GREEN APPRAISAL TIPS
Porter offered tips for helping green building pros get the most out of appraisals:
Share a copy of Marshall & Swift Green Building Costs with your appraiser. The brief tutorial on new and retrofit green building puts a monetary value on hundreds of high-performance features.
Ask local Realtors to implement the National Association of Realtors’ Green MLS Tool Kit. About 20 to 40 multiple listing services across the country have already taken part, Porter said.
Ask lenders about the FHA’s 203k loan, “the closest thing there is right now to a true green mortgage.”
Remind lenders that according to the Appraisal Institute, for every $1 in annual energy savings, a home goes up $20 in value.
Direct appraisers and lenders to www.dsireusa.org for comprehensive information on state, local, utility, and federal incentives and policies that promote renewable energy and energy efficiency.
See www.energystar.gov for a list of energy-efficient mortgages (EEMs) for new construction and energy improvement mortgages (EIMs) for retrofits.
Ask your HERS rater to fill out a “Residential Energy Report” form, which is necessary when applying for EEMs and EIMs.
Porter warned that green building advocates have a long road ahead in working to achieve full recognition by appraisers, especially with the current economy’s super-tight lending standards.
“Underwriters are already dotting their i’s and crossing their t’s,” he said.
Jennifer Goodman is Senior Editor Online for EcoHome.