Energy Efficient Items

[Terrel L. Shields]

Special energy-saving items must be recognized in the appraisal process and noted on the appraisal report form. For example, when completing the appraisal report (Form 1004), special energy-efficient items are to be addressed in the Improvements section in the Additional features field. The nature of these items and their contribution to value will vary throughout the country because of climactic conditions, differences in utility costs, and overall market reaction to the cost of the feature. Some examples of special energy-efficient features may include, but are not limited to, energy efficient ratings or certifications, programmable thermostats, solar photovoltaic systems, low-e windows, insulated ducts, and tank-less water heaters.​

Does anyone actually make adjustments in the 1004 grid to energy efficient items? Could you or the borrower even identify a low E rated window (mine are but no appraiser ever noted it nor did I tell them same). Marathon or tankless heaters, etc. Seems much overlooked and likely market invisible. Fannie would really go nuts for the mirrors designed to reflect winter sun onto a sidewalk and melt ice or snow quicker...

 

[Tim The Enchanter]

Does anyone actually make adjustments in the 1004 grid to energy efficient items?

Err, no.

I note the tankless water heater, the solar what not. Dual pane windows are getting to be standard, are required in new construction here. Unless they are brand new and still have the label stickers, how do I know if they are low E or high F? New roofs have to be "certified cool roof" or something like that. Can you tell how efficient an HVAC system is by looking at it? How many AC units or furnaces actually have labels you can read? Does the typical buyer go into such agonizing detail?
I don't think so. These are "features" of the property and there is once again usually no evidence to support an adjustment either + or -. Maybe if the OMV was $100k, but that is not my world, Bubba.

TLDR. That is a useless field on the form. The template answer in that field is "none".

 

[Dublin ohio]

The only item I have ever adjusted for on that line is geothermal systems. Not uncommon in the more rural areas. Mostly in ground closed loop systems. But some use relatively deep ponds. The strangest one I ever saw is one that used a well and discharged the water into a ravine that led to a river.

 

[Randolph Kinney]

Solar PV systems, yes. Solar hot water systems, no. Tankless hot water systems, no.

 

[jay trotta]

Only if it can be proved that "Energy Efficiency" can be supported (IE: tracking of savings on a year by year basis)

Basically impossible due to Utility increases over time, most savings are negated, after all, the Utility company is seeking a profit like any other business.

 

[ccpanel]

"None"

has never raised a red flag, question or comment.
It also goes along with my statement saying im not certified as an engineer, surveyor, or licensed home inspector-hire one if you want that information.

 

[Fritz in NY]

It's getting more complicated as time goes on. The only justification for $$$ adjustment in my market I can think of is market reaction.
Is it a "Good" unit, is it "Installed" correctly, should it be pointed out as a selling feature ??? We are not engineers yet, everyone want's us to be.

 

[Flakey]

Attic stairway cover, fireplace doors, automatic blinds, lights. Inspected a house where the HO had every conceivable energy saver made. Claimed the power company sent him a check every month.

 

[TRESinc]

Attic stairway cover, fireplace doors, automatic blinds, lights. Inspected a house where the HO had every conceivable energy saver made. Claimed the power company sent him a check every month.

i would have asked him for a stub.

only items i have ever adjusted for would be windows. while it's true you can't tell what brand or rating they have when inspecting comps from the street you can tell the difference between original single pane windows that have snow on the inside in winter and replacement windows, and even the lowest of them is better than the former. i've interviewed countless agents over the years and the general consensus was that buyers like/want replacement windows and will pay a premium for them.

one of the best energy savings items i personally have used is my nest thermostat. my heating bill has come down significantly since it was installed.

 

[Elliott]

Energy efficient is an oxymoron. Not using energy is the only way of achieving efficiency beyond what is the normal use of energy for heating, lighting, etc. Put down that cell phone.