According to the National Mortgage Professional, the Appraisal Institute has updated its Residential Green and Energy Efficient Addendum. This addendum, although optional, used in conjunction with Form 1004 will include more green features of the subject property. Used by Fannie Mae, Freddie Mac and the FHA, Form 1004 without the addendum will rarely include any green features that would be used in the evaluation process.
Among other changes, the revised document has new energy fields to help appraisers collect information on a home’s green features, references to help them complete the solar section and a glossary. An area on photovoltaic cells was shortened and a solar water heating system included.
“The Appraisal Institute updated its addendum to make it easier for appraisers, lenders and consumers to use and understand,” says Appraisal Institute President Richard Borges II. “The form also will make it easier for appraisers to determine whether recent home sales should be used as comparable sales and provide assistance for Realtors in populating MLS data fields with accurate green information.”