12A — April 10 - 23, 2015 — M id A tlantic
Real Estate Journal
www.marejournal.com
A ppraisal
aluation professionals, real estate agents and homebuyers face chal- By Sandra Adomatis, SRA, LEED Lack of data complicates valuation of Green Homes: The Appraisal Journal V
academic publication of the Appraisal Institute , the nation’s largest professional association of real estate appraisers. The materials presented in the publication represent the opinions and views of the authors and not necessarily those of the Ap- praisal Institute. “The Challenges of Valuing Green,” by Sandra Ado- matis, SRA, LEED Green Associate, discusses the lack of consistency in sales data on high-performance homes, citing an inadequate system of keeping and sharing the necessary data to determine
their value. When applied to homes, green takes on a variety of meanings, and this creates difficulty in the marketplace, leading many valuation professionals to compare “apples and oranges” when valuing a home that has been classified as green. The author reminds valu- ation professionals to con- sider the costs of building a structure rated the “darkest” shade of green as compared to a structure with a “lighter” shade rating. Marshall & Swift/Boeckh’s 2013 Residen- tial Cost Handbook reports that the additional cost to
build green instead of code ranges from 3% to 20%. This range is wide because the shade of green is a deter- mining factor. If a structure costs more to build, the seller usually expects to sell it at a higher price. The author advocates edu- cating market participants and real estate agents on the value of green features, as well as instituting uniform standards for tracking and storing data on green homes to solve the challenges fac- ing those who sell, buy and provide opinions of value for high-performance homes.
Adomatis is a practicing real property appraiser and consultant at Adomatis Ap- praisal Service in Punta Gorda, Florida, where she is involved in a variety of residential and small com- mercial property apprais- als. She is a state-certified general appraiser and has been an active Designated member of the Appraisal In- stitute since 1985. She earned her LEED Green Associate credential from the Green Building Certification Insti- tute in 2013. She has edited and contributed to Appraisal Institute books, courses and seminars, and has published three previous articles in The Appraisal Journal about high-performance properties. Adomatis received the Ap- praisal Institute’s President’s Award in 2013, and in 2012 she received the Dr. William N. Kinnard, Jr. Award from the Appraisal Institute Edu- cation Trust. The Appraisal Institute is a global professional associa- tion of real estate appraisers, with nearly 21,000 profes- sionals in almost 60 countries throughout the world. Its mission is to advance profes- sionalism and ethics, global standards, methodologies, and practices through the professional development of property economics world- wide. n a section of the MARE Journal P.O. Box 26, Accord, MA 02018 781-871-5298 • 800-584-1062 fax 781-871-5299 www.marejournal.com Publisher/CEO Linda Christman lchristman@marejournal.com Section Publisher Steve Kelley Skelley@marejournal.com Section Editor Karen Vachon editor@marejournal.com Financial Digest
l e n g e s i n the process of valuing, selling and purchasing green and energy-effi- cient homes due to a lack of compara-
Sandra Adomatis
ble properties and a lack of data, according to an article published this week in The Appraisal Journal. The Appraisal Journal is the quarterly technical and
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