Strategies to Maximize High Efficiency Appraisals for Builders

Business Management
Published

With more builders adopting green building products and practices, being able to accurately appraise higher efficiency homes is a growing need. In recent years, this has proven difficult as some energy efficiencies aren’t as visible as others — for example, opting for spray foam insulation to ensure a home has an airtight seal to prevent heating and cooling loss versus installing Energy Star-rated appliances.

This is the issue several appraisal and building industry experts delve into in the latest NAHB BizTools video Leveraging Energy Scores to Receive Higher Appraisal Values. Presenters Steve McKanna, cofounder of the Home Building Energy Efficiency Academy; Judson Willis, a green builder with Lexar Homes; Ryan Riveras, CEO of Accelerated Appraisal Management Company; and Jacob Hooper, regional director of inspectors for ICS Inspectors, aim to educate home builders on how energy scores can help them obtain higher appraisal values, sell more homes and increase their lead conversion.

In this video, the presenters explain the various methods they use to educate builders on ways to prevent green and sustainable homes from being undervalued. This includes:

  • Partnering with local and state associations and NAHB, which helps builders get the necessary education they need, as well as learn about the specific building codes legislation in their area. Such partnerships can be beneficial to builders throughout the building phase and beyond, because “when you build a better home, you typically don’t have to deal with callbacks and warranty issues,” Willis said.
  • Educating appraisers at appraisal management centers by providing training on best practices for green construction, such as transitioning to renewable energy sources or implementing water conservation measures.
  • Advising energy rating inspectors and energy rating/consulting companies on the latest lender guideline changes, as well as getting builders up to speed on available energy program incentives including tax credits and rebates for efficient home upgrades.

Check out this clip for a sneak peek of how these tools can assist builders:

Subscribers of the BizTools Video Series can watch the full video here. (Login required.) If you wish to subscribe, register here.

For more on appraisals, including valuing green homes for what they’re worth, visit nahb.org.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics

Jul 30, 2025

Homeownership Rate Hits Lowest Level Since 2019

The latest homeownership rate declined to 65% in the second quarter of 2025, marking its lowest level since late 2019, according to the Census’s Housing Vacancy Survey (HVS).

Advocacy

Jul 29, 2025

NAHB Commends Senate Banking Panel for Advancing Housing Legislation

NAHB Chairman Buddy Hughes issued the following statement after the Senate Banking Committee voted to approve the ROAD to Housing Act.

View all

Latest Economic News

Economics

Jul 30, 2025

Fed Remains on Pause Again

At the conclusion of its July meeting, the Federal Reserve’s monetary policy committee once again held the federal funds rate constant at a top rate of 4.5%. However, two members of the committee dissented from the decision (Fed Board Governors Waller and Bowman), the largest number of dissenting votes since 1993.

Economics

Jul 30, 2025

Market Flip: Existing Homes Outprice New Homes

In the second quarter of 2025, the median price for a new single-family home was $410,800, which was $18,600 lower than the median price of existing homes, which stood at $429,400.

Economics

Jul 29, 2025

Construction Job Openings Relatively Unchanged in June

The count of open, unfilled positions in the construction industry held steady amid a slowdown for housing, per the June Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).