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any data for green appraisals?

Last Post 30 Jan 2009 06:07 PM by 183eej. 3 Replies.

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Rsipgeo

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Posts:104

27 Jan 2009 11:44 AM
Built a 4 unit condo building with geothermal heat pumps and SIPs. Saves lots of energy etc. Now we are trying to refinance our mortgage. We sold two of the units and my sense is that they sold faster than other comparable properties, rightly so. We tried to keep the price reasonable. However, the appraisers tell me that there is no data for the value of green building. This is kind of a problem for green builders. If you spend $1200/year less on energy in a green building then isn't the value of that building greater? Is there any data I can give to an appraiser that shows an inherent value of a green building?

Bruce Frey User is Offline

Basic Member

Posts:429

28 Jan 2009 11:53 AM
Your logic is sound. This is an issue that developers have been struggling with for years with buidings that are more efficient than the rest of the market. Based on historical energy consumption, we have been successful in getting higher rents for our office buildings. Higher rents mean higher valuation. You do need to be able to back up your claims with facts and figures. Unfortuanately, most appraisers understand only "comps" and cashflow. It is a hard sell, but one that should become easier as everyone's agenda becomes greener. Bruce

Rsipgeo

Basic Member

Posts:104

28 Jan 2009 01:57 PM
Maybe the USGBC should take this on. USGBC? Appraisers commonly subtract "cost to fix" in an appraisal. It seems like if you have documented energy savings you should be able to account for that. For instance, I have an energy monitoring system that measures power in, outside temps and inside temps, as well as my geo-loop temperatures. Price/sf to heat and cool should be noted. appraisers do what other appraisers do. Not much incentive to change.

183eej

Basic Member

Posts:127

30 Jan 2009 06:07 PM
Posted By Rsipgeo on 01/27/2009 11:44 AM Built a 4 unit condo building with geothermal heat pumps and SIPs. Saves lots of energy etc. Now we are trying to refinance our mortgage. We sold two of the units and my sense is that they sold faster than other comparable properties, rightly so. We tried to keep the price reasonable. However, the appraisers tell me that there is no data for the value of green building. This is kind of a problem for green builders. If you spend $1200/year less on energy in a green building then isn't the value of that building greater? Is there any data I can give to an appraiser that shows an inherent value of a green building? The Appraisal Institute indicates that for every $1 in operating costs saved per year, the value of a home increases by $20. Most people I have talked to see this being on the high side. A local real estate agent indicated the other day that the multiple listing service had added green features to it's database a month or so ago. It'll take awhile for the data to trickle through and see what the comps look like so, it will take some time to build up the database. Other than the Appraisal Institute information, I'm not aware of anything else at the moment to support your contention. But it's coming.

Dale Walker<br>EarthTap<br>www.earthtapenergy.com<br>Where the sun never sets on energy savings<br>