The Appraisal Institute has launched a new course, Valuation of Sustainable Buildings Professional Development Program, to educate appraisers on the intricacies of valuing high-performance residential and commercial buildings.
“There is a tremendous need for this type of education within the real estate sector,” said Appraisal Institute President Joseph C. Magdziarz, MAI, SRA. He continued, "High-performance buildings represent a rapidly growing area of the real estate market, and reliable valuations are critical both to banks’ risk management and to developers’ sound development practices."
In the past, appraisers have been criticized for not accounting properly for a building's "green" features.. This new educational program is intended to bring graduates up to date on methods, techniques, case studies, and valuation for green improvements.
Magdziarz acknowledged that misconceptions about green valuation currently exist among many non-appraisers, including a failure to realize that cost does not always equal value. He noted that appraisers need to have all information from underwriters, builders, real estate agents, and home inspectors related to energy efficient features in order to recognize them and to make appropriate, market-based adjustments. He stated that "A critical issue is market recognition of the actual or perceived benefits of a green building. Do market participants view high-performance features as an enhancement to the market value of the property or as an over-enhancement? This is a critical question that will likely be unique to the particular property and local real estate market.”
If you want to add green features to your home and have questions on how those may affect its resale value, call or email me and let's talk about the market in your New Jersey neighborhood.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
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