Earlier this summer, the Appraisal Foundation’s Appraisal Practices Board (APB) adopted the first of its three valuation advisories, which are designed to assist appraisers when valuing green properties.
The first advisory—known as “Valuation of Green and High Performance Property: Background and Core Competency”—offers voluntary guidance on the background and competency necessary to credibly value green buildings and/or energy-efficient features. In particular, it discusses some of the standards and terminology around green buildings, policy initiatives, USPAP compliance, and how they all affect appraisers.
“This Valuation Advisory is an important first step in providing real property appraisers with the knowledge and tools they need to value both commercial and residential green buildings in a competent and ethical manner,” said Rick Baumgardner, APB Chairman, in a recent press release.
The APB plans to adopt the next two advisories in the coming months, which will focus on the valuation of green residential, commercial, multifamily, and institutional properties. These, along with the first advisory, are part of a project with the U.S. Department of Energy to develop guidance and educational materials for appraisers on green valuation.