Saturday, April 23, 2011

Proper Valuation of Your Green House

The value of green is many times lost in appraisals. Pitfalls are all over, but there are steps you can take make sure that they are taken into consideration in your appraisals. Green is something that is catching on in the United States and it should be something you should include in your marketing of your properties and be included in your appraisals. More buyers are interested in the green movement and want properties that are energy, water efficient. Unfortunately the lending community and appraisers seem to be behind on this concept and are not properly giving value to the investments made to make homes environmentally friendly.

It is the responsibility of the builders and real estate agents to insist that the lenders assign an appraiser that is trained in green construction. However, since real estate agents and builders are under the pressure of not influencing the appraisers decision on the value of the property, it falls on the borrower to insist on this requirement. Which it makes no sense since the borrower would prefer that those value be omitted to obtain a lower valuation of the property. This is a dilemma that needs to be addressed an insist from the lending and appraisal industry to take note and recognize the value of the efforts made to make homes that are ecologically friendly. It is imperative that the we obtain competent appraisers for this type of properties. I should be a requirement that homes with green features do have an properly trained appraiser that can recognize the value of them and properly value them. This can be accomplished without influencing the professional opinion of the appraiser.

When it comes to valuations, green is like any other feature in your property. Here are some suggestions on how to set your green home apart:

1. A rating from a recognized agency that shows how your green home stacks up against the same model built to minimally acceptable construction standards in energy efficiency.
2. A breakdown of the additional construction costs of green and energy efficient items.
3. Blueprints and detailed product specifications of the items that set your house apart from the rest.
4. A list of incentives, including tax breaks to the builder for green construction or the rebates to the buyer from the local power company, local, state or federal government.
5. A chart comparing green features with those in code-built houses.

1 comment:

  1. It was a big pleasure to drop by here and read some information. Green house for me is beautiful like my cousin's house because it is very light to see and very refreshing. The suggestions here are very interesting also and I am thankful you've shared this with us.:)