“Green” homes are expected to account for around one-third of new home construction by 2016, but do appraisers know how to value them?

Genworth Mortgage Insurance’s chief appraiser, Adam Johnston, says green features and benefits that drive value can influence how the company underwrites borrowers and values homes. Lower utility bills can make a home more affordable over the long term, for example.

But there’s no standard definition of what features make a home “green” — Genworth thinks the definition should include sustainable construction practices, use of energy- and water-efficient appliances, and energy-efficient windows and insulation (including retrofits).

Efforts are underway to develop education, standardization, measurement and verification guidelines that would allow homeowners to reap the benefits of green design.

The Appraisal Institute, the largest group representing real estate appraisers, publishes a “Residential Green and Energy Efficient Addendum” that includes an online tool to compute the market value of solar photovoltaic systems.

The addendum is designed to help appraisers, but is also a potential marketing aid for Realtors, Inman News columnist Ken Harney reports. The addendum can be attached to any listing in an area where the local MLS hasn’t added “green fields” to their data input forms.

Only about 210 of the 860 MLSs in the U.S. have done that so far, Harney reported in March. The National Association of Realtors, homebuilders, appraisers and environmental groups strongly support the move to properly recognize the value of green improvements, and have sought to encourage MLSs to add green fields to listing forms through a campaign called “Green the MLS.” Source: prnewswire.com

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Don’t miss out! Inman Connect Las Vegas is this week and you can catch all the excitement with a virtual ticket.Register Now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription