The Appraisal Institute continues its thought leadership related to “green” valuation, and for appraisers looking to expand their business, abundant opportunities exist in this area. That’s the topic of the On Point column in Valuation magazine’s third quarter 2018 issue.
By Sandra K. Adomatis, SRA, LEED Green Associate, and Ryan Meres, RESNET program director
Most builders and sales agents admit that in the homebuying process, the decision is usually all “hers”! That’s also true in the valuation process of a new construction home that is touted as an energy efficient or green home: a key part of the process should be HERS – the Home Energy Rating System report.
By Sandra K. Adomatis, SRA, LEED Green Associate
The AI Reports® Residential Green and Energy Efficient Addendum has a new look and enhancements that make it more useful in the real estate industry. As building science changes the way homes are built, the Addendum also must change to remain relevant.
The appraisal form 1004 used by the mortgage industry does not address the current building methods or terms, and the use of the Addendum empowers appraisers to meet the appraisal standards in describing the property type and relevant characteristics.
The following is a guest blog by Timothy P. Runde, MAI, LEED AP
Valuation of solar photovoltaic systems is emerging as a must-have competency for commercial appraisers, but developing a credible opinion of value can be challenging. Whether you’re new to solar valuation or you have a portfolio of valuations under your belt, here are five questions worth considering for your next solar PV assignment. [Read more…]
In a new video from the Appraisal Institute, Sandra K. Adomatis, SRA, discusses the green valuation tools that are available from the association and how they can help appraisers.
Since 2008, the Appraisal Institute has served as the thought leader in educating appraisers in green and energy-efficient valuation for both commercial and residential properties.
The future for residential and commercial properties shows that all lights are “green” for energy-efficient valuation. As green and energy-efficient buildings become increasingly mainstream, appraisers who are regarded as knowledgeable and experienced in this area of practice may find new opportunities for assignments.
The majority of construction firms of single-family homes responding to a McGraw-Hill Construction survey reported that more than 15 percent of their projects are green, with that number expected to rise to 84 percent by 2018. Green also is growing in commercial construction with 40 to 48 percent of nonresidential construction being classified in that category.
The Appraisal Institute is providing the tools appraisers need to hone their skills, to be recognized as leaders in green valuation and to provide clients with the most current information available.
While some appraisers have made green valuation part of their practice, others are probably aware of energy-efficient properties and features but haven’t considered pursuing professional opportunities in this area.
For valuation professionals who are on the fence about whether it’s worthwhile to expand their knowledge and skills, consider that according to the U.S. Green Building Council there are as many as 150,000 LEED-certified green housing units worldwide, a number that more than doubled between 2011 and 2013.
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. [Read more…]