Page 5

“Green

appraisals allow us to spell out, in dollar form, the value of energy enhancements in our EarthCraft homes,” said Mark Waring, Vice President of Bain-Waring Builders in Richmond, VA, “and we’ve never had a home come in under the appraised price. Having a green addendum provides both the seller and the buyer peace of mind in knowing the investments into energy efficiency and sustainability are reflected in the value of the home.”

In the last issue of the The Housing Interpreter, EarthCraft Virginia

introduced you to a niche of the real estate market that is “green and growing,” reporting that over 33% of all new homes sold in 2014 were rated by a Home Energy Rater and issued a Home Energy Rating (HERS) Index Score. Results from a Harris Interactive Poll also showed 49% of homebuyers considered “eco-friendly” features more important than luxury items in a home and that buyers are paying 10 - 14% more for houses showing “green” certifications. Knowing that consumer awareness and interest is on the rise, how do Realtors builders and homeowners alike ensure their home energy improvements are fairly reflected in the marketplace? Meet the “Residential Green and Energy Efficient Addendum,” which despite being released by the Appraisal Institute in 2011, is still a fairly underutilized tool in the Virginia appraisal market. The Residential Green and Energy Efficient Addendum, developed by appraisers to support their efforts in analyzing residential “green” features and properties, supplements the standard home appraisal form used to verify the value of a home. Since high performance homes have additional value that is not always evident to appraisers, the completed addendum becomes a useful tool that allows realtors, builders, and homeowners to more effectively communicate green or energy efficient features such as third party certifications, insulation type, window specs, appliances, mechanicals, building tightness and more. Sellers have the right to request an accredited green appraiser who is educated in identifying these features and accurately valuing properties. In 2013, the Residential Energy Services Network (RESNET) entered into an agreement with the Appraisal Institute which allows RESNET accredited Home Energy Rating Software Programs to generate the addendum by auto-populating the data collected in the home energy rating. With a focus on high performance and sustainability, every EarthCraft certified home receives a HERS Index Score and is able to easily generate this report. The third-party quality assurance provided with EarthCraft certification allows the buyer to better understand home upgrades and anticipated energy use. (Continued on Page 6)

Profile for Richmond Association of REALTORS®

The Housing Interpreter September 2015  

Breaking Ground, Cutting Ribbons & Blazing Trails—From Mixed-Use Revitalization Efforts, to New Tourist Attractions and Startup Companies, R...

The Housing Interpreter September 2015  

Breaking Ground, Cutting Ribbons & Blazing Trails—From Mixed-Use Revitalization Efforts, to New Tourist Attractions and Startup Companies, R...