Dart Board Newsletter – MAY 2017
Welcome to the May edition of our Dart Board newsletter. In this issue, I want to talk about some specialty appraisal products as well as give you an update on what’s going on here at Dart Appraisal.
Appraising Green Homes. Valuing energy-efficient, “green” homes remains an area that is relatively undeveloped. Despite decades of progress on the manufacturing/building side, it’s very clear that there is a great deal of learning and discovery that is still taking place when it comes to appraising these homes. One of the first challenges facing appraisers when valuing a green home is finding appropriate comparables. Many sustainable features, which may include solar panels, geothermal heating solutions, rain barrels, etc., are not listed in public records. Additionally, the appraiser has to determine the effect the green upgrades would have on the local market. In desert states, there is typically more demand on these green features – especially when it comes to water usage. However the same home that would increase in value thanks to its low water usage in the southwest may not see any real increase in a different area of the country.
The Appraisal Institute has published a Residential Green and Energy Efficient Addendum to standardize the communication of green and/or high-performing features of a property. The addendum identifies six green categories for which an appraiser can define value:
- Indoor environmental quality
- Maintenance and operation
The addendum notes that the energy and water elements are the most measurable elements of green or high-performance housing. When submitting an appraisal order for a green home, be sure to include as much information as possible on the energy-efficient features of the property. Any certifications, such as LEED, Zero Energy Home Ready, ENERGYSTAR, etc., should be submitted with the order whenever possible.
At Dart, we have several initiatives we’re conducting in this area. We routinely survey our appraiser panel to gain knowledge on their expertise, and also to ask for their feedback on the effect of green upgrades in certain areas. We are also working with our clients to conduct additional discovery on this topic.
Specialty Products. Along with green homes, there are several other specialty appraisal products that merit additional training from appraisers. Dart has a great deal of experience with these “niche” appraisal products such as Jumbos, Vacant Land, and Manufactured/Modular homes. Just last year, we completed more than 3,500 jumbo appraisals (the majority of which had an appraised value of more than $1 million), nearly 5,000 manufactured home appraisals, and more than 2,600 vacant land appraisals.
One of Dart’s strategic partners specializes in Manufactured/Modular homes. If you need assistance finding a lender to broker a manufactured home deal, please let me know and I’ll be happy to put you in touch with them.
School of Mortgage Banking. Last month, I completed School of Mortgage Banking I, the first course required to obtain the Certified Mortgage Banker (CMB) designation. At Dart Appraisal, we interact with lenders every day and I think it’s vital to understand their business as closely as possible. Two of Dart’s executives, Teressa Hupfer (VP of Operations) and Marc Tatarcuk (VP of Sales) come from the lending industry, and their backgrounds have provided our staff with a deeper level of knowledge and perspective as we manage our clients’ appraisal pipelines. I look forward to continuing to work towards my CMB, and to gaining even more insight into our clients’ points of view.
Road Show. This has been a busy travel month for Dart Appraisal. We attended MBA’s National Secondary Conference in New York, the Ohio MBA’s Annual Convention in Columbus, and the Texas MBA’s Annual Convention in San Antonio. I also presented at NAMB’s Legislative and Regulatory Conference in Washington, DC. Next month I’ll be headed to Lake Tahoe for the MBA Chairman’s Conference. Check out www.dartappraisal.com/events for a complete list of conferences we’ll be attending, and to schedule a meeting at any of our upcoming events.
Military Appreciation Month. May is National Military Appreciation Month, and Dart has teamed up with Operation Care Package of Michigan (OCPMI) to supply overseas troops with care packages. We’re collecting items to be included in care packages through the end of this month at our headquarters in Troy, Michigan. Items needed for care packages include toiletry items, sunscreen and bug spray, individually wrapped snacks, small games, writing supplies, DVDs, as well as hats, gloves and sunglasses. Personal letters or notes are also welcome (contact our Marketing Manager Michelle Gimbutis if you’d like to coordinate a lobby dropoff). Monetary donations to OCPMI can also be made on their website.
Thank you as always for your feedback and suggestions. If there is anything we can do to assist with your appraisal management needs, please don’t hesitate to contact me.