Homeowners and homebuilders both want to maximize the sale value of their homes. If you could obtain a higher appraised value for your own home, or those you build, would you be interested? Well for green homes you can, and it’s becoming less difficult.

Previous Green and Green articles have discussed how buyers will pay more for homes with PV systems and how green homes are better homes. So doesn’t it make sense that homes with energy-savings and green features should be valued more than conventional homes? Sure it does, but that hasn’t always been the case when it came to appraisals. However the appraisal industry is catching up with the times and has formalized how appraisers should evaluate the value premium for sustainable homes.

The Residential Green and Energy Efficient Addendum (RGEEA), available from the Appraisal Institute (AI), is a standard form that appraisers can use to document the sustainability features of a home. The form is divided into several topic areas. “Green Features” covers certifications (ICC 700 (the National Green Building Standard developed by NAHB), LEED, or other green building program) and rating scores. “Energy Efficient Items” to be noted include such things as HERS rating, energy rating (Energy Star or other), insulation, envelope tightness, window quality, and HVAC equipment efficiency. “Solar Panels” requires system specifics. Walk score, public transportation, landscaping, and house orientation details are to be provided in the “Location-Site” section.

Most of this information will not be directly observable by the appraiser, so it is critical that home sellers provide documentation that adequately describes and substantiates a home’s sustainability features. It probably would be a good idea for sellers to fill out the form themselves and then provide the completed form to the appraiser along with the necessary documentation. A list of appraisers who have completed AI’s “Valuation of Sustainable Buildings” education module is available at myappraisalinstitute.org/findappraiser/green_sustainability_residential.aspx.

Another possibility for maximizing the sales value of the green homes that you build may be for buyers to obtain an Energy Efficient Mortgage (EEM). EEMs, by allowing higher debt-to-income rations for loan underwriting, enable buyers to qualify for larger mortgage amounts. The entire alphabet of federal home-mortgage entities, FHA, VA, Fannie Mae, and Freddie Mac, offer or allow Energy Efficient Mortgages. Or at least in theory they do. But in reality finding a lender who will actually initiate a conventional EEM may be hard to do.

The website, mortgageloan.com/eem-lenders, provides a searchable list of lenders who indicate that they handle EEMs. For Arizona, besides the VA, there are only five others including SAHBA members Nova Home Loans and Sunstreet Mortgage. Nova’s website mentions FHA EEMs, but not VA or conventional EEMs. Sunstreet’s website does not seem to address EEMs.

Dante Archangeli is the owner of Tucson Artisan Builders LLC, has been a Southern Arizona Home Builders Association member since 2000, and a green builder for longer than that. He also blogs about sustainability at GoodNewsForNature.com and terrain.org/author/darchangeli/.