As reported in the Hartford Courant, (which, like ForSaleByOwner.com, is owned by Tribune Co.), there has been quite a disconnect over green improvements: Federal tax incentives encouraged homeowners to add insulation, replace doors and windows, and buy appliances and fixtures that used energy and water more judiciously. Yet, at the same time, appraisers were at a loss as to how to put a price tag on the value added to a home by these projects.
As in all such disputes, the appraisers won. That left some home sellers dismayed that they did not recoup even the after-tax value of improvements they had thought would improve the market value of their homes.
Now, just in time for cold-weather sales, the Appraisal Institute has released an addendum that appraisers can use to evaluate green features. Consumers can get a copy through the Institute.
- If you are selling, get a copy well in advance so you can rustle up the receipts and other documentation that validates the market value of your improvements.
- Have an extra copy of the green addendum on hand for the appraiser, just in case he doesn't have one.
- Format your list of green improvements on the listing sheet to mirror the Institute's addendum so it is easy for appraisers to review and check off green features.
Image courtesy of Morguefile contributor ijy.