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Valuation of greened up homes
Appraisers are often unaware of emerging valuation methods available to determine the added value of a home that's energy efficient or retrofitted to green standards. Dave Porter of Porterworks, Inc., a Real Estate consulting firm that specializes in promotion, education and consultation in sustainable enterprises, is working to educate the Real Estate industry and HERS raters. Notably through its Green Lending Specialist certification.
It's puzzling to me to hear stories of appraisers that look at a PV system and scratch their heads. I've been told by some that there is little or no value placed on solar PV let alone a properly sized and engineered HVAC system. It may be that consumers need a bit of education and , if done right, they'll demand quality installation and with it, higher skilled and better paid workers.
Marshall and Swift has developed a "Green Building Costs" guide to help appraisers justify the higher valuation of green homes. It makes sense, if a home's total cost of ownership is less than another, comparable home, that means more discretionary income for the owner.
The Appraisal Institute has yet to update their 1998 (rev 1999) white paper entitled "Evidence of Rational Market Valuations for Home Energy Efficiency" but they have taken the lead by offering "Valuation of Green Residential Properties" classes.
Evidence of green homes selling faster, for more, and with a higher satisfaction rate in new construction is well established. The same logic applies to the existing home market.
The documentation below proves that new homes sell faster, have fewr callbacks, and a much higher owner satisfaction rater. Thanks to Build it Green for sending the information. PDFs can be found at:
http://calhers.org/downloads/2009/value_add_BiG/
# 08 JD Powers HB Green Building Report - FINAL.pdf
# Atlanta.YTD Green Home Sales.pdf
# BKI Undervaluation of retrofits.pdf
# Built Green Value Analysis Report.pdf
# Cascadia GB Value Study 2009.pdf
# Green Advantage Market Impacts of Certified Homes GBVI_Report.pdf
# Marketing Value Analysis BGVI.pdf
# McGraw Hill Report.2009.pdf
It's puzzling to me to hear stories of appraisers that look at a PV system and scratch their heads. I've been told by some that there is little or no value placed on solar PV let alone a properly sized and engineered HVAC system. It may be that consumers need a bit of education and , if done right, they'll demand quality installation and with it, higher skilled and better paid workers.
Marshall and Swift has developed a "Green Building Costs" guide to help appraisers justify the higher valuation of green homes. It makes sense, if a home's total cost of ownership is less than another, comparable home, that means more discretionary income for the owner.
The Appraisal Institute has yet to update their 1998 (rev 1999) white paper entitled "Evidence of Rational Market Valuations for Home Energy Efficiency" but they have taken the lead by offering "Valuation of Green Residential Properties" classes.
Evidence of green homes selling faster, for more, and with a higher satisfaction rate in new construction is well established. The same logic applies to the existing home market.
The documentation below proves that new homes sell faster, have fewr callbacks, and a much higher owner satisfaction rater. Thanks to Build it Green for sending the information. PDFs can be found at:
http://calhers.org/downloads/2009/value_add_BiG/
# 08 JD Powers HB Green Building Report - FINAL.pdf
# Atlanta.YTD Green Home Sales.pdf
# BKI Undervaluation of retrofits.pdf
# Built Green Value Analysis Report.pdf
# Cascadia GB Value Study 2009.pdf
# Green Advantage Market Impacts of Certified Homes GBVI_Report.pdf
# Marketing Value Analysis BGVI.pdf
# McGraw Hill Report.2009.pdf
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© 2012 Created by Victor Ramayrat.
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