With the housing market recovery beginning to take shape, we see green home construction and remodeling on the rise as consumers look to combine home comfort with energy efficiency and cost savings. However, home appraisals have traditionally ignored the value added by green building features and, although putting a value on green properties continues to be a challenge because of a lack of comparable sales, some progress has been made. For example, Governor John Hickenlooper recently signed a memo with Appraisal Institute CEO Frederick Grubbe that stated the Appraisal Institute official’s plan to work with the state’s Energy Office in identifying Colorado market-specific trends in energy valuation. The organizations plan to collect information about the impact of energy efficiency on the residential real estate market and to share that data as trends emerge.
The release specifically said that the memorandum “seeks to address a need for data in valuing homes with green and energy-efficient features. In addition to aiding appraisers, that data can help consumers decide which improvements to pursue as they seek to maximize the value of their homes.”
The signing of the memo ultimately promotes the appraisal of home energy-saving features and helps to develop valuation studies with state officials. From a real estate broker’s perspective, I see homes sell more quickly, and often times for more money, when they have certain green features.
