Last month the Appraisal Institute published their green addendum which can be attached to any appraisal. The addendum won’t guarantee that the homeowner or builder will get their increased property value for the green features added but what is guaranteed is that it will at least be looked at.
The new addendum can be downloaded filled out and submitted as part of the appraisal to the lender. Some of the key points are to make sure that the energy saving features are listed accurately and if you can provide any records of energy production or savings these would be documents that should be included.
Any third party certifications (LEED, Energy Star, Built Green, Earth Advantage) documentation should also be included for review. Appraiser using the new addendums will be better equipped to compare like features and properties much easier when determining value.
Seattle builder Martha Rose mentions that she already filled out both the Appraisal Institutes’ Residential Green and Energy Efficient Addendum along with the High Performance Home Addendum from Earth Advantage filled out for her new homes, City Cabins. “I typically will include any third party energy estimated usage reports along with lots of photos of the construction methods we use.” “Typically we won’t get full credit for all the components that go into building a high-performance home but it’s a good start” comments Rose.