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Daily Real Estate News  |  April 18, 2011  |   Is the Value of 'Green' Lost in Appraisals?
According to recent surveys, buyers want more environmentally sensitive home features, and they are willing to pay for them. But builders say not enough appraisers are recognizing green’s worth and factoring it into their property valuations.

"Appraisers just don't get it," says William T. Nolan, a Florida consultant to home builders. "We can't get them to appreciate the value of net costs. And if we can't get the values recognized, (manufacturers) can't justify moving these products forward."

The Appraisal Institute is taking steps to change that, according to spokesman Ken Chitester, by producing several webinars and publishing a booklet to help educate more appraisers on green valuations.

But until the industry gets caught up, some say it’s up to the real estate agent or builder to make sure the appraiser used is trained in green building.

Dave Porter of Porterworks, a sustainability consulting firm in Stanwood, Wash., tells agents and home owners that it’s not “pressuring anybody” to make sure an appraiser knows the value of green attributes and has the competency to factor it into his or her property evaluations.

What You Can Do
Joseph Magdziarz, president of the Appraisal Institute, agrees and even encourages home owners to accompany the appraiser during his inspection to point out energy-saving features throughout the home so they aren’t missed.

Southwest Florida appraiser Sandra Adomatis, an expert in green valuations, encourages home owners and professionals to provider appraisers with the following information:

Provide a rating from a recognized agency that shows how the “green” home compares to a similar model that has fewer energy efficiency construction standards.
Offer a breakdown of the additional construction costs of green and energy-efficient items.
Create a chart that compares “green” features with those in code-built houses.

Source: “Value of Green Often Lost on Appraisers,” Chicago Tribune (April 15, 2011)

Read more:

New Kinds of Energy Ratings for Homes

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