The Quick Green Blog - An Appraiser View

RESNET was a great opportunity to meet with EnergyStar/green builders and learn more about their concerns and issues.  We also got to share our experiences with appraising green construction.

Let's just say there has been a great deal of frustration for everyone.  And there also seems to be consensus that we need to deal with things on two fronts: 

• Data Collection - No one currently has reliable information on sales histories/market value of green homes.  For value to be recognized by everyone, there needs to be a common means of both capturing and retrieving the key technical specs and sales information.
• Education - With so many parties involved, with so many different concerns, this is going to be a complicated process. 
  • Builders need to learn what information is needed by the other parties and how this can be communicated
  • Realtors need to learn how to price, list and compare green features
  • Lenders need to learn how energy savings translate into enhanced value
  • Appraisers need to learn which features contribute to value and how to find other comparable properties.

These efforts also need to be approached in a manner which provides consistency.  Current practices make it difficult to make comparisons among different properties, a critical element for appraisers.  Sam Rashkin of EPA is lining up a series of meetings with different constituencies to outline some proposals to advance the state of things.

Finally, there remains a huge gap in awareness.  Far too many realtors, lenders, and appraisers still consider this a "fad", and choosing to ignore the growing green trend, particularly in the Triangle market. 

Are they right?  What do you think, and what directions do you think we need to take?  Take just a minute and let's discuss this.  Your feedback is appreciated.