Valuation Studies & Data
Valuation Case Studies and Data:
The Colorado Energy Office (CEO) was asked to answer a question; Does energy efficiency and/or renewable energy impact a home’s valuation?
In pursuit of an answer, CEO signed a Memorandum of Understanding with the Colorado Coalition of Appraiser (CCA) and the Appraisal Institute – Colorado Chapter (AI-CO) in 2012 to provide appraiser education and study energy efficiency/renewable energy impact on home sales. CCA and AI have been great partners and donated countless hours to help CEO understand the appraisal process, the issues appraisers face with changing regulations, and how to work together to develop appropriate data for appraisers.
Through the partnership, CEO has trained over 100 appraisers, including in AI’s sustainable buildings professional development program. To find a list of qualified appraisers, click here.
Along with education, CEO worked with AI and CCA to complete three studies which concluded that appraisers can value these improvements, but need better and more consistent data. The studies provide a snapshot of the market and the impact of energy efficiency or renewable energy, but more importantly show appraisers how to use various tools and resources. The valuation studies can be found here:
- The Impact of Photovoltaic Systems on Market Value and Marketability (Spring 2013)
- ENERGY STAR New Homes (Winter 2014)
- An Early Look at Energy Efficiency and Contributor Value (Spring 2015)
CEO will continue to work with AI and CCA to provide the market quality data. Currently, CEO is providing data on HERS Index Ratings. To see if a property had a HERS Index Rating and the score it received click here: