Commercial developers who build energy-efficient “green” buildings or invest in energy-saving retrofits can make sure the value of those features are recognized by consulting guidance issued today by the Appraisal Institute and the Institute for Market Transformation.
The 12-page guidelines, “Green Building and Property Value: A Primer For Building Owners and Developers,” are intended to help building owners and developers understand the appraisal process, and how green characteristics and data can be used by appraisers to fully maximize valuations.
Last summer two research and advocacy groups — the National Home Performance Council and CNT Energy — launched a national campaign aimed at standardizing and improving the basic data used within the residential real estate industry to report energy improvements to existing homes.
One goal of the campaign is to persuade more multiple listing services to provide “green fields” for listings that would let owners highlight energy efficiency improvements.
Last March, the Appraisal Institute published a “Residential Green and Energy Efficient Addendum,” a detailed five-page supplement that can be added to an appraisal, along with methodology to calculate the market value attributable to the improvements. Source: appraisalinstitute.org.