From the desk
of the president
By Joseph C.
BY NOW I HOPE YOU’VE HEARD that the
Appraisal Institute has released a form intended
to help analyze features and values of energy-efficient homes. It is the first of its kind intended
for appraisers’ use.
The new Residential Green and Energy
Efficient Addendum is another example of how
the Appraisal Institute is the industry leader
in green valuation. AI issued the form as an
optional addendum to Fannie Mae Form 1004, the
appraisal industry’s most widely used form for
mortgage lending purposes.
Currently, the contributory value of
a home’s green features is rarely part
of the equation. This addendum will
help the industry standardize the way
residential energy-efficient features are
analyzed and reported.
The Appraisal Institute’s new form
allows appraisers to identify and
describe a home’s green features, from
06 VALUATION FOURTHQUARTER 2011
AI’s new ‘green’ addendum leads
the valuation profession
solar panels to energy-saving appliances. Form
1004 devotes limited attention to energy efficient
features, so green data usually doesn’t appear in
the appraisal report, or it is included in a lengthy
narrative that often is ignored.
The addendum also will make it easier for
appraisers to determine whether recent home
sales should be used as comparable sales.
The Appraisal Institute hopes that lenders, home
builders, real estate agents and homeowners will take
advantage of this new tool. Mortgage lenders who
want to see energy features analyzed should request
the green addendum to be included with Form 1004.
AI also encourages lenders to provide the green
addendum to homeowners so they can fill it out and
provide it to their appraiser. If a new home is being
appraised, home builders can use the addendum to
provide data to appraisers. Real estate agents also
can use the data to help populate the MLS.
The Appraisal Institute long has been at the industry’s forefront as a leader in green valuation, and it has
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