Colorado Finance Summit: Elizabeth Million, Bank of America, MLS
Appraisal and Market Value, the MLS
Elizabeth Million – Bank of America
Residential Energy Efficiency Working Group
Appraisal Committee – MLS Improvement
Who is the REEWG – Appraisal Committee Group?
Residential Energy Efficiency Working Group (REEWG)
Appraisal Committee – MLS Improvement Recommendations
• The Appraisal Committee: a volunteer group, determining how
to integrate new searchable fields into Colorado’s Multiple
Listing Service’s (MLS); creating uniformity in “greening” our
• Comprised of Real Estate Agents, Appraisers, Lenders,
members of the Construction and Energy Efficiency
Industries, and both IRES and Metrolist
What we are currently doing at REEWG – Appraisal
• The new searchable MLS fields:
• New MLS searchable fields are split into two categories,
“Certifications” and “Features.”
• It will provide the industry with needed energy and “green”
• Quantify market value, and identify comparison data for the
appraisal and lending industries.
• Addendums lend more information on the green features of
the home, as well as, help decipher between energy-efficient
and regular homes.
How do we integrate “green” home features
into the MLS and to what end?
1. Identify the “green” attributes of a home to be added as
searchable fields in the MLS.
2. Distinguish between “green” features of a home and actual
3. Appraisers will determine if any of these features or
certifications add value to the homes.
4. Lenders/underwriters will need to be convinced that there is
added value. Even if appraisers find added value the
lenders/underwriters who ordered the appraisal must also
come to believe there is additional value.
Outreach Strategy to the Real Estate Community
Partners (ESNH, USGBC, Xcel, EcoBroker)
Real estate professionals
Getting the Information Out and
Training the Real Estate Community
• The Appraisal Committee, with the aid of the local HBAs, will obtain the email
information of the associations Homebuilders to inform them of training
opportunities (such as ENERGY STAR for New Homes trainings) and industry
events will be utilized to promote MLS improvements.
• Encourage homebuilders, through various websites, (such as Recharge
Colorado, ENERGY STAR New Homes, Xcel Energy) to contact their real estate
professional and list a new home using the improved MLS.
• Real estate professionals will have training opportunities which include the
Colorado Association of Realtors (CAR) convention, Ecobrokers, and ESNH. In
addition, local Realtor boards will convey the green changes on the MLS.
• Appraisers will be notified of training opportunities via local Realtor Boards,
Appraisal Institute, and other local Appraisal organizations.
Training, Education, and Knowledge
The webinar trainings will be offered to both real estate professionals
1. Understanding energy / green field improvements to MLS
a) definitions of fields
b) how to properly gather and enter data
. c) how to utilize the energy / green features addendum
2. Searching the new MLS for real estate professionals and
Trainings focus on tools for real estate professionals equipping them
with valuable information on opportunities for their clients to make
improvements to the home they are buying or selling.
Ecobroker, the National Association of State Energy Officials (NASEO)
and the Governor’s Energy Office (GEO), are currently partnering on
• SAMPLE TRAINING OUTLINE:
• I. Why do we need this in our MLS?
– A. Consumer service
– B. Valuation data
– C. Full and accurate representation (liability reduction)
• II. What is a “green” house, anyway?
– A. Definitions
– B. Characteristics
– C. Examples
• III. How can the seller or buyer or agent know?
– A. Third party certifications
– B. Hire an expert
• IV. The best‐known certifications in Colorado
– A. HERS Rating
– B. Energy Star® Qualified new home
– C. LEED for Homes
– D. NAHB/NGBS‐ICC 700
– E. Other certifications
• V. Features in fields and Features to highlight in text
• VI. Resources
The age old question of what comes first………?
The “Green/Sustainable/Energy Efficient Chicken…….or the Golden Egg??
Green/Sustainable/Energy Efficient Chicken
Demand for Green/Sustainable/Energy Efficient
This is the million dollar question…?
“Green Value Chain” and Value Challenges
with Green, Sustainable, Energy Efficient
Seller – need to document all green, sustainable, energy efficient features
of the home
Real Estate Agent – need to list green, sustainable, energy efficient
features or certifications in the MLS
Buyer – “purchase power” decision and willingness to pay for green,
sustainable, energy efficient features of a home
Appraiser - most important link in the value chain. Must have the market
data to determine if there is value add to green, sustainable, energy
Lender/Underwriter – decision maker for accepting appraised value and
information provided by appraiser. Very important to provide quantifiable
green data within the appraisal.
AND NOW FOR THE REST OF THE GREEN VALUE STORY……………..
This is the story of a very green home………
“GREEN HOME” Knowledgeable Green Real Estate Agent
Retrofit /New Construction list on MLS . The MLS must have Green
home ready for sale!! Data Points!
Knowledgeable Green Buyer Broker Buyer makes application with lender
Real Estate agent finds a buyer who for a green loan. Appraisal is ordered
says “I want to buy a green house” – for the green home.
now the green home is under contract
value to the
Appraiser inspects the green home for green
features & certifications – uses MLS to compare Lender/underwriter reviews appraisal
to other homes that may or may not have green
Lender/underwriter approves the loan!! Green Home is Sold!!
And they lived sustainably ever after…..
Green/sustainable/energy efficient fairy