The Institute for Market Transformation (IMT) and the Appraisal Institute have released an updated an appraiser’s guide to factoring energy performance into real estate valuation. The guide is titled, Recognition of Energy Costs and Energy Performance in Real Property Valuation. The organizations point out that demand for green and energy-efficient buildings has risen noticeably. As such, today’s appraisers need to be well-informed concerning the effects energy efficiency has on property value. Studies have found that buildings rated as energy efficient are strong financial performers: many have higher occupancy rates, command higher rents, and sell for more money than similar less-efficient properties. But the value add has been hard to track and easy to overlook. Energy efficiency is invisible, and its benefits-such as lower utility bills and higher net operating income-often reveal themselves gradually over time. IMT and the Appraisal Institute’s report’s goal is to assist appraisers analyze and account for information about buildings’ energy performance. To download the new publication click on Recognition of Energy Costs and Performance in Real Property Valuation
