As more and more properties undergo improvements to incorporate green and energy efficient features, a new tool is up to help appraisal officers and other users to establish the valuation for green homes.
The Appraisal Institute did the updating of the Residential Green and Energy Efficient Addendum. It is purposely designed to help appraisers thoroughly analyze data and make analysis reports that are more consistent and easily understandable under the mortgage industry standards.
Appraisal Institute President Jim Amorin, MAI, SRA, AI-GRS said, “The objective of this Addendum is to standardize the communication of the high-performance features of residential properties” He added, “The Appraisal Institute encourages builders, contractors, homeowners and third-party verifiers to complete the Addendum and present it to appraisers, real estate agents, and lenders.”
The addendum was initiated in September 2011 and was most recently updated last March 2013.
Giving Your Home a Greener Make Over
A green home is a house designed to be sustainable, energy efficient and environmentally friendly.
It is a residential property remodeled or constructed with a conscious effort to help conserve energy, water, make sustainable and cost effective methods to produce less waste.
The Office of Energy Efficiency and Renewable Energy as incentive programs to help offset the cost of making energy efficient improvements. There are also tax rebates and incentives for green homeowners in some states.
The Energy Efficient Mortgage (EEM) of United States Federal Housing Administration (FHA) is also a program that provides borrowers access to credit if they wish to make energy efficient improvements in their houses.
There are many benefits coming from a green home. It saves you not just energy and resources but also money. If you are considering making your home more environmentally-friendly, talk to a lender about it.