by Shane Henson — June 18, 2012—Billing analysis, identification of equipment and components, and examination of results from engineering simulations are among the methods appraisers should use to assess energy cost and energy performance in buildings, according to a guide issued by the Appraisal Institute, a global membership association of professional real estate appraisers, and the Institute for Market Transformation, a DC-based nonprofit promoting energy efficiency, green building and environmental protection.
Seeking to enhance the credibility of property valuation, the two organizations issued Recognition of Energy Costs and Energy Performance in Real Property Valuation, an update of the first edition published in 2000.
The free guide includes sections on:
- How energy-cost variations affect net operating income and appraised value;
- Means for assessing energy performance in buildings;
- How to benchmark energy performance;
- Qualifications of energy assessors;
- Findings on how buyers and renters place incremental value on energy performance; and
- An overview of the most common efficiency measures: insulation, windows, lighting and HVAC.
