09/24/2024
As the nation experiences higher temperatures, more homeowners are going solar, and more buyers are interested. However, there's still some confusion about how solar installations may affect a home's value.
For example, some believe that appraisers ignore them. However, The Appraisal Institute offers education that focuses on residential solar installation.
Here are some things to keep in mind if one or more of your sellers has gone solar.
Find out if your seller is financing the solar panels. While some homeowners pay cash or do a cash-out refinance to cover the costs, others may have had them financed.
If your seller is making payments on their solar panel installation, this may cause problems, as the buyer may not be allowed to take over the payments. Be prepared to discuss this in detail with your seller.
Ask your seller for copies of past utility bills, so you'll be aware of the value the solar installation will provide to the next homeowner. Ideally, they will have a "before and after" history, so buyers will see how much they can save.
Check homeowners' insurance options. Not all insurers are as enthusiastic about solar as others.
While tax incentives may be available for solar panels, these may vary by year. Ideally, your buyer will consult a tax pro or visit IRS.gov for details of each year's incentives.
