The nation’s largest professional association of real estate appraisers has signed a memorandum of understanding with the state of Colorado to promote a wide use of tools to document home energy features. The groups also will jointly develop valuation studies.
The Appraisal Institute will work with the Colorado Energy Office to identify Colorado market-specific trends in energy valuation. The organizations plan to collect information about the impact of energy efficiency on the residential real estate market and to share that data as trends emerge.
The memorandum of understanding, signed by Colorado Gov. John Hickenlooper and Appraisal Institute CEO Frederick H. Grubbe, seeks to address a need for data in valuing homes with green and energy-efficient features. In addition to aiding appraisers, that data can help consumers decide which improvements to pursue as they seek to maximize the value of their homes.
Working with the state of Colorado is the most recent example of the Appraisal Institute’s leadership in green valuation efforts:
- Since June 2008, the Appraisal Institute has offered nearly 275 individual courses on green and energy-efficient valuation, and almost 4,900 attendees have participated.
- In September 2011, the Appraisal Institute released the Residential Green and Energy Efficient Addendum, the first form of its kind intended for appraisers’ use. It is an optional addendum to Fannie Mae Form 1004, the appraisal industry’s most widely used form for mortgage lending purposes. The Appraisal Institute’s addendum allows appraisers to identify and describe a home’s green features, from solar panels to energy-saving appliances.
- The Appraisal Institute in January 2011 launched the Valuation of Sustainable Buildings Professional Development Program, educating appraisers on the intricacies of valuing high-performance residential and commercial buildings. All three courses have been approved for continuing education by the U.S. Green Building Council. A fourth course – on solar valuation – will debut in February.
- The Appraisal Institute and the Institute for Market Transformation issued guidance for green valuation – “Recognition of Energy Costs and Energy Performance in Real Property Valuation” – at a forum hosted in May 2012 by the American Council for an Energy-Efficient Economy.
- In January 2012, the Appraisal Institute announced its support for PV Value, a spreadsheet developed by Solar Power Electric and Sandia National Laboratories that assists appraisers and others seeking to establish the value of a property’s solar-powered features.
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