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Old 07-25-2005, 11:47 AM
Ray Miller's Avatar
Ray Miller Ray Miller is offline
Join Date: Feb 2002
Location: Southwest Wisconsin
State: Wisconsin
Professional Status: Licensed Appraiser
Posts: 12,000

I have a home owner who is having a fit, because I marked the report for insulation unknow. Instead of marking each box for the walls, celling, floor, etc, and give the R-factor for each. Said it would increase the value of her home by 15% because of the savings in heat and cooling bills.

I also cover it in my addenda that I am not a home inspector and have no knowledge of the insulation.

How do you cover you back side on this? I was always told to mark it unknown.
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Old 07-25-2005, 11:48 AM
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Bill_FL Bill_FL is offline
Join Date: Aug 2002
Location: Cliqueville
State: Florida
Professional Status: Certified General Appraiser
Posts: 4,871

Yes maam, I will be happy to come back out and verify that. What I will need to do is tear holes in your ceiling and walls so I can pull some of the insulation out to read its label.
Warning: this post not spell checked because I know what I meant to type.
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Old 07-25-2005, 11:49 AM
Tina's Avatar
Tina Tina is offline
Join Date: May 2004
State: Florida
Professional Status: Certified Residential Appraiser
Posts: 2,562

I check the "Unknown" box (unless it's plans & specs where the values are indicated) and then under that I insert "assume to code"

Old 07-25-2005, 11:51 AM
Oregon Doug Oregon Doug is offline
Join Date: Jan 2002
Location: Westcentral Oregon
State: Oregon
Professional Status: General Public
Posts: 1,963

Ask the home owner if you can borrow his hammer so's you can beat a few holes in the walls to see what the insulation is.

Oregon Doug
Life's short, play dirty.
Old 07-25-2005, 11:55 AM
tommcsherry tommcsherry is offline
Join Date: Mar 2004
Location: N38 57.536' W123 6.620'
State: Nevada
Professional Status: Certified Residential Appraiser
Posts: 1,681

What's so special about the HO's insulation, that they're so proud of it? I would think, in your neck of the woods, most houses ARE insulated...are we going to start quantifying the energy savings from each type of insulation now?

IMHO, you covered your rear by marking it unknown and by stating that this was not a home inspection. Just tell her there is no market evidence that (if there isn't) insulation impacts the value of a house and let it go at that.

I can't see it making a 15% difference anyway unless this were some high profile, superinsulated, energy efficient, alternative energy home...and even there, the value would be in the total energy package rather than just the insulation.

Shoot that horse, it's lame.
Old 07-25-2005, 12:20 PM
Otis Key's Avatar
Otis Key Otis Key is offline
Join Date: May 2004
Location: Mile High
State: New Mexico
Professional Status: Certified Residential Appraiser
Posts: 15,970

Said it would increase the value of her home by 15% because of the savings in heat and cooling bills.
First, Mr/Ms HO, show me your appraiser's license so that I can know that I'm dealing with someone who is qualified to appraise in this state. Next, show me the proof of such an increase that is accepted and recognized in this market. Next, pay me in advance for this reconsideration. Lastly, move over because the bulldozer is coming in so that I can make sure I get a good sampling of the insulation and verify that it's installed in the "ENTIRE" house!

Oh - to answer your question. I always, unless plans & specs, put "UNK" and mark the UNKNOWN box. I think put in the comment section "Assumed to code".
Old 07-25-2005, 12:22 PM
Ted Martin Ted Martin is offline
Join Date: Jan 2002
Location: Topeka, KS, USA
State: Kansas
Professional Status: Certified General Appraiser
Posts: 1,826

Was the home insulated when she bought it or did she add insulation. If it was insulated how much of premium did she pay versus the other uninsulated homes?

Actually this will probably become more of an issue as utility bills go up. Back in the mid 1970's when we really had a national energy policy lenders would give there was an Fannie or Freddie energy form where the saving from "extrodinary" energy saving features were calculated and the savings were used to qualify the borrower for a larger loan. The regulations and forms are still on the books but I can't think of a single lender in my part of the world that knows how to do one of these loans.
Old 07-25-2005, 12:35 PM
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nauthead nauthead is offline
Join Date: Nov 2004
Location: Stink Key, FL
State: Florida
Professional Status: Certified General Appraiser
Posts: 1,544

"The attic portion of the home was not viewed unless otherwise noted, nor was an "R" factor for insulation determined by the appraiser. "

"Although due diligence was exercised while at the subject property, the appraiser is NOT an expert in such matters as pest control, structural engineering, hazardous waste, or construction etc. and no warranty is given or implied as to these or other outside of analysis of market data. Inspections by various professionals within these fields may be recommended with the final value estimate of market value subject to their findings. "

These comments go in every report of mine, under scope of work.
If you were supposed to watch your mouth all the time I doubt your eyes would be above it.
Old 07-25-2005, 12:50 PM
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Smokey Bear Smokey Bear is offline
Join Date: Dec 2004
Location: The "OC" in Republican Land (Oh no!)
State: California
Professional Status: Certified Residential Appraiser
Posts: 12,470

Nothing "adds value" to a house by itself. It only adds value if a) it's something the comps don't have, and B) if it's something someone is willing to pay for. I love it when homeowners think that some feature of their house should add value to the appraisal, when I've got 5 comps with the same feature.
For God's sake, if you need to take legal action, GET A LAWYER. I'm not giving legal advice.
Old 07-25-2005, 09:28 PM
Restrain Restrain is offline
Join Date: Jan 2002
Location: Port Charlotte, FL
State: Florida
Professional Status: Certified General Appraiser
Posts: 10,550

I put "assumed adequate". So many newer homes are "Energy Star" or equivalent so it's immaterial. The only homes that I've seen it make a difference with are the super-efficient homes, such as the ones made from insulated panels, eetc.
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