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Florida Appraiser Finds Higher Value in ENERGY STAR HomesDarty Appraisal Service April 24, 2003 Dear Ken Fonorow, In response to your recent request, I have developed the following opinions regarding the estimated value of energy star certification. In a recent appraisal of resales of the Carmichael model in the Mentone subdivision in Gainesville Florida, I found a $4,000 value to energy star certification. This was one of the best appraisals involving energy star certification I have done recently. This appraisal involved the same model of the same home in the same area reducing many variables in the analysis. The Carmichael model is a 1,550 +/- square foot home. Larger homes may well see additional value to energy star certification. Buyers of energy star certified homes see an immediate recovery of their investment in the form of lower utility bills. Currently energy star certification costs approximately $2,000 in this market. The increase in their mortgage payments is $10-$20 per month while the energy savings is approximately $40 per month. Resulting in an immediate savings. No loss or pay back period is involved. Realtors in this area under market energy star certification. Even in the Mentone subdivision in Gainesville Florida many MLS (Realtors Multiple Listing Service) sheets do not list energy star certification as an upgrade. Many appraisers are unaware that energy star certification carries a value since many MLS sheets do not list energy star certification. The Gainesville MLS service does not even have a search feature for energy star certified homes. There is value to this upgrade. Value that actually exceeds cost. From an appraiser's point of view, buyers of energy star homes should retain their certification with their file to show future appraisers to be sure to get value for this upgrade when refinancing or to aid in marketing when reselling the home. You have my permission to reprint this letter. Karl E. Sayles |
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