The Appraisal Practices Board (APB) of The Appraisal Foundation has announced the adoption of the first of three Valuation Advisories related to the valuation of green buildings: the Valuation of Green and High Performance Property: Background and Core Competency. The green valuation advisory offers voluntary guidance to appraisers on the background and competency necessary to credibly value green buildings and/or energy-efficient features. These advisories are part of an ongoing joint project with the U.S. Department of Energy (DOE) to develop guidance and educational materials for appraisers on green valuation. Representatives from the DOE are actively participating in the development of these Valuation Advisories as Subject Matter Experts (SMEs).
“The Valuation Advisory is an important first step in providing real property appraisers with the knowledge and tools they need to value commercial and residential green buildings in a competent and ethical manner,” says Rick Baumgardner, chair of the Appraisal Practices Board. “We’re very excited to adopt two additional Advisories in the coming months that will further provide appraisers with guidance on the recognized methods and techniques related to green valuation.”
In June 2011, The Appraisal Foundation signed a Memorandum of Understanding with the Department of Energy to collaborate on a series of initiatives focused on educating appraisers on green valuation. These advisories will offer guidance to appraisers so they will be able to provide appraisals in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), the Congressionally-authorized standards for real property appraisers. Over the coming months, the APB will adopt advisories focused on the valuation of green residential properties, as well as green commercial, multifamily and institutional properties.