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| Appraisers See Green With New Form |
New Form Allows Appraisers To Add
Value For Homes That Are Going Green
Builders who have put energy efficient features in their houses will finally get to see their
efforts recognized. A new form has been added to the appraisal report. This three page form
will detail the "green" aspects of the house and give an accurate analysis of the added value.
The most common appraisal form is the form 1004 from Fannie Mae. This form has several
short comings because it does not adequately address energy efficient features. A builder
could load up his home with Energy Star appliances, solar panels and low emissivity
windows, and these values would never show up in the appraisal reports.
Since the "green movement" started gaining popularity around 1980 builders have been
trying to get credit for the energy efficient houses they have been building. The new form has
been approved by the National Association of Home Builders (NAHB) and the Appraisal
Institute. The Appraisal Institute represents about 24,000 appraisers across the nation.
There is also a benefit to the homeowner. In the past, the money spent on making the house
more energy efficient went for naught. When the house is sold the costs were never
recovered.
But there are still issues to be resolved. The new form is not mandatory. Some appraisers will
use it and some won't. Those that use the form should be competent in evaluating green
houses.
Another issue is the omission of the National Green Building Standard, the only residential
green building rating system approved by the American National Standards Institute (ANSI).
This organization oversees the guidelines of millions of business practices in every sector of
our economy. It is the ultimate referee and judge.
The lending sector has to come on board and support the use of the form. The real estate
agent selects an appraiser from a list of appraisers that the lenders uses.
What can a builder or homeowner do to make sure that their energy efficient features are
counted in the appraisal? The have to insist that the appraiser is competent and also that he
is using the new Residential Green and Energy Efficient Addendum.
As a back-up plan, the builder or homeowner should go to the Appraisal Institute website and
download a copy of the form. When the appraiser arrives, give him a copy. It is against the
law to try and influence the appraiser. However, if you accompany the appraiser as he walks
through the house, and you point out the energy efficient features, that's okay.
The next step in green house valuation would be to get the MLS listings to highlight the energy
efficient features of the house. It would make it easier for homebuyers who are looking
specifically for a green house.
Homebuyers should be aware that the FHA is offering special mortgages and financing for
energy efficient homes. The PowerSaver mortgage is a low cost loan.
Value For Homes That Are Going Green
Builders who have put energy efficient features in their houses will finally get to see their
efforts recognized. A new form has been added to the appraisal report. This three page form
will detail the "green" aspects of the house and give an accurate analysis of the added value.
The most common appraisal form is the form 1004 from Fannie Mae. This form has several
short comings because it does not adequately address energy efficient features. A builder
could load up his home with Energy Star appliances, solar panels and low emissivity
windows, and these values would never show up in the appraisal reports.
Since the "green movement" started gaining popularity around 1980 builders have been
trying to get credit for the energy efficient houses they have been building. The new form has
been approved by the National Association of Home Builders (NAHB) and the Appraisal
Institute. The Appraisal Institute represents about 24,000 appraisers across the nation.
There is also a benefit to the homeowner. In the past, the money spent on making the house
more energy efficient went for naught. When the house is sold the costs were never
recovered.
But there are still issues to be resolved. The new form is not mandatory. Some appraisers will
use it and some won't. Those that use the form should be competent in evaluating green
houses.
Another issue is the omission of the National Green Building Standard, the only residential
green building rating system approved by the American National Standards Institute (ANSI).
This organization oversees the guidelines of millions of business practices in every sector of
our economy. It is the ultimate referee and judge.
The lending sector has to come on board and support the use of the form. The real estate
agent selects an appraiser from a list of appraisers that the lenders uses.
What can a builder or homeowner do to make sure that their energy efficient features are
counted in the appraisal? The have to insist that the appraiser is competent and also that he
is using the new Residential Green and Energy Efficient Addendum.
As a back-up plan, the builder or homeowner should go to the Appraisal Institute website and
download a copy of the form. When the appraiser arrives, give him a copy. It is against the
law to try and influence the appraiser. However, if you accompany the appraiser as he walks
through the house, and you point out the energy efficient features, that's okay.
The next step in green house valuation would be to get the MLS listings to highlight the energy
efficient features of the house. It would make it easier for homebuyers who are looking
specifically for a green house.
Homebuyers should be aware that the FHA is offering special mortgages and financing for
energy efficient homes. The PowerSaver mortgage is a low cost loan.