Appraisal Institute Releases Enhanced ‘Green’ Addendum
The Appraisal Institute released on March 7 an updated version of its Residential Green and Energy Efficient Addendum. The form is designed to assist in the valuation of energy-efficient home features, and it remains the first of its kind specifically intended for appraisers' use.
AI originally issued its green addendum in September 2011 as an optional form to Fannie Mae Form 1004, which is the valuation profession’s most widely used form for mortgage lending purposes.
The addendum allows appraisers to identify and describe a home’s green features, from solar panels to energy-saving appliances. Form 1004 devotes limited attention to energy-efficient features, so green data usually doesn’t appear in appraisal reports or is included in a lengthy narrative that often is ignored.
Updates to the addendum include new fields for energy categories and revisions to the way solar photovoltaic energy features are noted so as to make the category more relevant to the market. The form also includes references to aid appraisers in completing the solar section and a helpful glossary.
AI sought input from the U.S. Green Building Council and the National Association of Home Builders in making its updates.
View the updated Residential Green and Energy Efficient Addendum.