Published Nov, 30, 2010
by Melisa Camp
First thing clients want to know: “How much is she worth?”
Proving the Value of a Green Home
Green homes sell faster and for more money, according to Al Medina, National Association of Realtors, GREEN REsource Council Director. Medina reported on studies conducted in Seattle, Portland, and Atlanta at GreenBuild in Chicago on 11/18/10. Atlanta is one example of where green certified homes sold 31 days faster in 2009 and 14% faster in 2010. The Arizona Multiple Listing Service adopted 6 Green rating systems and 18 searchable green features as of August 2009.* I am personally planning to track the data collected. Realtors across the country- I’m challenging you to collect data in your area and share too the ReGreen Council will collect info!
Green homes will appraise for more if homeowners, Realtors, builders, and lenders make it their business and a top priority to educate appraisers. As the US Green Building Council (USGBC) Arizona Residential Green Building Advocate, I constantly hear about a complete disconnect between the value of a green home and the lack of the appraiser’s education. My committee is preparing to educate entire appraisal management companies so that no matter which appraiser is picked for the blind-draw they will be educated on the value and savings in green building. Gone will be the days of complete cost-analysis (paired sales analysis) valuations. Gotta walk before you can run!
As a Realtor, I have been leery of communication with appraisers after so much fraudulent activity in the past. Homeowners, Realtors, and anyone involved with the green building/remodeling can communicate directly with the appraiser, according to appraiser and speaker at GreenBuild Residential Summit’s Sandra Adromatis. Both she and speaker Dave Porter strongly encouraged sellers to prepare a detailed package for appraisers and contact them.
Things to Include in your Appraisal Package:
1. Facts. Use facts in your package and appraisers can’t argue. Use data from the MLS, Public Record, RESNET, USGBC, etc.;
2. Plans and specs;
3. HERS Score and inspection documents;
4. Create a chart comparing your green construction features versus a code built home;
5. Cost breakdown;
6. Incentives used;
7. Describe payback periods. For example, energy package cost versus the annual savings;
8. Include studies and surveys from similar climates.
Don’t forget to educate your lender. In a room of around 100 people, I was one of the two people that have ever been offered an Energy Efficient Mortgage. If your lender does not know about them, ask them to learn or get a referral to another lender that will take the time to explain all of your green finance options.
For instance, my family is currently purchasing a larger home for a larger family. We will finance an 8 kw photovoltaic (PV) solar system and energy efficient SEER 16 dual speed HVAC unit into our 30 year conventional (or FHA) loan. It will cover about 1/2 of the energy needs for a 3,000 sq. ft. home. We will get tax credits and incentives within the year and probably never pay the full 30 years of the loan (we will move after 5-10 yrs.), but the systems are expected to pay for themselves around year 8 or 9.
As one of my favorite professors would be quick to point out- do not neglect the “util’s of joy” gained by doing good for future generations, Steven Happel, inspiring ASU Economics Professor and Author.
Source: Adomatis, S., Medina, A. and Porter, D., Valuation of a Green Home. 8:30 am to 10:00 am (2010, November 18). Chicago GreenBuild Conference and Expo: Residential Summit.
“You must be the change you wish to see in the world.” – Ghandi
–
Melisa Camp, M.Ed.
CEO, Go Green Investments, Realtor ®, GREEN;
LEED Green Associate
Residential Green Building Advocate for USGBC AZ
HomeSmart
3131 E. Camelback Rd., Ste. 125
Phoenix, AZ 85016
c: 480.703.3202
GoGreenInvestmentsLLC.com
GreenPhoenixProperty.com
Greenqueen.FeaturedBlog.com
Know someone looking to buy, sell, or invest anywhere in the world? I’d love to help and share what I know. Referrals always welcome!
Comments (2)Subscribe to CommentsComment