Fair appraisals are critical to ensuring homes are valued at the right price based on the location, design and features of the home. Green building features, however, can be tricky to value appropriately if the appraiser isn't adequately equipped with the proper knowledge and tools to understand these components and how they impact the value of a home.
To increase awareness of energy programs and products available to not only appraisers, but builders, realtors, lenders and home buyers as well, the Interior Alaska Builders Association (IABA)
hosted a Green Building Valuation Seminar for local professionals earlier this year
The goals of the three-day seminar were to:
- Facilitate correct valuation of energy-efficient housing,
- Equip professionals with the Appraisal Institute’s Residential Green and Energy Efficiency Addendum,
- Inform lenders of their ability to make a difference in this industry-wide issue,
- Strengthen relationships between builders, real estate agents and lenders, and
- Offer participants the opportunity to discuss the complex issues and obstacles they face every day.
Sponsorships through IABA, local lenders, builders and real-estate companies, as well as a grant from the Appraisal Institute, helped defray much of the cost to increase participation. Participants in the initial "Introduction to Green Building" segment included 16 appraisers, five local builders, six real-estate agents and eight mortgage bankers. This cross segmentation among industry professionals allowed them to share how and why they do certain things, and provide a greater understanding of the roles each has in the process.
"Real-estate agents and builders have a big responsibility because they have to provide all the information the appraiser needs and promote everything in that house that makes it green or energy efficient," observed Terry Duszynski, NAHB Senior Life Delegate and IABA Life Director, including newer technologies for which there may not be comparable homes for appraisers to utilize. "Appraisers now know what to look for, so now builders and agents need to be aggressive in providing information and making sure the appraiser includes it."
The 16 appraisers continued for another full day of case studies in green building appraisals and became certified through the event. Alaska now boasts the largest number of certified green appraisers in the United States.
"We want to partner with groups such as The Appraisal Institute, the Greater Fairbanks Board of Realtors and local lenders to bring housing education programs to our area," said Duszynski. "With funding assistance from key members of the housing community, we can make a difference in housing’s most important issues."
For more information about NAHB’s sustainable and green building programs, contact Assistant Vice President Jaclyn Toole
To stay current on high-performance building, follow NAHB’s Sustainability and Green Building team on Twitter