Appraisers Think Green With 1004 Addendum

Appraisers Think Green With 1004 Addendum The Appraisal Institute has released a new form meant to assist appraisers in analyzing values of energy-efficient home features.

The form is being offered as an optional addendum to Fannie Mae Form 1004 – the standard appraisal form for mortgage lending purposes that, according to the appraisal trade group, devotes limited attention to green home features. The addendum, in contrast, allows appraisers to identify and describe such features as solar panels and energy-saving appliances, the Appraisal Institute says.

Appraisal Institute President Joseph C. Magdziarz says the addendum also will make it easier for appraisers to determine whether recent home sales should be used as comparable sales.

‘We hope lenders, home builders, real estate agents and homeowners will take advantage of this new tool,’ he says. ‘Mortgage lenders who want to see energy features analyzed should request the green addendum to be included with Form 1004. We also encourage lenders to provide the green addendum to homeowners so they can fill it out and provide it to their appraiser. If a new home is being appraised, homebuilders can use the addendum to provide data to appraisers. Real estate agents also can use the data to help populate the MLS.’

LEAVE A REPLY

Please enter your comment!
Please enter your name here