4 Steps to Getting an Accurate Appraisal Value for Your High-Performance Home
Are appraisals for your newly constructed high-performance homes consistently coming in lower than your contract prices, despite being above code? How can you get appraisals to accurately reflect the additional value on a high-performance home? There's not always a simple answer, but there are several steps builders and your customers can take to educate local appraisers, lenders and the general public about what makes your durable, energy-efficient, healthier home stand out from the competition.
Unlike high-end finishes they can feel and touch, buyers and appraisers can't see what's behind the walls. The four steps below can help you highlight these hidden benefits to achieve an accurate appraisal value for your build.
Step 1: Assess and potentially change how you market your homes and their high-performance features. Consider the following tactics to make the features and systems in your build stand out:
- Advertise features that make the home more comfortable, energy efficient and water efficient, and how these aspects help to lower utility bills. Need ideas? Check out the translator tool at Home Performance Counts – an initiative between the National Association of REALTORS' and NAHB – which parses out language choices that are relatable to buyers;
- Educate the selling agent about the results of an Energy Rating Index (ERI), the Home Energy Rating System (HERS) score or Home Energy Score (HES);
- Teach your sales staff how to articulate what an ERI, HERS and/or HES rating is and what it means;
- Display the ERI, HERS or HES rating and potential expected energy savings at open houses. Include an infographic to demonstrate the anticipated energy-use breakdown (e.g., 40% space heating, 10 % space cooling, 15% water heating, etc.). Use handouts to explain how the home brings in fresh air, why specific materials were chosen to eliminate harmful sources of particulate matter, and what mold-prevention techniques were used; and
- Highlight any independently verified green home certification, such as the National Green Building Standard, prominently in your marketing materials by adding the badge to flyers and webpages, and explaining what the certification means in terms of better indoor air quality, lower toxin levels in the home, and an overall quieter and more comfortable living experience. Display and discuss the certification plaque during open houses as well.