In response to growing concerns over the lack of standardized “green” home appraisals, the Appraisal Institute has developed and released this Residential Green and Energy Efficient Addendum. The central purpose of developing this form was to allow for a standardized method of reporting green features and certifications within residential real estate appraisal. The AI explains that the main goal is to use the form in standard 1004 reports (the most common residential appraisal report format), though the form is relatively broad and would allow for a variety of uses in other situations.
The form is to be used in the addendum section of the report. While this does not necessarily mean the appraisal process is complete simply by inserting the form, it does at least begin to address the growing problem of appraisers not identifying key green features.
For brokers, homeowners and builders, this form could be a great piece of information to complete and attach to marketing materials as to better educate consumers as to what your green property has to offer. Though the form is not heavily weighted to comparing the subject to a standard property, the “comments” section could be a great place to enter in cost comparison data as to the financial benefit of the energy efficiency of the home.
Click here for the entire Appraisal Institute Green Features Form News Release.