Green Home Appraising
Preston Hartwig of Red River Group has submitted a great article to the Canadian Property Valuation Magazine on home appraisals incorporating energy efficient upgrades entitled Green Home Appraising (p.26). Preston was the appraiser that worked with our member Evan Proven in providing a market appraisal for his home on Ashburn St. Using the SEEFAR© analysis provided by SRP Canada, Preston was able to give the home a higher valuation based on the lifecycle cost data in the analysis.
Working with the Real Estate Association is the next step to overcoming the marketing hurdles associated with energy efficient buildings. As more of these types of homes come onto the market the Realtors will need to find ways to set them apart from conventional homes. Realtors need to know that although these homes have a higher upfront cost to purchase, they typically have a much lower cost of ownership. Potential homebuyers will qualify for a "bump up" in the total amount they can borrow if they choose to purchase an energy efficient home because the lender has the appraisal and SEEFAR© analysis to show the value and projected energy savings over the mortgage period. There needs to be a way to show potential buyers that these higher priced homes come with considerable savings and should not be immediately discarded because they are out of your price range.
Added: Tue August 28th 2018