Fed up with Solar Systems

By
Real Estate Agent with Keller Williams Realty 01751261

Agents PLEASE stop adding value to your listings if there is Solar installed.  Especially if its LEASED.

 

I'm fed up with ye's.

 

Solution:  Talk to an appraiser

STOP IT

 

 

 

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Rainmaker
1,022,570
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Leased solar systems are treated as personal property and should be fully disclosed in the listing, too.  I've seen listings where the agent says they can be removed - NOT SO.  Solar City doesn't advertise it, but they will transfer the panels for under $1,000 to a new property for a seller.  I've not encountered any other company that will do this.

Owned solar panels do have value depending on the energy savings.  The agent must gather utility bills before and after solar, provide the Green & Energy Efficient Addendum (found on appraisalinstitute.org)  to the appraiser, Ask the appraiser if they've appraised homes with solar panels before, and provide comparable sales to the appraiser.   Doing these things will ensure maximum value if all steps are followed.  

Aug 02, 2014 09:08 AM #1
Rainmaker
56,569
Patrick Canavan
Keller Williams Realty - Yorba Linda, CA
Orange County Real Estate Voice

Hi Jan,

I am assuming Arizona is very different.  Most appraisers have a very difficult time appraising them.  Their is so much work involved.  They earn 400 - 500 an appraisal.  Not sure how much work they will do.  An appraiser will take what you give them but using them to appraise the property more than likely not.  Lenders are very concerned about them wanting to know who is the first after a lien is placed.  Title companies here in CA are still learning.  Uneducated sellers fall into the trap of leasing them.  Who needs to lease solar for 20 years when technology changes with the blink of an eye.

 

I appreciated and respect your comment.  Thanks Jan

Aug 02, 2014 09:20 AM #2
Rainer
4,752
Solar Valuations
SolarValuations
Solar Appraisal

Thank you for your post Patrick.  From my conversation with many Realtors across California I learned that installed solar equipment  is a huge value-add when owned outright by the seller.  Potential buyers love the idea of going green and saving money on their utility bills.  However, when the solar equipment is leased, potential buyers are confused on the value and hesitant to sign up for a long-term lease.  This clearly impacts marketability and value.

How much is solar equipment actually worth?  Is it worth it for a potential buyer to jump through the hoops to transfer the solar lease to her name?  Is the solar equipment pumping out optimal energy? There is a lot of ambiguity around value for both owned and leased systems.

At SolarValuations we create a customized report that provides a 3rd party assessment of the solar equipment which includes value for lifetime utility savings and total cost of ownership.  Feel free to reach out next time you encounter a solar property and I would be happy to help you sort it out.

Thanks, Mike

 

Sep 29, 2014 06:05 AM #3
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Rainmaker
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Patrick Canavan

Orange County Real Estate Voice
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