An interesting story...

My current client had spoke with a few real estate agents in our area.  All the real estate agents told the homeowner he needs an appraiser to price the home for listing because of the declining market.  The homeowner had 2 appraisals that came in about $30,000 less than we expected...

I now have a client for life.
        I let the homeowner talk for about a 1/2 hour or 45 minutes.  I realized this person knew he had an an energy efficient / green home and didn't know how to word it.

We toured the "WOW" home.  At the end of the tour we sat down to talk.  He asked me what I thought about the appraisals he received.  I explained, "the appraisals that you have are useless."  He looked at me with a huge question mark.

I was able to explain that he needed a HERS (Home Energy Rating Score) by a RESNET (Residential Energy Services Network) person before the appraisals.  The RESNET person will put in the report the score of the home and the "value added" because of the rating and home energy savings.  I also added information about special loans for buyers that may purchase his home.

    He trusted my advice.  He called, energy auditors, LLC.  David Nash took his equipment to the home and preformed the test.  This home was proven to be an energy efficient home.  While at the Michigan Realtor Conference the client called me totally excited about his progress.

   The report will given to an appraiser for an accurate "opinion of value".

To be continued...

Have a special "Green or Energy Efficient Client" in Michigan.  I love referrals...

Angie@AngieRidley.com

 

 
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2 Comments on Appraisal for Declining Market or Energy Efficient Home...

NOV
01
Outside Blog

Great story Angie...congratulations. You did a great service for your client.

Lack of training for appraisers is a serious issue in evaluating energy efficient green homes. I believe the Appraisal Institute is now offering resources for appraisers to understand how to value green homes. Here is a link to information about what they are doing. Information is a good start, but I believe AI needs to move toward some sort of a certification for appraisers that will train them how to value the green features and benefits.

Cheers,

John Thomas

3:42pm • #1
1 Featured Post

John,

Thanks for the link.  I am meeting with Mr. Nash and the homeowner to discuss the report on Tuesday.  I'm prety excited about it.

Thanks...

7:09pm • #2

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Angie Ridley Broker, EcoBroker Certified , Mid and South Eastern MI

Flint, MI

More about me…

Complete Realty, LLC

Address: 2442 E Maple Ave, Suite 209, Flint, MI, 48507

Office Phone: (810) 744-4600

Cell Phone: (810) 730-4532

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