Posts Tagged ‘education’

Appraisal Foundation and U.S. Dept. of Energy to collaborate on Green Valuation

Thursday, June 16th, 2011

The work SEEC has undertaken in the Pacific Northwest over the last couple of years to highlight the interrelatedness of valuation and green building in the residential sector is now starting to be undertaken at the national level.  In the Appraisal Foundation’s Press Release of June 13th, 2011 the importance of energy efficiency was recognized as “gaining traction throughout the marketplace”.  The MOU signed between the two organizations relates specifically to commercial buildings though.  This is not surprising since this is where the big $$$s are concentrated.  Also, the sometimes significant savings on energy consumption associated with green buildings can be realized by commercial building owners and can be used by the appraisal industry to create added value using the income approach – already the weighted approach in commercial appraisals. 

The struggle is in the residential sector where the income approach for energy savings may be used to justify an adjustment, but only as long as it can be supported by the primary approach -  the market or sales comparison approach.