Continuing Education is a big part of real estate. Sometimes we attend classes because we need the credits. Other times we attend classes because the topic is interesting and we don't need the hours. Today was meant for the latter. The topic was interesting and I wanted to see what information was being offered.
I listened intently, focusing on the intent of the course. It was definitely informational, but I felt it had a twist to it. A sales representative was in the back of the room. I should have picked up on that tidbit right away due to the "rubber necking" that happened when I spoke with the agent adjacent to me about his solar panels.
The instructor was a long time, respected agent who clearly had good information to share, but I picked up on some details that were missing and agents needed to know. They weren't getting the entire story. It was my duty as an instructor on the topic to chime in. I tried to be gentle, making sure she knew I wasn't there to be unethical, but there was missing information on the topic.
The relevant information concerned value, something I'm intimately familiar. As a volunteer, hosting appraiser courses, I've actually sat through four days of courses on the subject, right next to the appraisers. These were specifically "Introduction to Residential Green Building, Case Studies in Green Building," and the 2 day solar course. These courses are Appraisal Institute courses, not put on by "fly by the seat of your pants" organizations. We actually fly the instructor from Florida to teach as the former Vice-Chair of Education for the Appraisal Institute. Having this kind of real time information that is still current is key to my business because I know each piece of the value chain.
So when the instructor DID NOT say that leased solar systems have no value, I had to speak up. Several heads turned and I'm not sure it came out as intended. She said that ALL panels have value, not so. She also did not say that the lease payment is added to the buyers Debt to Income ratio, a HUGE piece of information for FHA buyers that make up the majority of buyers who might be credit challenged - another issue. But I HAD to say something. Agents need to know that leased solar panels have no value. Do You Have All the Information about that Solar System?
Another key missing point is that not all solar systems transfer the day of closing. Smaller companies will transfer after the new DEED is issued. The largest solar company installing solar leased systems is Solar City. They have practices in place to transfer the day of closing, but there are more companies than just Solar City. There are over 400 solar companies in Arizona. I know because I've closed sales with other companies and had to chase down the buyer to complete documents after closing.
The instructor told me I didn't have the "transfer team" in place. Not so, there was no "transfer team," only a contact person who told me their company policy is to have the new deed in hand before processing the transfer. There was nothing I could do about it .
Believe me, you can't make this stuff up. Do You Have All the Information ABout that Solar System?
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