Straw Bale Home Appraisal Tips
Getting a straw bale home appraisal is one of the harder aspects of construction. Why? Because there are not very many, if any, comparable sales of straw bale homes out there. So how do you jump this hurdle? There are a couple of ways to do it.
The first and most promising way is to make sure the appraiser knows why there are no comparable sales near you. The reason is that people who buy straw bale homes don't often sell them. This is not because they are hard to sell but rather because they are such amazing homes that people build as forever homes and don't want to leave.
Most of the bale homes we have seen built over the years are end-user homes. This means that the people plan to live in their straw bale home until they die. At that time, they will likely hand the house down in their will to their children. We’re serious, bale home owners love their bale homes! And are often building in a sustainable way wanting their home to last for multiple generations.
The problem is that because they don't put their homes for sale on the aftermarket (meaning a sale that does not include the original construction of the home), we struggle to find comparable sales. It’s possible that when my appraiser knows that the reason for this lack of homes is that they are desirable, not that they were unmarketable, the appraised value can go UP.
Another approach to finding a comparable sale is to recognize that many, if not all, of the bale homes, will not be listed in the MLS (Multiple Listing Services) as straw bale homes. Think about it, how many times have you looked to buy a home off the MLS as a fiberglass insulation house? Probably never. Bale homes are homes first and bales second.
Finding a listing that specifies straw bale may not be possible. One avenue that might be productive is looking at "alternative homes." Sometimes, homes may be listed as such. This may include SIPs homes, rammed earth, log homes, barndomiums, and others, but they can often be used as comparable sales because they are "different" just like straw bale homes.
Use whatever you can find to get the values the appraiser needs. The fact is, bale homes are more efficient, sound proof and fire resistant than your standard conventional build. All of these details will become more and more desirable as time passes.
Finally, you can look at other straw bale homes built in your area and ask those owners how they got financing. There is a good list, albeit incomplete, as not everyone wants to list their home on a public record at www.GreenBuilder.com.
