What does the energy label mean for selling your home?

When you sell your home, an energy label goes with it. It consists of the label itself and an accompanying energy labelling report, and it has two purposes: to show the building’s energy performance and to point out the obvious improvements worth looking at.

The scale runs from A to G, and A is split into A2020, A2015 and A2010. The more recent the year, the stricter the requirements, and only the best low-energy buildings can achieve A2020. This means that even within the top category, there are differences in how energy-efficient a home really is.

On average, the sale price rises by about 500 kr. per m² for each letter the energy label moves up. For a 100 m² house, that comes to around 50.000 kr. That is the value of moving just one step up the scale.

This also answers the question of what the energy label means for the sale. Homes with a good label, that is A to C, sell faster and at higher prices than homes with a poor label in the E to G range. The label is documentation, but it is also part of what your home is worth and how quickly it finds a buyer.

The mandatory energy label and the rules on validity when selling

Since 2010, Danish law has required the owner to provide a valid energy label when selling. This applies whether you sell through an estate agent or directly to a buyer. The requirement is administered by Energistyrelsen (the Danish Energy Agency), and you cannot skip it or put it off until after the sale.

The timing is fixed too. The energy label must be available before the home is advertised for sale, and it must be visible in the advert. If you sell through an estate agent, you must pass the label on to the agent in advance, as the agent is obliged to include it in the sales brochure. The buyer must receive the label no later than when the agreement is entered into.

How long is the label valid?

A valid energy label for a sale lasts for 10 years from the date of issue. There is one important exception, however: if the home is significantly altered, a new one must be made. Replacing the heat source is a classic example of a change that resets the validity.

In practice, the 10-year validity means that a label from 2018 can still be used for a sale in 2026. So you do not need to order a new label just because a few years have passed, as long as the home has not been significantly altered in the meantime.

Exemptions: homes that do not need an energy label

Some homes are exempt from the requirement. It is worth checking whether yours is one of them:

• Detached buildings under 60 m²

• Holiday homes

• Listed buildings

• Certain buildings due for demolition

If your home is on this list, it does not need an energy label when you sell.

How the energy label affects sale price and home value

For a 140 m² house, just one improvement in the label, for example from E to D, equals a potential increase in value of around 70.000 kr. Every step up the scale makes a real difference to your sale price.

The spread is even clearer when you look at the whole scale. An A or B energy label gives an average sale price of 3.291.000 kr. for a 140 m² house, which is 37 % above the average. At the other end, F or G gives an average sale price of 1.669.000 kr., which is 30 % below the average. That is the difference between selling well above or clearly below what comparable homes otherwise go for.

Buyers pay more for a good label because the label is also an estimate of what the home costs to live in. A 150 m² detached house with a D label typically costs 15.000-20.000 kr. a year to heat. The same house with a B label costs 8.000-12.000 kr. Over 10 years the difference is 60.000-80.000 kr., and that is a cost that never leaves the budget. Buyers therefore read the label as a forecast of running costs for many years ahead, not as a minor detail in the sales brochure.

This is also where you as a seller can make a difference if your home is not at the top of the scale. If the house has a D label or worse, it can typically be raised 1-2 energy classes by carrying out the suggestions in the energy labelling report. An older house can even be lifted from G to C with a thorough renovation. The report points out the problem and at the same time shows the way to lift both the label and the value.

Buyer interest and time on the market follow the energy label

A study by Boligsiden.dk shows how clearly the label makes itself felt on both counts:

The difference in price is marked, but the time to sell is the most interesting detail. A house with a G label stays on the market an average of 67 days longer than a house with an A label. That is over two months in which you as the seller are still stuck with the costs, the uncertainty and the repeated viewings.

The pattern behind the figures is simple. Homes with a high energy label attract more interested buyers, achieve higher sale prices and spend less time on the market. So there is a direct link between the energy label and buyer interest. Buyers see the label before they book a viewing, and it helps decide which homes they choose to see at all.

A standard 130 m² house with the best label (A2020) often has a heating bill of under 3.000 kr. a year, while the worst label (G) can mean 30.000 kr. or more. The buyer feels that difference straight away in their monthly budget, which is why the energy label also affects how long your home stays on the market.

This is also where the label works as documentation. It creates greater transparency in the property sale, because the buyer can see in concrete terms what the home costs to run before making an offer. That knowledge shapes their expectations of the price and of the investments they should expect to make in the years after the handover. A poor label does not make the sale impossible, but the buyer takes it into account in their offer.

Improvements that lift the energy label and saleability

Energy labels from 2021 onwards highlight the three most obvious measures, so you do not have to go through the whole report yourself to find the most important ones. For each suggestion, the report states both how much you can save on energy costs and what the renovation costs to carry out. That makes it possible to work out whether the investment pays off before you get started.

Here are the measures that typically make the biggest difference, with the amounts and effects the report works with:

All of these measures lower your heating costs and make the home easier to sell. When you want to improve the energy label, and with it the saleability, it is about choosing the measures that give you the best value for money rather than renovating without a plan.

Make the energy label part of your sales plan with Brikk

Once you know what the label means for price and saleability, only the practical side is left. Many sellers lose time here because they only start working on the energy label for the sale once the home has already been advertised. Here is how to avoid that:

1. Check on sparenergi.dk whether you already have a valid energy label before you order a new one.

2. Order in good time, and allow 1-3 weeks for delivery from when you order. At the same time, get 2-3 quotes, as prices vary by up to 50 %.

3. Pass the energy label on to your estate agent, who must include it in the sales brochure.

The order matters. A label that only arrives after the advert is ready forces you to hold off going on the market, and those weeks can cost you both interest and room to negotiate.

It all ties in with what the home costs to run, what the buyer is willing to pay and how long it stays on the market. That is exactly why Brikk can help you build the energy label into the sales process, so that it supports price, buyer interest and saleability alike.

Also read: What is energy labelling, and how do you improve your rating?