We’ve been around much talk lately about the concept behind green appraisals. So, what’s the deal?
Whether you’re talking about adding a geothermal system to your home to add value for re-sale or you just want to have the value for yourself in cost savings over a period of time- you do have to think about the cost benefit analysis. How long are you going to be in your home, and are you going to recoup the cost of putting in the system. If you’re going to be in the house for more than 5 years… heck yes, you are. Are you going to be putting in a tankless hot water heater or a geothermal system if you are just going to be living in a home for 2 years? Hmmmm… probably you will end up putting in the tankless for the cost benefit analysis approach, especially in the current appraisal system when appraisers don’t have the “green know how to understand” what adds value to a home.
Some realtors who specialize in green homes will tell you that green adds value; well, that is because healthy living and the cost benefit of energy efficiency is highly desirable, and homes that are built efficiency will hold their value and event add value, while other realtors, appraisers and builders -even- don’t understand the value add of building a home that is more energy efficient and healthier. We need to find a way to help educate the masses as to why a energy efficient home should appraise at as a value add.
Obviously, it is all relative to the values and what you hold value to and even what the appraiser as an individual holds value to- it is that way with almost any product. Energy efficiency is something that you can put value to; you know that a house that bleeds you dry when you run the HVAC because it is leaking like a basket isn’t holding its value , whereas a home that has a system that is tightly constructed and properly ventilated will be much more efficient and healthy. See? Energy efficiency is something you can gauge- Some people you talk to you in the home building field- they want the energy efficiency and some people just don’t care because they don’t understand.
We want to somehow give value to green and healthy building, but we need to know how to do that. I think that there is a value in the green buildings and in the healthy and the sustainably built homes because they are built right the first time around and if you do it right the first time, you don’t have to keep reinventing the wheel, and if you’re healthier in your home, you’re saving money… right? If you get a home that is built in a healthy standard, you live a better quality of life. How do you measure that as an appraiser? How do you know what to look for in a green built home. As a home buyer, if you don’t know that a home is built to a healthy, sustainable standard, then you don’t know what you are getting, do you? Both buyers and appraisers and realtors need to be educated to know what it means to live in a healthy, energy efficient home because these homes add value.
Get multiple benefits by having someone certify your home- but is s all relative and it comes down to the appraiser and how the home is assessed by them, their knowledge of how the home is constructed, what has gone into the home as it pertains to health, sustainability and all of the variables that are there to be considered. You have to teach the appraisers, builders, realtors and even the buyers to understand – if you just do it the right way from the get go, then you will get the value of health and you will get the value of being less sick and more healthy. Energy efficiency and green items do add value to a home, you might not see it from the aesthetic outside looking in, but you can certainly see it from the cost benefit analysis we were talking about at the beginning, as well as those who have been ill in homes what were “sick homes” see the value in living in a healthier, more energy efficient home.
Appraisers need to have green items on their check lists. They need to understand that homes that are certified green homes sell more quickly than traditionally built homes across the market. They are more desirable on the pocket book, and not only do they help the pocket book the community and the individuals who live there- they help set a standard…