Homes Receive Higher Appraisals and Energy Scores by Installing Spray Foam Insulation

NAHB – June 24, 2024 – With more builders adopting green building products and practices, being able to accurately appraise higher efficiency homes is a growing need. In recent years, this has proven difficult as some energy efficiencies aren’t as visible as others — for example, opting for spray foam insulation to ensure a home has an airtight seal to prevent heating and cooling loss versus installing Energy Star-rated appliances.

This is the issue several appraisal and building industry experts delve into in the latest NAHB BizTools video Leveraging Energy Scores to Receive Higher Appraisal Values. Presenters Steve McKanna, cofounder of the Home Building Energy Efficiency Academy; Judson Willis, a green builder with Lexar Homes; Ryan Riveras, CEO of Accelerated Appraisal Management Company; and Jacob Hooper, regional director of inspectors for ICS Inspectors, aim to educate home builders on how energy scores can help them obtain higher appraisal values, sell more homes and increase their lead conversion.

In this video, the presenters explain the various methods they use to educate builders on ways to prevent green and sustainable homes from being undervalued. This includes:

• Partnering with local and state associations and NAHB, which helps builders get the necessary education they need, as well as learn about the specific building codes legislation in their area. Such partnerships can be beneficial to builders throughout the building phase and beyond, because “when you build a better home, you typically don’t have to deal with callbacks and warranty issues,” Willis said.
• Educating appraisers at appraisal management centers by providing training on best practices for green construction, such as transitioning to renewable energy sources or implementing water conservation measures.
• Advising energy rating inspectors and energy rating/consulting companies on the latest lender guideline changes, as well as getting builders up to speed on available energy program incentives including tax credits and rebates for efficient home upgrades.

Check out this clip for a sneak peek of how these tools can assist builders:

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