Townsend Appraisal Commentary

EcoHome's Rick Schwolsky is his own case study on the frustrations of trying to get appraisers to add value for energy-saving features homeowners and home builders put in their houses.

Special energy-saving items should be recognized in the appraisal process. The appraiser should compare the energy-efficient features of the subject property to those of the comparable properties in the ‘sales comparison analysis’ grid to ensure that the overall contribution of these items is reflected in the market value of the subject property. (Source: Fannie Mae 2011 Selling Guide)

Schwolsky wrotes, "It’s been years since I had a good argument with an appraiser. So when I found myself engaged yet again a few weeks ago, making the case for my new 4.2-kW PV system, it felt frustratingly familiar. I’ve been arguing the value equation of energy improvements with appraisers since back in the 70s, when I was building super-insulated, passive solar, PV-powered homes that passed comfortably through Vermont winters on the BTUs generated by a large dog."

It was futile then, and apparently not much has changed. But then again, how can builders expect to win an argument against appraisers who see our world through a checklist, let alone a checklist and valuation system that hasn’t kept pace with our own progress as a value-oriented industry?

To read the FULL article, click here: Source: EcoHome