One of the challenges with greening residential real estate has been appropriately valuing such features in the appraisal process. According to the National Mortgage Professional, “Home builders and others have complained that appraisers often don’t properly take into account ‘green’ features when providing valuations.” Frankly, this is not just a question about solar panels. It’s a question about the more mundane, less exotic things people can do to be earth friendly, reduce their carbon footprint, and maybe reduce some energy bills too. One thing we’ve mentioned before is the Green MLS Toolkit initiative by NAR but the Appraisal Institute (AI) is providing a new green product to appraisers. AI also supports the Green MLS Toolkit.
This week AI launched the Green Valuation Program, which provides continuing education courses for appraisers on valuing green features. The program includes principles and concepts along with case studies for both residential and commercial buildings. AI works with the US Green Building Council (USGBC) and the program is approved for the LEED Credential Maintenance Program.