Much work needs to be done in order for energy efficiency to be properly weighted in home appraisals. Home appraisers are unlikely to recognize the value of energy efficiency features if they have not had appropriate training (e.g., Appraisal Institute’s Valuation of Sustainable Buildings Professional Development Program, Earth Advantage’s Accredited Green Appraiser), according to a new white paper from the U.S. Department of Energy.
Lenders or appraisal management companies typically order appraisals based on fastest turnaround and lowest appraisal cost, rather than a specific competency. Unless the homebuyer clearly indicates to their lender that they are purchasing a high performance home, a qualified appraiser will likely not be assigned. Energy efficiency programs can help ensure accurate appraisals.
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