Appraised Value and Energy Efficiency: Getting it Right

Communications, Financial

While location, design, and price are a home buyer’s main considerations, surveys show that buyers rank energy efficiency as one of the most desirable features, and importantly when there are sufficient energy savings – they are willing to pay a premium price. However, energy efficiency can be overlooked in the appraisal process for a variety of reasons, including a lack of access to quality data, underwriting impediments, and appraiser qualifications. Many appraisers may not be aware of the unique features of an energy efficient home, and this study supports filling the gap.