Value of Green Homes

Value of green homes often lost on appraisers

April 15, 2011 - Green is finally catching on in homebuilding. Practically every manufacturer, whether they make faucets or light fixtures, incorporates some shade of green into its designs. Even builders have gotten the message that buyers want environmentally sensitive homes and may be willing to pay for them.

Unfortunately, the lending community in general — and appraisers, specifically — remain far behind the times when it comes to green construction. Most lenders don't offer mortgages that take into account the money buyers are likely to save on their utility bills, and most appraisers won't give full value for the extra cost or the potential savings.

So-called energy-efficient mortgages have been around for years and have the backing of every federal housing agency. But don't waste your time trying to find one, said Dave Porter, of Porterworks, a Stanwood, Wash., consulting firm focusing on sustainability.

Porter, who once worked for Countrywide Home Loans, said energy-efficient mortgages have not been viable because lenders, real estate agents and builders are not aware of them. Worse, he said, the general perception among those who do know about them is that the process is too cumbersome to make them worthwhile. {continued}