NEW “GREEN” ADDENDUM FOR APPRAISALS —

Up until recently the “green” or energy efficient features that homeowners have added to their homes have not been included in the valuation of a home when it was appraised. The features have been a good selling point in getting the home sold but have not benefited the home seller in raising the value or recouping the some of the expense of these items. The Appraisal Institute has created an optional addendum to Fannie Mae Form 1004 (the most widely used appraisal form by Freddie, Fannie, and FHA) which allows features such as, energy-efficient appliances and solar panels to be analyzed and factored into an appraisal.
“We hope lenders, home builders, real estate agents, and home owners will take advantage of this new tool,” says Joseph C. Magdziarz, president of the Appraisal Institute. “Mortgage lenders who want to see energy features analyzed should request the green addendum to be included with Form 1004. We also encourage lenders to provide the green addendum to home owners so they can fill it out and provide it to their appraiser. If a new home is being appraised, home builders can use the addendum to provide data to appraisers. ”
So now you know 🙂
It’s called the AI-820.03 Residential Green and Energy Efficient Addendum and can be found here:
http://www.appraisalinstitute.org/education/green_energy_addendum.aspx