Ensure building appraisers consider green elements of building valuations
Guidance on the Valuation of Green Buildings will be issued by the Appraisal Foundation’s Appraisal Practices Board. The first step, establishing the basic competency required of appraisers to evaluate green/energy-efficient buildings, is underway. The purpose of the document is to provide guidance to appraisers concerning the necessary background and core competency that is needed to value green, high-performance or sustainable commercial and residential buildings, as well as existing building stock that is not green yet may have green features or exist in a local market that values sustainability and/or green building. This second draft of this document, Valuation of Green Buildings: Background and Core Competency, will be available soon for public review.
The Appraisal Foundation’s second step is to develop guidelines for the valuation of green/energy-efficient residential and commercial buildings. The first draft of this document, Procedures for Appraising Green Buildings, will be available soon for public review.
As these resources are developed, we encourage you to actively promote their availability to building owners and managers, brokers, appraisers, financing partners, and other stakeholders that may be involved in assessing or promoting the value of your buildings. Contact us to be notified when the next draft is ready for review.