Energy Efficiency Weighted More in Appraisals | Realtor Magazine
Energy efficiency scores will soon be included on appraisal forms in a handful of states. Builders are applauding the change, saying that will help give more credit for energy-saving features.
A collaboration between the Residential Energy Services Network and the Appraisal Institute is bringing HERS scores—Home Energy Rating System—on appraisal forms in a few states.
The HERS Index is a numerical rating system that measures energy consumption compared to a standard house. The standard house has a score of 100. But a house that has a HERS index of 70, for example, would use 30 percent less energy. A home with a HERS index of 130, on the other hand, would consume 30 percent more energy. As such, the lower the HERS score, the lower the energy costs.
“One of the largest barriers to the building and selling of high energy performance homes is that the value of energy upgrades is too often not reflected in the real estate appraisal of a home,” RESNET Executive Director Steve Baden told the Insulation Institute. “Many of the features that make a home energy-efficient are hidden behind drywall and aren’t obvious to home buyers. Our goal is to make information, such as the HERS score of a home, visible in the appraisal so that consumers have more facts available to make their decisions.”
The HERS score will be added to an existing green-building addendum that appraisers use.