Real Estate Appraisers with green building expertise analyze and prepare reports on a property's value, inspecting and documenting the condition and type of building assemblies and systems and take into account the market value of energy efficient and high-performance features.
Real Estate Appraisers typically value one property at a time and they often specialize in a certain type of real estate, for example: Commercial Appraisers specialize in income-producing properties, such as office buildings, stores, and hotels while Residential Appraisers focus on properties where people live, such as single family homes and 1 to 4-unit multifamily properties.
Green buildings and energy efficiency design and operations have moved into the mainstream real estate industry. Real Estate Appraisers with green building expertise differentiate themselves by understanding how to value energy efficiency and adjacent high-performance characteristics when they conduct appraisals.
When determining a property's value, Real Estate Appraisers note the property's location, exterior condition including its foundation and roof, and interior condition including any renovations that may have been completed. Real Estate Appraisers with green building expertise go a step further and consider the features of a building that will enhance or detract from its efficient use of energy. Features such as energy efficient windows, building insulation, and high-performance heating and cooling systems would be considered when determining a property's value. After visiting a property, a Real Estate Appraiser analyzes the property relative to comparable home sales, including lease records, location, view, previous appraisals, and income potential. During the entire process, appraisers record their research, observations, and methods used in providing an estimate of the property’s value. The Appraisal Foundation recently released Valuation Advisory #9: Valuation of Green and High-Performance Property: Commercial, Multifamily, and Institutional Properties. This advisory reflects the increasing importance of green asset valuation to commercial real estate leaders and addresses specific issues related to high-performance properties. The intent is to identify the actions, skills, and knowledge necessary to help Appraisers competently value buildings with green or high-performance attributes.