New Appraisal Guidelines

New Appraisal Guidelines

Appraisal Institute Releases Enhanced Form to Help Appraisers Analyze Green Home Features

Earlier this month, the Appraisal Institute released an updated form intended to help analyze values of green and energy-efficient home features. To access the addendum and additional information, visit their website.

The Appraisal Institute originally issued its Residential Green and Energy Efficient Addendum in September 2011, as an optional addendum to Fannie Mae Form 1004, the most widely used form for mortgage lending purposes. The updated five-page green addendum now 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 the appraisal report, or it is included in a lengthy narrative that often is ignored. The updated addendum reflects input from the U.S. Green Building Council and the National Association of Home Builders.