Through a new partnership with the Appraisal Institute, Home Innovation Research Labs is helping builders translate the value of NGBS Green Certification to residential appraisals.
Home Innovation recently entered into an agreement with the Appraisal Institute to license the “Residential Green and Energy Efficient Addendum.” The Addendum was developed by appraisers as a tool to help ensure home appraisals reflect the intrinsic value of third-party certification and high-performance green and/or energy-efficient features. It can be completed by a home’s builder, remodeler, verifier/rater, appraiser, or anyone else connected to the property to document relevant information about what makes the property more valuable than a comparable code-built home. NGBS Green Certification is one of two national programs specifically recognized on the Addendum, highlighting the certification level achieved, as well as other green features, completed energy audits, and/or local energy incentives available to homeowners.
Beginning this month, builders in the NGBS Green Certification program will receive a partially-completed version of the Addendum for every certified single-family home. Builders will be encouraged to add additional information about the home’s features and provide the Addendum to the appraiser assigned to the home (or the homeowners for use at resale, in the case of remodeling projects).
“Too often, green home features and the reduced operating costs associated with those investments are not recognized and valued during the home appraisal process,” said Michael Luzier, Home Innovation President and CEO. “This licensing partnership will bring added value to all our NGBS Green Partners — marketing value to the builders who have invested in green practices and third-party verified performance standards, as well as fair market value appraisals for residents of those homes.”
For more information on the Appraisal Addendum and other resources for green home appraisals, visit www.homeinnovation.com/GreenHomeAppraisals. For more information about the NGBS Green Certification program, visit www.homeinnovation.com/Green.