



The HERS index shows relative energy efficiency based on standard set of protocols.

HERS for Existing and Completed New Homes

Many multiple listings services (MLSs) now include a searchable field for a HERS rating. Real estate brokers should encourage sellers to perform a rating as they prepare their home for the market. But  the local MLS is not the only place appraisers, agents, and buyers can find the energy rating. RESNET and the Appraisal Institute have launched an Appraiser Portal, a new online service that allows Appraisal Institute professionals focused on residential valuation to access important information about the energy efficiency of more than 2 million HERS-rated homes across the U.S. As buyers become more aware of how useful the HERS rating is to their buying decisions and monthly energy costs, sales data will quickly show why a property sold for more with a low HERS rating compared to a similar house with a higher HERS rating.


HERS for Construction Loans

In the case of new construction and when a mortgage is required, the appraisal is typically done from plans. Because a Confirmed Rating (included in the Appraiser Portal) is not possible until the house is built, the appraiser usually doesn’t see the HERS Rating, and therefore doesn’t consider energy efficiency as a feature to be analyzed.  It is possible to rate the proposed or under construction house using a projected HERS rating. If builders would provide this to the appraiser at the time of appraisal, it would assist appraisers in more accurately valuing the home.

This will change as the secondary mortgage market guidelines continue to change with more emphasis on energy and green features. Fannie Mae, Freddie Mac, and FHA already require the appraiser to describe and analyze energy or green features. What better way to describe and analyze than to have a HERS Rating that takes the guessing out of the opinion!


This post originally appeared on Opinions of Value, the Appraisal Institute blog.

