Why do most lenders not recognize "Green" price adjustments on Energy Efficient / Green Homes by Appraisers ?

By
Real Estate Broker Owner with Ed Nikles Custom Builder , Inc. / Nikles Realty , Inc. PA Broker-RM060117A

Some Lenders pretend to offer "Energy Efficient" Mortgages with expanded ratios for Energy Star & Green Homes ! However , these same lenders will not recognize the "Green" adjustments made by Appraisers vs. non-green & non-energy star homes ! It costs more to build Energy Star & Green ! The benefits are documented by HERS Raters & Green Verifiers and utility cost savings can be calculated by computer programs ! Yet another Green Paradox - we want you to build Green , but it just won't Appraise ! Wake up people ! There are very few Energy Star & Green comparables sold as Resales ! If we can't appraise the ones we build , then how are we supposed to build more ? Is Green only for the wealthy or high downpayment clients ? I hope not ! I'm looking for ideas - What do you think ? Keepin' it Green !

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  1. Isaac E. Chavez 03/01/2009 04:34 PM
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Location:
Pennsylvania Pike County Milford
Groups:
All About Mortgages/Mortgage Networking
ECO-ALL-STARS & "BOOMERS"
Green housing panel
Mortgages
PA Construction
Tags:
green building
energy star
mortgages
new homes

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Anonymous
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Rainer
46,331
Michelle Viggiano
healthyhomeaz
Four Winds Healthy Home Carpet & Air Duct Cleaning

Ed, I would like to clarify, I don't  mean the building's energy output, I am mainly talking about sustainable products and other green components of buildings, exterior and interior.

March 01, 2009 09:54 PM
Rainer
191,151
Edward D. Nikles
Ed Nikles Custom Builder , Inc. / Nikles Realty , Inc.

Michelle , thanks for the input ! It is extremely frustrating that the public wants to build Green & the Obama Administration talks about Green , but no one is doing anything about Green when it comes to Lending & Appraising ! Keepin' it Green !

March 02, 2009 08:58 AM
Rainer
46,331
Michelle Viggiano
healthyhomeaz
Four Winds Healthy Home Carpet & Air Duct Cleaning

Yes Ed, it's frustrating, quarried products always appraise higher regardless of their initial cost and level of quality. Reclaimed materials, even if they are in a luxury category, like encaustics seem to always appraise in most circles like ceramic, still below quarried, etc. and the list goes on and on.  

March 02, 2009 09:28 AM
Rainmaker
182,646
R.E. Renée (Renee) Hoover, Realtor
Poconos, Pike, Wayne, Monroe Co
Century 21 Geba Realty, Milford, PA

Ed, good post.  Wish some of the members on AR in the mortgage industry would add their insights regarding this.  Perhaps email a few, and invite them in for some of their expertise?

March 04, 2009 11:45 AM
Rainmaker
182,646
R.E. Renée (Renee) Hoover, Realtor
Poconos, Pike, Wayne, Monroe Co
Century 21 Geba Realty, Milford, PA

Seems like "keepin it green" is catching on - had a contact today.  There has to be a way to be proactive on this issue!

March 08, 2009 10:42 PM
Anonymous
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Rainer
191,151

Edward D. Nikles

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