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PO Box 490, St. Albans Bay, VT  05481

Phone: 802.876.6200



How do I Document the High-Performance Features for Appraisal?

07/01/2019 1:26 PM | Anonymous

The best advice to a borrower or someone seeking a value of a high-performance property is to provide all the information necessary to allow the appraiser to understand what is behind the walls and what makes the house high-performance.Sandra K. Adomatis, SRA, LEED Green Associate

First and foremost, the information to provided should include a completed Appraisal Institute Residential Green and Energy Efficient Addendum (all homes, new, and existing).

The objective of this Addendum is to standardize the communication of the high-performing features of residential properties. Identifying the features not found on the [Uniform Residential Appraisal Report -URAR] 1004 form provides a basis for comparable selection and analysis of the features. Builders, contractors, homeowners, and third party verifiers are encouraged to complete this Addendum and present to appraisers, agents, lenders, and homeowners.

Attached to the Residential Green and Energy Efficient Addendum include:

  • A full Home Energy Rating System (HERS) report labeled either “Proposed”-from-plans or “Official” when construction is complete (new homes)

The HERS Index Score is an ideal tool for appraisal use and of particularly high value is the calculation of the home’s annual energy savings as compared to a minimum code-built home. That net present value of the energy savings may support adjustments to the Sales Comparison Method of appraisal by enabling use of the Income Capitalization Method of appraisal.

  • Vermont Home Energy Profile and DOE Home Energy Score (existing homes)
  • Certifications from any energy efficiency organizations or green building programs

When applicable (generally with new homes) indicate either “Proposed”-from-plans or “Official” if construction is complete)

  • Copy of VT Residential Building Energy Standards (RBES) Compliance Certificate (all homes)

Either “Proposed”-from-plans or “Official” if completed

  • Building plans and specifications (all homes - when available)
  • Renewable energy specifics and energy production records (when applicable)

When applicable, use PV Value a U.S. DOE Sandia National Lab developed online photovoltaic (PV) system production and value calculation tool

  • Incremental cost of construction data for energy efficiency and green features in the home

Cost Data Addendum for High Performance Homes is a good tool, useful for collecting and sharing data with an appraiser (all homes)

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