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Do You Have All the Information about that Solar System?

By
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

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.  Solar Classes

 

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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Comments (6)

Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Oops, sounds like some big goofs, Jan. I think you were right to speak up. I have never seen an appraisal add value for solar...the value is only to the buyer. And any lender I have seen does include any payments in figuring out if someone qualifies. I also went through a sale with solar last year and the transfer was NOT complete until after closing and we submitted documentation about the title transfer to the Solar Company, who then completed and approved the final paperwork.

Good for you! Buyers need to be fully informed!

Jeff

Jun 16, 2016 02:04 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Jeff Dowler CRS !  The topic is too important to leave 20 agents in the lurch on how to add value.  At least you can testify! 

Jun 16, 2016 02:48 PM
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

This has been a hot topic out here this year.  Many folks are taking advantage of the Mile High altitude to get lots of solar juice to power their house.  Builders are even including the panels in their new builds.  There are still some buyers who just don't want solar and they stay clear of these homes when shopping.  Solar City is big out here too.  Thanks for sharing your tidbits with us.  I feel a bit more prepared now.

Jun 17, 2016 04:26 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Jan - We're learning, as solar systems start to appear in our market. We're doing only our second deal with a leased solar system, and there is a lot of detail that's quite different from what we're used to. The specific points you mentioned above were all lessons from our first solar deal last year.

Jun 17, 2016 04:38 AM
Anna "Banana" Kruchten

I remember that doozie last year Dick Greenberg . Just glad it worked out for the buyers finally.

Jun 17, 2016 06:50 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Jan that's a tough spot to be in for sure and I've been there as well a few times.  I do my best to add to the conversation without upsetting the instructor. Sometimes I'll chat with them upfront before the class starts and they almost always (almost!!) ask me to chime in and help out. Solar is a very specific topic and YOU my dear our the local expert on solar!

Jun 17, 2016 06:52 AM
Jan Green - Scottsdale, AZ

This instructor wasn't interested in any additional information.  Finally I told her that as the "host" of the courses and that they were on the Appraisal Institute site, that got her attention.  But she couldn't look me in the eye later  I was super positive with her, gave her all gold stars, and it didn't matter.  She had worked for a solar company and I'm wondering if she's getting $ from them because she was trying to sell us on solar.  And then said you didn't have to qualify for them any more!  I didn't say anything else after the initial comment, just nodded and others were looking to me for answers. I didn't answer.  Argh!

Jun 17, 2016 09:28 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

The instructor was probably speaking from what they had been told by another agent or entity that wrote the class.  I doubt they have actual knowledge like you do.

Jun 17, 2016 08:11 AM
Jan Green - Scottsdale, AZ

Thanks Chris Ann.  She had knowledge about one company only and there are 400!  When we teach we have to disclaim everything by saying, "I've had this experience, has anyone else had experience."  But she didn't and it made her less credible.  At the end of the class, I could tell there were a few skeptics.  

Jun 17, 2016 09:29 AM