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 Home buyers are beginning to see the value of energy efficiency. Home sellers are looking for an edge when selling their homes. The HERS index score is an excellent indicator of the efficiency of a home and is used for many incentive programs. The costs involved are minimal compared to the value of having a lifetime energy plan for the home.
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Valuation of greened up homes
Appraisers are often unaware of emerging valuation methods available to determine the added value of a home that's energy efficient or retrofitted to green standards. Dave Porter of Porterworks, Inc., a Real Estate consulting firm that specializes in promotion, education and consultation in sustainable enterprises, is working to educate the Real Estate industry and HERS raters. Notably through its Green Lending Specialist certification.
Marshall and Swift has developed a "Green Building Costs" guide to help appraisers justify the higher valuation of green homes. It makes sense, if a home's total cost of ownership is less than another, comparable home, that means more discretionary income for the owner.
The Appraisal Institute has yet to update their 1998 (rev 1999) white paper entitled "Evidence of Rational Market Valuations for Home Energy Efficiency" but they have taken the lead by offering "Valuation of Green Residential Properties" classes.
Evidence of green homes selling faster, for more, and with a higher satisfaction rate in new construction is well established. The same logic applies to the existing home market.
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Real Estate