Had a similar experience recently—appraisers often stick to traditional metrics like comps and square footage. Energy-efficient upgrades are still a bit undervalued in appraisals. Buyers definitely notice though...maybe the appraisal system just needs time to catch up?
"Energy-efficient upgrades are still a bit undervalued in appraisals. Buyers definitely notice though...maybe the appraisal system just needs time to catch up?"
I get where you're coming from, but honestly, I'm not convinced it's just a matter of the appraisal system "catching up." Appraisers rely heavily on market data, and if buyers truly valued energy-efficient upgrades enough to pay significantly more, wouldn't we already see that reflected in comps? I mean, I've toured plenty of luxury homes with impressive green features—solar panels, geothermal heating, you name it—and while buyers appreciate these things, they rarely seem willing to pay a premium that matches the investment.
Maybe it's less about appraisers lagging behind and more about buyers still prioritizing traditional luxury aspects—location, views, finishes—over sustainability. Until buyer behavior shifts dramatically, appraisers won't have the comps they need to justify higher valuations for energy efficiency. It's a bit of a chicken-and-egg scenario, isn't it?
I see your point, but from my experience, it's not just about buyers undervaluing sustainability—it's that they're often unsure how to quantify it. I built a custom home recently with extensive energy-efficient upgrades, thinking they'd boost appraisal value significantly. But when the appraisal came back lower than anticipated, the appraiser admitted there simply weren't enough comparable sales with similar features. Like you said:
"It's a bit of a chicken-and-egg scenario, isn't it?"
Seems we're stuck waiting until green homes become mainstream enough to generate solid comps...
Had a similar experience when we built our place. Appraiser seemed genuinely interested but admitted he didn't have enough comps to justify the upgrades. Like you said:
"Seems we're stuck waiting until green homes become mainstream enough..."
Guess we're early adopters paying the price...for now anyway.
- Had a similar issue with our custom build—appraiser struggled to find comps for our solar setup and energy-efficient windows.
- Wondering if anyone's had luck requesting a second appraisal or providing their own comps from nearby towns?
- Also heard some lenders might reconsider if you provide detailed receipts/invoices for upgrades...worth a shot maybe.
- Guess we're all kinda guinea pigs in this green home thing, huh?
