Realizing the Value: An Appraiser-Led Analysis of the High-Performing Home Premium in Leading Midwest Markets

High-performing homes — often with key features such as air sealing and insulation, efficient heating and cooling systems, and solar panels — have clear benefits for those who occupy them. They are comfortable, healthy, and energy efficient and typically have lower overall energy bills. In some cases, these homes generate and store energy. Not surprisingly, the inventory of high-performing homes in the U.S. has grown steadily for decades and continues to rise.

Despite the obvious benefits high-performing homes provide to their occupants, the value they bring to real estate transactions has, to date, been far less clear. Addressing the questions  surrounding these homes’ market visibility and real estate value has the potential to shape the popularity of high performing homes and the real estate markets they reside in. The key questions at hand are:

Is there a “green” premium associated with the sale of these special homes? If there is no premium, how can we obtain the data and information required to understand and calculate such a premium?