This addendum was created by the Appraisal Institute for assisting appraisers in capturing data regarding green and energy efficient items in a home. It can be used for both new and existing homes, and it can be filled out by a builder, contractor, real estate agent, or homeowner. It is also assisting in “Greening the MLS”.
A home rating is not required on the home for the appraiser to use these items in his assessment. It should also be noted that an appraiser is not required to include these items in the final report, although according to a recent Appraisal Institute webinar, the homeowner can request an appraiser that is familiar with green & efficient items.
For existing homes, it’s important that this addendum be given to the homeowner after a retrofit. The homeowner can then give copies of it to a real estate agent if they decide to sell the home, and/or an appraiser if they decide to either sell the home or apply for a refinance. The Appraisal Institute advised that giving it directly to the banker is not the best option because it rarely makes it to the appraiser.
Page 1 of the addendum is usually used for new homes, or a home that has certain green certifications.
Page 2 Energy Efficient Items can be used for an existing home that has no certifications. If an energy retrofit is done on an existing home, you can give this report to the homeowner upon test out... and it’s up to you if you charge for the service.
Page 3 is all about Solar PV and it links to www.pvvalue.com which helps with proper valuation of the system.
Page 4 is partly about incentives. It is not necessary to fill this section out unless the home is being sold and the new homeowner (buyer) will benefit from the incentives.
There are very few, if any, instructions on the form. However, the Appraisal Institute recommends using the comment section at the bottom of page 2 to add your name, company, contact information and the date of the finished retrofit. Also be sure to indicate if the report is attached, or available to be attached, and add any comments that may be relevant to the items on this page.
The link provided here takes you directly to the Appraisal Institute / Residential Green and Energy Efficient Addendum. It is a form that you can fill out (simply click on the form field) and print and/or pdf for your client.
If any of the items or pages are not relevant to your retrofit, simply leave them blank.
