A few weeks ago I shared that “Greening the MLS” can help disclose the addition of energy efficient elements in residential construction and how that might affect the liabilities of the MLS system.
Last week the Appraisal Institute introduced the Residential Green & Energy Efficiency Addendum, Version 2.0. Laura Stukel, an efficiency “insider,” is developing the Real Estate Transaction Standard Green MLS Implementation Guide for the National Association of Realtors and says:
The first version of the tool has been extremely well-received; it has worked magic to simplify how information is presented to or gathered by an appraiser, serving as a means to verify opinions of value for High Performance Homes and helping to identify competency requirements. Version 2.0 is very consistent with the first release, simply clarifying some field names and some organization tweaks that make it easier to use. Perhaps the biggest change for the appraiser is that it spells out an answer to the question: Who should complete this addendum?
For years appraisers have been offered important data that included recent local sales stats, trends and cost information. So, how does the addendum affect the loan process or the AMC as they assign the appropriate appraiser to a specific property?
First, when a completed copy of the addendum is attached to purchase or refinance paperwork, it can serve as a trigger for competency, indicating the type of experience needed for the job, especially when an AMC is making the assignment. Likewise, when a completed addendum is attached to the file, it is a consistent method for documenting the opinion of value. While the form itself is not specified in underwriting standards, consistency of its use will mean it’s less likely to trigger any red flags with the file.