Knowledge is Power – And more Money On An Appraisal (reprinted from the original post 8/13/13.)
It goes without saying that Knowledge is Power, but it can also be More Money On an Appraisal. August 13, 2013, was the final day of two Appraisal Courses, Introduction to Green Building and Case Studies in Residential Green Buildings. There were 24 appraisers who earned their Green Certification, along with 16 CEU’s in Phoenix, Arizona. The instructor, Sandra Adomatis, (Punta Gorda, FL) is the Past Vice Chair of Education for the Appraisal Institute.
As a volunteer with the Residential Green Building Committee, U S Green Building Council, Arizona Chapter, it’s been awesome helping to put this together and a learning experience.
Sitting in the class (8/13/13) alongside 24 appraisers, a HERS Rater, a lender, and an attorney, I learned of the connection between the appraiser and the underwriter and the methods used to add value to homes with green features.
We, as realtors oftentimes want to blame appraisers for low values, when we should be working alongside them. The best methods for gaining value for homes with OR without green features is to provide information.
Communicate with the appraiser on the phone BEFORE they arrive at the home. Ask them if they have experience in appraising homes in the neighborhood AND with green and energy efficient features. Ask them if they are familiar with the Residential Green & Energy Efficient Addendum. If not, ask the lender to search for one on their AMC list. Knowledge is Power – And More Money On An Appraisal.
On the day of the appraisal, meet the appraiser at the home and bring the comparable sales, disclosure statements, copy of the contract and addendums, a list of all improvements, and the Green & Energy Addendum that you’ll find on the Appraisal Institute website. With these in hand, the appraiser has the tools necessary to make a more accurate opinion of value.
If you are listing a home with green and energy efficient features and are not familiar with them, partner with a green agent. It’s a win win for everyone because the seller will feel confident they will be gaining as much value as possible. Not only will you stand a better chance of an appraisal coming in higher, but the buyer now understands what features are in the walls, mechanical systems, and other components. The buyer will see these relayed to them in their appraisal as an attachment on the Green & Energy Efficient Addendum.
It’s wise to use an agent trained in this field of expertise or you could be leaving money on the table with a low appraisal. And if you have family or friends in other states looking to buy or sell real estate give me a ring I know the BEST agents!
Knowledge is Power – And More Money On An Appraisal.
Thank you to our sponsors, APS, SRP SW Gas, USGBC AZ Chapter, Energy Inspectors and GE!