Get Your Green Homes the Appraised Value they Deserve
Posted: Fri Nov 01, 2013 10:50 amGet Your Green Homes the Appraised Value they Deserve
http://greenexpo365.com/en/app/blog/2013/07/get-your-green-homes-the-appraised-value-they-dese_hjbj9idf.html?s=4WftZRd63lwYCCtS4N
We've all seen the “Antiques Roadshow,” where people bring in items they've had around home, and find out their belongings are worth much more than they thought. It's a very happy surprise.
Many home builders today face an opposite outcome – they build with high-performance products and practices that make their homes more energy efficient and comfortable, so rightly expect a premium. Yet, the home ends up appraising at the same level as traditional construction. This leaves them wondering, “why bother with green building?”
The “Antiques Roadshow” provides the solution to the green appraisal problem. A person with an old looking piece of furniture might ask family or friends how much they think it's worth, and receive answers of a few hundred dollars. But, when an expert in Colonial American furniture looks at the piece, he knows what it really is – noting its unique features, craftsmanship and detailing – thus appraising it at a much higher level than most people guessed. The key is finding an appraiser with expertise in the appropriate field and telling him everything you know about your property.
Because green building is still evolving, the residential appraisers you've historically worked with might not know how to fully document and value homes built with high performance features and systems, especially when such elements are not visible. It's up to appraisers, lenders, builders, realtors, code officials, and raters to collaborate throughout the transaction process .
It comes down to the formula that the industry needs to live by: accuracy + data = value. If the appraiser doesn't know – or understand fully – how your home is different from typical construction, they can't make an accurate valuation. It would be like selling a home that sits on top of a vein of gold, but not pointing that out to the appraiser, and being surprised when he assigns a lower value than anticipated. As an easy reference, check out the Appraisal Institute's “Residential Green and Energy Efficient Addendum,” which provides a handy checklist for capturing a home's full range of environmental features.
And, for in-depth info on green home valuation, EEBA is helping educate transaction process professionals on all the features built into a home, and demonstrate their specific benefits, through two intensive sessions at the Excellence in Building Conference. Join the nation’s leading experts during Selling High Performance Homes and Valuing Green Homes.
- See more at: http://greenexpo365.com/en/app/blog/201 ... rOzJP.dpuf
http://greenexpo365.com/en/app/blog/2013/07/get-your-green-homes-the-appraised-value-they-dese_hjbj9idf.html?s=4WftZRd63lwYCCtS4N
We've all seen the “Antiques Roadshow,” where people bring in items they've had around home, and find out their belongings are worth much more than they thought. It's a very happy surprise.
Many home builders today face an opposite outcome – they build with high-performance products and practices that make their homes more energy efficient and comfortable, so rightly expect a premium. Yet, the home ends up appraising at the same level as traditional construction. This leaves them wondering, “why bother with green building?”
The “Antiques Roadshow” provides the solution to the green appraisal problem. A person with an old looking piece of furniture might ask family or friends how much they think it's worth, and receive answers of a few hundred dollars. But, when an expert in Colonial American furniture looks at the piece, he knows what it really is – noting its unique features, craftsmanship and detailing – thus appraising it at a much higher level than most people guessed. The key is finding an appraiser with expertise in the appropriate field and telling him everything you know about your property.
Because green building is still evolving, the residential appraisers you've historically worked with might not know how to fully document and value homes built with high performance features and systems, especially when such elements are not visible. It's up to appraisers, lenders, builders, realtors, code officials, and raters to collaborate throughout the transaction process .
It comes down to the formula that the industry needs to live by: accuracy + data = value. If the appraiser doesn't know – or understand fully – how your home is different from typical construction, they can't make an accurate valuation. It would be like selling a home that sits on top of a vein of gold, but not pointing that out to the appraiser, and being surprised when he assigns a lower value than anticipated. As an easy reference, check out the Appraisal Institute's “Residential Green and Energy Efficient Addendum,” which provides a handy checklist for capturing a home's full range of environmental features.
And, for in-depth info on green home valuation, EEBA is helping educate transaction process professionals on all the features built into a home, and demonstrate their specific benefits, through two intensive sessions at the Excellence in Building Conference. Join the nation’s leading experts during Selling High Performance Homes and Valuing Green Homes.
- See more at: http://greenexpo365.com/en/app/blog/201 ... rOzJP.dpuf