Do Appraisers Value Green Studies?

If I had a nickle for everyone who gleefully reported to me that every $1 of green investment yields a $20 increase in value…!

(Note that a published report of this does not seem to exist even though this famous quote lives on like an urban legend!)

While it would be easy if that exact correlation was out there – it is not.  For one, all real estate is about location. For high performance homes location also means consumer interest, building supply, climate, utility rates, etc.

Also, third-party verification programs are now available that protect the consumer and point towards quality.  More and more it’s becoming how well a home performs, based on a thorough verification process, and less about individual bells and whistles.

Today’s blog post from the Appraisal Institute includes their response to one of the most highly-touted recent studies on value for high performance homes.  While they applaud the UCLA research for correlating warmer climates to a higher premium, they are not ready to say the study’s 9% green premium is a defacto rate for value.

So, this is one more indicator that high performance homes have additional value, but any sort of factor is still elusive.  For a peek at other known studies of green premium (using differing methods and levels of rigor) check out the links on the NAR Green Resource Council website. Of note are studies in Atlanta, North Carolina, UCLA, New Jersey, and Earth Advantage.

 

 

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