Why?

This purpose of this guide is to help appraisers identify the most common features found in “green” homes.

 This refers to homes that are more:

• energy efficient

• water efficient

• resource efficient

• durable

• healthy

• comfortable

than standard homes.

Why green homes? The features in green homes can 1) save homeowners money, 2) create healthier homes (increasingly important in times of rising asthma rates) and 3) create more comfortable homes in which to live.

But if appraisers don’t recognize and identify the features of green (superior, high-performance) homes, it follows that the valuation of those homes could be less than comprehensive.

The guide is not meant to be a complete repository of green information. Rather, it touches lightly on green topic, and then acts as a portal for appraisers interested in researching more comprehensive information.

Who?

This guide was created by real estate journalist Kathy Price-Robinson, who has written extensively for the Los Angeles Times, Valuation Magazine, Journal of Light Construction, Remodeling Magazine, Professional Remodeler, Urban Land Magazine, Multifamily Trends, and many other publications. Read more

When?

The idea for this guide came several years ago after the author wrote an article about Energy Star for Valuation Magazine, a publication of the Appraisal Institute. At the time, it became clear from interviews with appraisers that appraisers were largely unfamiliar with high-performance homes, also known as “green” homes.

How?

After the Valuation Magazine article on Energy Star was published, Kathy applied for a grant from The Appraisers Research Foundation (TARF) to create a guide to green building that would be helpful to appraisers. The grant proposal was accepted, resulting in this guide. (To apply for a research grant from TARF, click here.)

What now?

This guide can be used as a reference by appraisers who are appraising homes with green features. That means features that are more energy efficient, water efficient, resource efficient, durable, comfortable and healthier than standard homes.

 Eventually all homes may be labeled for energy efficiency, healthiness and resource conservation much like packaged foods now contain nutrition labels. When all homes are labeled, the appraisal process of such homes will be simpler. Already, homes are being certified “green” by several organizations, such as the U.S. Green Building Council, Energy Star and the National Association of Home Builders. Eventually, all homes may be certified.

 Until all homes are labeled or certified, it is up to conscientious appraisers to learn about the green features already in homes. Hopefully, this guide will help.

Food for Thought

Once an emerging trend, green building has become a growing part of today's construction industry. — McGraw Hill Construction

Green is a market differentiator for builders - 40% of builders state that green makes it easier for them to market their homes. — McGraw Hill Construction

Photo information

The hallway shown above is in a “green” home in Santa Barbara, California. The green features in this hallway include natural daylighting (to cut down on use of artificial lighting), compact fluorescent light bulb in fixtures (to cut down on energy use) spray-foam-insulated walls and attic (to save on cooling and heating bills), flooring made of wood certified to be environmentally harvested, and paint that contains no toxic fumes (no VOCs).

Contact

Contact the author at kathyprice(at)aol.com