Appraising a home is difficult work that’s made more difficult with the growing popularity of high-performance homes. Appraisers have access to training to learn how to better value energy-efficient homes, but a lot of what’s in the home is behind the drywall. Or may not be apparent with a site visit. Which is why I like this addendum created by the Sustainable Finance department of the Earth Advantage Institute.
The appraiser can take the addendum and (1) attach the first page to the appraisal report, (2) incorporate the findings from the addendum in the energy-efficiency section of the appraisal report, (3) use the costs and items included to arrive at the value of the home, or use some combination of these three options.
This gives the appraiser more information and, perhaps, some help in deciding whether to make positive and negative adjustments when it comes time to evaluating comparable properties. I see this as a great resource … green appraisers, what do you think?
Article tags: appraisal, Earth Advantage Institute, how to