A “green” or “high performance” home refers to a residence that has less of a net impact on the environment than its traditional alternative. If you’re interested in becoming a green home appraiser, you may be wondering, “What makes these types of assignments unique?” There are many things that make green home appraisals different from typical residential appraisals. Here are just three main differences.
1. Green homes tend to be high-quality homes
Since being energy-efficient is one of the hallmarks of a green home, these types of homes tend to have a more a efficient envelope which requires more meticulous assembly and higher quality materials and design. As such, green homes tend to be higher quality than non-green homes.
2. Comps may be hard to come by
Because green homes are an emerging sector of the residential construction industry, there may not be many green homes in an appraiser’s geographic area, resulting in more research for the appraiser. However, this can be compensated with more time allocated to a valuation and a higher fee.
Further reading: 5 Tips for Appraising Green Homes
3. Many green features are not visible to the naked eye
While it’s easy to note energy efficient appliances and solar panels on the roof, many green features are not as obvious to the naked eye, particularly related to energy efficiency. Examples include insulation and its careful installation, higher efficiency HVAC systems with duct sealing, and more highly insulative windows and doors. Taking these features into account requires a thorough understanding of green home valuation techniques and best practices.
Did you know?
As an appraiser, you are required under Fannie Mae, Freddie Mac, and FHA guidelines to consider energy efficient features when valuing a property. While it is not the appraiser’s job to determine whether or not a home classifies as “green” or “high performance,” it is incumbent upon the appraiser to take the value that these materials and practices bring to the home into account.