Zombie Proof Houses?
Monday, April 2nd, 2012Seriously?!
I was just on the phone with my mortgage company. Rudy, the outstanding customer service rep, told me about people calling for appraisals on Zombie Proof Homes.
We are refinancing our net zero energy home and having a tough time getting the bank or the appraisers to accept the new approaches now approved by the Appraisal Institute to value sustainable properties. Traditionally they’d rely only on comparable value of nearby homes. Well . . . . there are roughly five true net zero retrofits in the country. Where are the comps?
Sandia Labs and the Appraisal Institute now advocate that the better approach for renewable energy homes is the income capitalization approach. Surely our elimination of utility bills for life plus the addition of a contract for approximately $20,000 in solar renewable energy credits over 20 years has value. Considering that our home was consuming $2,800 per year prior to our energy retrofit and solar addition, over 25 years we have eliminated between $151,104.75 (assuming a drop in recent average energy inflation of 5.5%) to $189,494.12 (assuming projected 7% energy inflation).
So somewhere between $0.00 and $210,000 ($190k + $20k for SRECs) is the amount someone would pay for the privilege of comfort, savings and energy security.
Do zombie proof houses provide the same risk to value ratio? Maybe I should build a zombie proof net zero home.
Matt is honored as a 2012 Michigan Green Leader by the Detroit Free Press. His home is the oldest in America to achieve net zero energy. Come join the conversation on Matt’s fan page, Facebook page, Google+and Twitter








