The nation’s largest professional association of real estate appraisers has released an updated research tool to assist appraisers and users of appraisal services in understanding market reactions to green and energy efficient homes.
In updating the seven-page Residential Green and Energy Efficient Addendum, the Appraisal Institute intends to position appraisers to analyze data more efficiently and to report the analysis in a format that is more readable and consistent with mortgage industry information standards.
The group originally issued the addendum in 2011 as an optional addendum to commonly used appraisal forms for loans sold and guaranteed by government-sponsored enterprises and government agencies. The form was most recently updated in March 2013.
“The objective of this addendum is to standardize the communication of the high performance features of residential properties,” said Appraisal Institute president Jim Amorin. “The Appraisal Institute encourages builders, contractors, homeowners and third-party verifiers to complete the addendum and present it to appraisers, real estate agents and lenders.”
The addendum has been updated to address continued industry developments, including solar systems and helps appraisers meet standards requirements for identifying property characteristics that are relevant to that property type and value.
“The addendum can be attached to the MLS listing to provide sufficient detail on sales and listings to assist buyers, appraisers and real estate agents in understanding the high-performance features of the property,” Amorin said. “It also can be shared with the lender at the time of the loan application to assist them in understanding the property type. The lender may engage an appraiser with sufficient knowledge of the property type to provide an appraisal to meet secondary mortgage market guidelines.”
