What About Solar Home Values in Tooele Utah
How many times have I heard “what about solar home values in Tooele Utah”?
As I mentioned last week, I had the opportunity to attend the Utah Association of Appraisers event last week. I listened to several speakers talking about the market in general, but I was really interested in the conversation regarding the valuation of solar on existing Tooele County homes, as I know we are all getting “the question” on a daily basis.
Maybe it’s really 2 questions…At any rate, the answer to the valuation question is really quite simple.
Appraisers deal with numbers, period.
At this point, they can’t really quantify the “value” of these systems as there are relatively few systems on homes that are for sale. Therefore, they can’t really assign a “value” to something that may or may not actually matter in the marketplace.
Most buyers aren’t really asking for solar yet, it’s more of one of those “features” that set a home apart. I believe that when we start seeing more homes on the market, appraisers will start using them as part of their paradigm. For the moment, they aren’t moving that way.
I’ve seen on several social media threads that those sellers that are upset that they aren’t getting a return when they sell should “request” a “green-certified” appraiser, I personally have a couple issues with this.
First, since when does a seller have the ability to request an appraiser? Last I checked, the buyer gets to pay for that, and it isn’t always a good idea to get a higher appraisal than what is required to get a loan. A refi may be a different animal, but…
Secondly, even if this were possible, I’m not a fan of artificially influencing an appraisal using “philosophical” preferences like “green” things until they are actually market-driven. Regarding the questions many of you are getting asked like “should I get solar?”, I’d be careful when answering this one.
My go-to answer to “what about solar homes value in Tooele Utah” has been pretty basic. If they are anticipating selling in the foreseeable future, and want something like a dollar-for-dollar return on investment, I’d wait until it’s an accepted item in the valuation process.
If they plan on living there until they die, and they like the cash flow numbers and the energy footprint benefits, go for it. But, ALWAYS remember to have them talk to their financial professional.
The current tax credits are going away, contrary to what the solar salespeople will tell you.
Finally, to some of the issues the sellers are finding out at the closing table regarding the outstanding debt on these systems, if you take a listing or have a buyer on one of these, get them to get some advice from a professional (not YOU!) on the ramifications of this transaction.
There are several different ways these systems are vested. Some are a lien on the home, some are a lien on the person, some are leased…
Just to be fair, and to offer a different perspective,I am going to post some articles written by others in the industry that may have a contrary view to mine. Click on these to see what others have to say
Jul 26, 2016 … Installing solar panels can significantly impact your home value, according to a new study from the Lawrence Berkeley National Lab and we …
Dec 9, 2015 … Solar systems increase home value — just not for everyone. … prospective solar system owners want to know: does a rooftop solar panel system …
Regardless of where you come down on the subject of Solar as an energy producer & investment enhancement, make sure you get the full story.
If you are an agent advising a client, make sure you give advice within the scope of your license and refer clients to the Due-Diligence Checklist and Seller Property Condition Disclosures to protect yourself…
If you need additional information or have any questions about real estate or if you want to know more about “what about solar home values in Tooele Utah I’ll do my best to answer them.
Give me a call Chris Sloan 435-840-5031.