Not All Home Improvements Are Worth the Investment

With spring weather arriving, consumers may be thinking about undertaking a home improvement project. But not every renovation or remodeling effort will pay off when the owner sells their home.

blog_image_4_12_12According to Remodeling magazine’s “2011-12 Cost vs. Value Report,” conducted in cooperation with Realtor Magazine and the National Association of Realtors’ HouseLogic.com, the projects with the highest expected return on investment are siding replacement, entry door replacement, attic bedroom addition, kitchen (minor remodel) and garage door replacement.

Consumers should be aware that cost does not necessarily equal value. Here are some other tips for homeowners from the Appraisal Institute: [Read more…]

Appraisal Institute Announces Support for New Solar Valuation Tool

The Appraisal Institute this week announced its support for a new tool that will assist appraisers and others seeking to establish the value of a property’s solar-powered features. The spreadsheet was developed by Solar Power Electric and Sandia National Laboratories.

Finding a way to value residential and commercial properties with photovoltaic (PV) installations is a growing challenge facing the nation’s real estate industry. As more homes and businesses turn to solar power, the need grows for ways to develop reliable and credible opinions of value of the installations and the power they generate.

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PV Value works within a Microsoft Excel spreadsheet to determine the value of a PV system. This is done using an income capitalization approach whereby the energy value is calculated over the lifetime of the PV module warranty. Inputs to PV Value include the zip code of the location, local utility rate and characteristics of the PV system. An appraisal range of value estimate is returned as a function of a pre-determined risk spread. This tool can be used to value a PV system at any location in the U.S. through its interface with the National Renewable Energy Laboratory’s PVWatts simulator. [Read more…]

Appraisal Institute Continues Leadership Role in Green Valuation

The Appraisal Institute long has been the industry leader in green valuation. Along with creating and issuing the Residential Green and Energy Efficient Addendum in September 2011 and strongly supporting the federal Sensible Accounting to Value Energy (SAVE) Act introduced in October 2011, AI has been and remains at the forefront of energy-efficient and environmentally friendly valuation practices and thought leadership highlighted by the following:

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Appraisal Institute Creates Form to Standardize Analysis of Green Home Features

As the industry leader in green and energy-efficient valuation, the Appraisal Institute in September issued an optional addendum to Fannie Mae Form 1004, the appraisal industry’s most widely used form for mortgage lending purposes.

Currently, the contributory value of a home’s green features is rarely part of the equation. The Appraisal Institute’s new form will help the industry standardize the way residential energy-efficient features are analyzed and reported.

[Read more…]