Appraisal came in lower than expected—now what?

It’s wild how slow the system is to catch up. You’d think lower bills and a more efficient house would be worth something, right?

I get where you’re coming from, but I’ve actually seen a few appraisers factor in energy upgrades—just not consistently. It really depends on the region and how much data they’ve got. In some newer developments, buyers are starting to expect solar and high-efficiency systems, so comps are finally showing up. It’s not everywhere yet, but I wouldn’t say it’s a total lost cause. Sometimes it helps to push your lender to use an appraiser with green certification, if that’s even an option. Not perfect, but I’ve seen it move the needle a bit.

Honestly, I wish I’d had your luck. In my area, even with solar and a heat pump, the appraiser barely blinked.

“Sometimes it helps to push your lender to use an appraiser with green certification...”

Appraisal came in lower than expected—now what?

Ugh, I hear you. We put so much into our place—solar, radiant floors, all the eco bells and whistles—and the appraiser basically shrugged. It’s wild how little those upgrades seem to matter on paper. Sometimes I wonder if they’re grading houses like it’s still 1995. Maybe one day buyers will care enough to push prices up, but right now…feels like we’re just ahead of the curve (and paying for it).

It’s wild how little those upgrades seem to matter on paper.

Drives me nuts every time. Appraisers are still hung up on comps, not actual value. Solar, radiant—those are real investments, but unless the neighbor has the same setup, it barely registers. I’ve seen clients appeal and sometimes get a bump if they can show utility savings or green certifications, but honestly, it’s an uphill battle. The market’s just not there yet, even if it should be.

It’s frustrating, for sure. I’ve lost count of how many times I’ve walked clients through the cost of things like spray foam insulation or high-efficiency HVAC, only to have the appraisal come back and treat it like any old house down the street. The comp system just doesn’t reward innovation unless it’s already “normal” in the neighborhood, which is kind of backwards if you ask me.

I get why appraisers lean on comps—they need something objective—but it really does ignore the long-term value those upgrades bring. I’ve seen a few buyers who are super savvy about energy costs, but most folks just see the sticker price. The only time I’ve seen a real difference is when there’s a stack of utility bills to prove savings, or sometimes if there’s a third-party certification like LEED or Energy Star. Even then, it’s hit or miss.

Honestly, until buyers start demanding these features and paying more for them, I don’t think the system will change much. It’s a slow shift... but maybe we’ll get there eventually.