How Green Home Improvements Can Affect Your Appraisal

How Green Home Improvements Can Affect Your Appraisal

Green home improvements are proving to be highly beneficial to home sellers and buyers.

According to The Appraisal Institute, the nation’s largest professional association of real estate appraisers, three recent studies confirm that green homes may sell for more than non-green properties. The Institute recently encouraged home sellers to consider making green home improvements to their properties, and encouraged buyers to seek homes with those features as well.

There are six elements that must be in place in order for a property officially be considered green:

  1. Site
  2. Water efficiency
  3. Energy efficiency
  4. Indoor air quality
  5. Materials
  6. Operations and maintenance

The green building trend is expected to continue to grow in the future. According to the National Association of Home Builders, the number of single-family builders with more than 90 percent of their projects dedicated to green building is expected to increase from 19 percent in 2017 to 31 percent by 2022.

Download the Appraisal Institute’s “Guide to the Residential Green and Energy Efficient Addendum” here.

The addendum states that, “An energy-efficient property is one that uses resource-effective design, materials, building systems, and site orientation to conserve nonrenewable funds.”

Check out these green home improvements you can easily implement that may improve your home’s value, as well as play your part in protecting the planet.

Solar PanelsSolar panels

Solar energy is the cleanest source of energy. Although expensive initially, you are bound to make your money back long-term with solar panel usage. Implementing solar panels in your home can bring down your energy consumption and supply excess energy. Additionally, government grants, incentives, and tax breaks are available to those who are interested in incorporating solar power in their home.

Permeable Block Caving

One of the latest green home improvements available is permeable block paving. This is a sustainable paving system used for driveways and patios. Permeable paving is similar to standard paving, but has larger gaps between paving blocks, allowing for movement of excess water through the surface, which can be collected and reused. This feature is better for the environment and for your home’s safety.


On average, more than 50 percent of a home’s energy consumption goes toward heating and cooling. Ensure the rooms on the top level of your home are all insulated to decrease energy bills Consider speaking to your energy company about an audit if you are unsure of your needs.

LED LightLamp next to bed

When it comes to lighting in your home, consider replacing all bulbs with energy-saving bulbs. LED and CFL bulbs use 80 percent less energy than standard bulbs, last longer, and produce the same strength of light.

Double-Glazed Windows

One of the key green home improvements one can make is replacing standard windows with double-glazing. These airtight windows insulate your home better than any other method and can even reduce noise pollution.

Green and energy efficient home improvements have the potential to pay dividends for buyers and sellers. If you are considering these green home improvements for your home, keep in mind that if you plan to finance your home or sell, the value may or may not be able to be proven in the market at that time, based on what recent sales activity has taken place.

Definitive Valuations is North Alabama’s premiere appraisal firm. Our mission is to provide superior valuation and consulting services in Huntsville, Alabama, and surrounding areas. Our staff strives to understand your needs and to provide the best solution for your situation – whether for financial planning, relocation, tax dispute, legal matters, pre-listing, or any other purposes. Discover more here.