For years homes built or retrofitted with energy efficient upgrades did not include the value of those features in a residential home appraisal. The National Association of Home Builders (NAHB) has just introduced a three page addendum to include the additional value of the energy efficient features of a property.
With appraisers now able to use a standardized form to include the values of energy efficient features it will become much easier to track the percentage of increased value. It has been estimated that a home with energy efficient upgrades appraises approximately 8% more than a similar home without upgrades. Homeowners who have made investments in energy-efficient upgrades reap the daily benefits of these improvements with lower utility bills and healthier lives due to better indoor air quality and now, finally, homeowners will begin to realize a higher return on their investment when they are ready to sell.
As this is such a new form, if you are in the process of buying or selling a residential property, be certain to ask for the Lender or real estate appraiser to include the new Residential Green and Energy Efficient Addendum in the appraisal. This form is available to the public and can be printed to provide a copy to the appraiser or Lender if he/she is unaware of the addendum.
Not only does the new addendum address features such as insulation, windows, HVAC (heating and air conditioning), solar panels and appliances, it also includes energy audits, HERS energy ratings, utility bills, site orientation, third-party certifications, landscaping, cisterns and rain barrels. If you would like to read the complete NAHB article about the addition of this new addendum click here.
An equally important item, if you are planning to buy or sell a home with sustainable features, is to determine if your local Multiple Listing Service has energy-efficient features available in its’ database. Ask a local REALTOR® if the MLS database includes those features. If not, talk to every REALTOR® you know and encourage them to insist green data fields are added to the MLS.
Another option is to list your home with a REALTOR® in an area where sustainable features are included in the Multiple Listing Service. In Florida, as in many other States, once a property is listed in a regional MLS it is searchable through the Statewide MLS system and available to anyone.
Instrumental in adding green data fields to the St. Augustine and St. Johns County Multiple Listing Service (MLS), I am qualified to help Buyers find their energy-efficient home or market your sustainable home to ensure your home’s energy features are included in the value. Click here to contact me.