveal deficiencies in insulation, heating or cooling systems, etc.  For llifestyle, I recommend to buyers to call the utility company and based on one of their own current bills ask them about the cost in their new location. 

It all depends if they are from out of town or not. I have clients from all over move here and are either shocked how low or high rates may be. Those rates are constant across the whole spectrum and so I would have them make the offer if it 80-90% of what they are looking for...

I wold go back through the home and try and see what is the cause of some of the high cost.  it may be extra appliances...bad doors and windows, no ins. in the attic. Ect.

I try to do neither. I never wanyt to force a buyer into such a big decision. My strategy is typically to point out the pros and cons of each property.