About time!

It seems that the appraisers have finally decided to get on board with new building protocols. According to the link below, the appraisal industry is making efforts to educate its members on the value of “green” and the building of high performance homes. This is not unlike the new “green” fields available now in most Multiple Listing Service listings (see: The Green MLS Tool Kit).

One of the main issues the appraisers have had is that there has been insufficienct sales data to support (or quantify) the value of high performance home building. The appraisal industry, as a whole, is built on a business model that is high-volume and low margin. There are no incentives for them to take any risk and push the envelope on a home appraisal. So, in some respects, I can understand why they haven’t given any value to the new types of building technologies. “Show me the money” ala Jerry Maguire, right?

It appears that the appraisers are starting to wake up to the fact that more houses are being built in this style. Whether being driven by market forces or the changing municipal codes, “green” and high performance homes continue to make up a large(r) portion of the new home market. I applaud them for learning more about what constitutes a high performance “green” home. It’s an educational process that needs to also include realtors, and, most importantly, the general public.

Source: Appraisal Institute Launces “Green” Valuation Program