Appraise This: How Much For A Hobbit House?
How would real estate appraisers tackle this one? They're going to need to learn. It's already starting on the commercial side. For example, the Appraisal Institute just offered a seminar for appraisers titled An Introduction to Valuing Green Buildings. Attendees learned "how buildings held for investment relate to the larger green building universe. The analysis and valuation of green building for investment purposes are also examined."
In a collapsing housing market, are green-smart appraisers going to help buoy the values of well designed properties? With energy prices going way up, you bet they are.
Caveat: if the definition of "green" is heavily weighted toward energy efficiency. The Austin Business Journal covered the seminar:
The seminar from the Chicago-based Appraisal Institute looked at issues such as the most cost-efficient sustainable building elements and how appraisers can establish a benchmark for green building valuation with so few comparisons available.A paradoxical sounding promo line from the seminar, as reported by the Austin Business Journal:
This week's seminar focused on green commercial properties, but the institute also plans to create another seminar focused on the residential appraisals.
What sustainable elements provide the "most bang for the buck?"If that is a serious question, clearly the industry has more to learn about what sustainability infers.
Image credit::ScribeMedia.org, Hobbit House How-to