Opinions of Value

Your source for appraisal news and trends

Menu
  • Home
  • AI Resources
  • Education
  • Publications
  • Professional Practice
  • News
  • Advocacy
  • About Us
You are here: Home / green valuation / How Important is HERS to Appraised Value?

How Important is HERS to Appraised Value?

March 21, 2018 by Appraisal Institute Staff

guest blogger banner

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.

An appraiser will have limited knowledge of the energy efficient features without the Home Energy Rating System report. Appraisers are not trained in building science and energy evaluations. They do not carry a blower door, duct blaster or infrared camera in their bag of tools when inspecting a home. However, the appraiser can rely on an independent, third-party opinion of the home’s energy efficiency by understanding the home’s HERS rating.

The HERS Index was created in 2006 by the Residential Energy Services Network, known as RESNET, and has become the gold standard for rating the energy efficiency of a home. A HERS rating is based on a scale from 0 to 100+, where a lower number means the home will be more energy efficient. A HERS Index score of 100 represents a home built in compliance with 2006 energy efficiency standards, while a score of 0 represents a home that produces about as much energy as it consumes on an annual basis.

While more MLSs are seeing the HERS searchable field populated, that is not the only place appraisers, agents or buyers can find the energy rating. RESNET and the Appraisal Institute will be launching an Appraiser Portal, which is a new online portal that will allow AI professionals focused on residential valuation to access important information about the energy efficiency of more than 2 million homes across the U.S. As buyers become more aware of how useful the HERS rating is to their buying decisions and estimating monthly energy costs, sales data will quickly show why a property sold for more with a low HERS rating compared to a similar house with a higher HERS rating.

Appraisal Institute Portal Screenshot

View a short video that explains the portal here.

For new construction, the appraisal is typically done from plans and specifications when a mortgage is required. Because a Confirmed Rating, which is included in the Appraiser Portal, is not possible until the house is built, the appraiser usually never sees the HERS Rating – and therefore never considers energy efficiency as a feature to be analyzed.

This will change as the secondary mortgage market guidelines continue to change with more emphasis on energy and green features. Fannie Mae, Freddie Mac, and FHA already require the appraiser to describe and analyze energy or green features. What better way to describe and analyze than to have a HERS Rating that takes the guessing out of the opinion!

To kick off the launch of the Appraiser Portal, RESNET and the Appraisal Institute are co-hosting a webinar for AI professionals at 2 p.m. EDT March 28. A few days prior to the webinar, all AI professionals focused on residential valuation will receive an email with a username and password to access the portal. The webinar will provide an overview of valuing green and energy efficient homes and a demonstration of how to use the new portal.

Register to attend the webinar here.

Adomatis 2017Sandra K. Adomatis, SRA, LEED Green Associate, is a nationally recognized expert on green and energy-efficient valuation. She has developed residential green appraisal courses and seminars for the Appraisal Institute and is the author of the AI-published book “Residential Green Valuation Tools.” Follow her on Twitter at @sadomatis.   

 

 

 

Ryan Meres headshotRyan Meres, RESNET program director, has 10 years of experience in energy efficiency, energy policy and building energy codes and has published more than two dozen case studies, reports and resources on those topics. He is a LEED Accredited Professional, an ICC Certified Residential Energy Inspector/Plans Examiner and holds a bachelor’s degree in architecture from the Savannah College of Art and Design. Follow him on Twitter at @RyanMeres. 

Filed Under: green valuation, HERS Index, HERS rating

Latest Posts

  • Appraisal Institute Annual Conference Kicks Off Next Week July 29, 2022
  • Online Registration Closes Soon for 2022 Annual Conference June 24, 2022
  • Annual Conference Registration Now Open May 27, 2022
  • Keynote Speaker Announced for 2022 Annual Conference April 29, 2022
  • A Look Inside AI Education: Desktop Appraisals (Bifurcated, Hybrid) and Evaluations Seminar Preview April 21, 2022
  • PAVE Action Plan Released, AI Provided Input March 25, 2022
  • 4 Innovative Commercial Building Features That Could Prove Difficult to Appraise March 15, 2022
  • Share Your Expertise at this Year’s Appraisal Institute Annual Conference February 25, 2022
  • Technology Can Aid, Not Replace, Appraisers February 17, 2022
  • Fair Housing Report on TAF Released, PAVE Report Expected Next January 28, 2022

Posts by topic

  • 2014 Presidents message (5)
  • 2015 President's Messages (12)
  • 2016 President's Messages (8)
  • 2017 President's Messages (13)
  • 2018 Annual Conference (5)
  • 2018 Appraisal Institute President's Messages (3)
  • 2018 President's Messages (9)
  • 2019 Annual Conference (8)
  • 2019 President's Messages (12)
  • 2020 Appraisal Institute President's Messages (8)
  • 2020 President's Messages (5)
  • 2021 President's Message (8)
  • AI Connect (5)
  • AMS (2)
  • appraisal bias (1)
  • appraisal careers (17)
  • Appraisal Insstitute designatons (2)
  • Appraisal Institute (220)
  • Appraisal Institute Annual Meeting (8)
  • Appraisal Institute Annual Meeting (4)
  • Appraisal Institute blog (10)
  • Appraisal Institute Body of Knowledge (3)
  • Appraisal Institute chapters (1)
  • Appraisal Institute designation (5)
  • Appraisal Institute Designations (8)
  • Appraisal Institute Education (2)
  • Appraisal Institute Green Addendum (2)
  • Appraisal Institute media coverage (6)
  • Appraisal Institute volunteer opportunities (3)
  • appraisal legislation (4)
  • appraisal myths (3)
  • appraisal regulation (8)
  • appraisal threshold (5)
  • appraisal thresholds (4)
  • appraisal waivers (1)
  • appraiser diversity (1)
  • appraiser trainee (1)
  • Appraisers (9)
  • Arbitration (2)
  • arbitrator (1)
  • association management system (1)
  • automated valuation models (1)
  • AVM (1)
  • Bifurcated (1)
  • Bifurcated Appraisal (2)
  • big-box properties (1)
  • Call for proposals (1)
  • Candidate for Designation (3)
  • Candidate for Designation (3)
  • challenging appraisals (1)
  • co-op appraisals (1)
  • condo appraisals (1)
  • conservation easement appraisals (1)
  • conservation easements (1)
  • consumer appraisal information (11)
  • coronavirus appraisals (1)
  • designations (3)
  • desktop appraisals (2)
  • Diminution valuation (1)
  • exterior appraisals (1)
  • FHA appraisals (1)
  • FHA Handbook 4000.1 (1)
  • green valuation (9)
  • HERS Index (1)
  • HERS rating (1)
  • Highest and best use (2)
  • home appraisals (7)
  • home inspections (3)
  • Home Renovations (2)
  • Home Winterization Tips (2)
  • Hybrid Appraisal (1)
  • International outreach (1)
  • International Valuation Conference (5)
  • landscaping and appraisal (2)
  • landscaping and property values (2)
  • Main (10)
  • market analysis (3)
  • multifamily appraisals (1)
  • office building appraisals (1)
  • office property appraisals (1)
  • oil spills (1)
  • overhead transmission lines (1)
  • property tax appeals (3)
  • PUD appraisals (1)
  • relocation (1)
  • Residential Appraisal (1)
  • residential appraisals (8)
  • residential appraisers (4)
  • RMAT (1)
  • rural property (3)
  • social media for appraisers (2)
  • solar (1)
  • SRA designation (1)
  • TAF (1)
  • taxes (1)
  • technology and valuation (2)
  • testimony (2)
  • The Appraisal Foundation (1)
  • The Appraisal Institute (105)
    • 2022 Presidents Messages (3)
    • Appraisal Institute Review Designations (1)
  • The Appraisal Journal (2)
  • timeshare appraisals (1)
  • transportation (1)
  • Trial preparation (1)
  • USPAP (2)
  • valuation careers (10)
  • volunteer (1)
  • Volunteers of Distinction (8)

RSS AI News

  • Hybrid Appraisals Can Offer New Opportunities for Appraisers: The Appraisal Journal August 11, 2022
  • Rapid Growth and Influx of New Residents Pushes Austin Affordability to the Limit: Valuation Magazine July 26, 2022
  • New Appraisal Institute Book Shares Advice for Appraisers in Real Estate Arbitration July 7, 2022

RSS Industry News

  • US Needs 4 Million More Apartments by 2035, Research Shows August 3, 2022
  • Federal Reserve Planning More Rate Increases to Curb Inflation August 3, 2022
  • Economy is Slowing, Housing Starts and Home Sales Both Decline, Data Reveals August 3, 2022

Follow us

icon_youtubeicon_linkedinicon_twittericon_rssicon_facebook

About this blog

Opinions of Value provides the appraiser perspective on developments in the valuation profession, insight on legislative and regulatory issues and outlook on industry trends.
Terms of Use | Disclaimer | Guest Blogger Guidelines

Dotcomm Award

Copyright © 2022 · Genesis Child on Genesis Framework · WordPress · Log in