Editor’s Note: The alternative energy boom has begun - here’s how one appraiser is positioning himself for the business. 

New Niche: Energy Auditing
By David Brauner, Editor

Making money through knowledge – this is how appraiser Jeff Patterson sees his future. Patterson, in the real estate industry 30 years, is broadening his practice to include energy audits- using specific protocols to show homeowners how to save money on their energy bills and lower their carbon footprint.

Patterson sees this growing area as a way to carve out a lucrative new niche by combining his appraising know how with new knowledge and expertise. With the advent of new state and federal funds, including low interest loans, tax incentives and rebates, public interest in energy efficiency is accelerating. According to Patterson, providing energy auditing is a natural fit for appraisers. “The service involves a thorough survey or audit of a home or property and assisting owners in lowering energy costs. Once a home is audited the ‘energy efficient’ improvements are eligible for many financial rewards such as tax deductions, grants and low interest loans. The process requires accurate measurement of the property, calculating the return on investment, coupled with an appraiser’s expertise and knowledge of real estate markets- specifically how these improvements will effect operating cost and value. Who better than an appraiser?”

Patterson says the market charges about $450 to $600 for an energy audit. The home or property owner typically hires the auditor again over the years to increase the energy efficiency rating and save money, Patterson says. In addition, the auditors typically will either refer the property owner to a contractor for repairs and updates or work as a general contractor in assisting the property owner in meeting their personal goals.

Getting Started
Patterson has written the Appraiser’s Guide to Energy Rating. This manual provides a jump start for this exciting growth opportunity from an appraiser who has already integrated the service into his appraisal practice. Get the appraisal and the energy audit. For an outline and to purchase ($30), see Appraiser's Guide to Energy Auditing.

A one-day webinar is available for appraisers, agents, inspectors and others to introduce you to energy auditing. Course provider CMC Energy Services has conducted over 325,000 energy audits since 1977 and trained over 2,000 energy auditors in the past five years. See Introduction to Energy Rating for more.

 

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