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Make Those Green Features Count: Appraisers Add ‘Green’ Form

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  1. This is such great news. Especially where I am, in environmentally-conscious California, green homes can easily sell for quite a bit higher than their non-green counterparts (a recent LA Times article said as much as 30% more). Furthermore, due to current economic conditions, I see more and more buyers looking for homes with a lower cost of ownership (i.e. energy efficient appliances), so even those who aren’t concerned with the environmental benefits are interested in buying green homes. Thus, we really need an appraisal system that takes the added value of green features into account. I’ll definitely encourage my team to use the new form.

  2. Sue

    The green form is a great addition but the realtors need to add this additinal info on there MLS listing. It’s hard enough for appraiser to compare apples to apples because real estate agents do not take the time to completely fill out the MLS form. Some homes will say recently updated but in reality it was updated 5 years ago. An appraiser can only use information they can verify and when an MLS sheet says recently updated we believe that it was updated. People wonder why thier value is lower well remember we used that sale that said completely updated. So the current house must not be worth said selling price. Now we add a green form. How many realtors go into attic’s and look at outside A/C units. More work for appraisers and no increase in pay for appraisers.

  3. I have already used this form as a lender when we were not actually originating an Energy Efficient Mortgage and we had to educate the appraiser on where to find the actual MEMO LETTER from the appraisal institute as he did not know this existed but saw the FORM and realized this was official. But note appraisers don’t have to give it value, but it worked in my case as we were adding a new HVAC, resealing duct work, and insulation and the question was asked on the page was there any ENERGY IMPROVEMENTS and the appraiser initially stated NO, so we sent the addendum over as a reminder that he missed this feature on the escrow repair of our FHA 203k and he agreed and gave another evaluation.

  4. John Appraiser in New Orleans

    I am a certified appraiser and think that all this green stuff is just dandy but guess what? It has NOT been proven to truly increase value enough to justify the costs, except for that “Prius” effect. I have another one. The “Pottery Barn” effect. If a realtor stages a house with cool colors and stylish furnishings it usually sells higher. The when the people move in and refi a year later it is worth what the other homes like it are. My point is SOME people will pay a little extra for “Green” but we appraise for the typical buyer. Not the 1 or 2 in 100 that may come along and have enough disposable income to spend more, AFTER getting what they require in a house like 3 bedrooms 2 bathrooms, nice area, 2,000 sf, etc. they THEN choose to spend the extra money on the “Green” items. Most of us working stiffs buy a house we can barely afford… or can’t afford (remember the crash we just had)… so we don’t have the extra cash for “Green” items that reduce our carbon footprint, unless you are really into that as a social movement. IE the “Prius” people. The government has been pushing that higher balue thing for years and if it worked people like myself that flip houses would add those items. If I put Low “E” windows in a huse I do it for charity because people don’t pay extra for those houses vs. the ones with regular $200 dble pane windows. BUT I do see the value and I do add “some” value for major items, but not enough to really matter.

    Just my .02 from being in the biz as a seller and appraiser

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