Valuing Green-Appraisals to Include Environmental Features

Environmental features can add considerable value to a building. But in real estate, a higher perceived value often fails to translate into a higher appraised value, complicating financial transactions and limiting incentives for owners to invest in green. The Appraisal Institute (AI), the most prominent U.S. membership organization of appraisers, aims to change that; appraisers who complete an AI program covering valuation of environmental features in both residential and commercial buildings will receive a certificate in Valuation of Sustainable Buildings.

AI expects the nationwide program to increase dramatically the number of appraisers trained in estimating the dollar-value of sustainability features. According to AI board president Joe Magdziarz, “We are trying to get all of our members to take these courses.” The certificate program should also make it easier for clients to find the right appraiser for a green building, according to Magdziarz. “This is just emerging,” he said, “but it’s big.”