On October 1, 2009, the Washington State Senate's Environment, Water and Energy Committee toured energy efficient homes in Olympia. During that tour, a local green-home developer mentioned problems with the undervaluing of green buildings by some appraisers. In response, Sen. Karen Fraser asked William Bridges [Sr. Staff Counsel, Washington State Senate, Environment, Water & Energy Committee] to draft a bill to require appraisers to take continuing education (CE) requirements on the valuation of residential green buildings.
Appraisers in Washington must currently take 28 hours of CE instruction roughly every two years. The proposed bill draft proposes to require that at least 7 of those 28 hours be related to the valuation of residential green buildings.
As appraisers everywhere know, cost does not necessarily equal value, and the issue of knowledgeability is dealt with by USPAP, which demands that appraisers be qualified (competent) to appraise the subject of an impending assignment.
This proposed bill is based on fundamental misunderstanding of property valuation and appraising, and should be smothered in the crib.
ACOW is working to change the language of the bill, in the event it cannot be thwarted outright. Please read the bill [here], and share your thoughts and suggestions with Stan Sidor, and the rest of us via the comment function of this blog.
Footnote: USPAP’s Competency Rule states: “Prior to accepting an assignment or entering into an agreement to perform any assignment, an appraiser must properly identify the problem to be addressed and have the knowledge and experience to complete the assignment competently…”