405.03: Insulation and Energy Efficiency

Some of our appraisal report forms provide an area for the appraiser to state the "R" value for insulation (if he or she is aware of it) and to comment on the adequacy of the insulation.  The appraiser should list the additional energy-efficient features in the "comments" area.  The appraiser should also compare the energy-efficient features of the subject property to those of the comparable properties in the "sales comparison analysis" grid to assure that the overall contribution of these items is reflected in his or her opinion of the market value of the subject property.

An energy-efficient property is one that uses cost-effective design, materials, equipment, and site orientation to conserve nonrenewable fuels.  Special energy saving items should be recognized in the appraisal process.  The nature of these items and their contribution to value will vary throughout the country because of climactic conditions and differences in utility costs.