Many companies offer their Solar Panels for Homes and show you how much money you will save in “x” amount of years with renewable energy. Saving money on your electric bill is great. However, do you have plans on staying in your home for 10-20 years? Do you think you may have a job opportunity somewhere else or want to move somewhere else? Do you think of selling your house in the near future? If so, you have to decide whether Solar is the right way to go.
With so many Solar Power Companies to choose from these days, including companies with Solar Roof Shingles. Do your homework and ask lots of questions.
Are Residential Solar Panels Worth It?
- Will you be buying them? If so, again, I ask; how long do you plan on living in your house? If you plan on selling your home in a few years, it may not pay to get them. A buyer may not see the value if they only plan to live in the home for a few years.
- Will you lease the Solar Panels? If so, you should take your time and read the fine print. One thing to consider is you will decide to sell the home in a few years. Typically, would-be buyers are not always too excited to pay extra for these solar panels. Many potential buyers are unwilling to take over your lease and be on the hook for another 16-18 years. They not only have to qualify for a mortgage to buy your home, but they will also now have to qualify to lease these panels, which can affect how much how they can now afford. They were not budgeting for this extra cost. Because of this, you may lose a great, qualified buyer unless you offer to pay for the rest of the lease. This can be $15,000 to $20,000, depending on the number of panels and years left on the lease.
Home Appraisal Value
Is this starting to make sense? This is currently going on in San Diego and other parts of the country, where home sales are affected. You may also think an appraiser will add value to a home because of the home’s solar power system. This may be true. We see appraisers in San Diego adding 10-15% value to homes when the Panels are owned. This is not the case when they are leased, as stated by Fannie Mae.
With all of this being said, if you do decide to lease Solar Panels, do your homework. Ask them to go over the part of the contract that talks about transferring the lease if you were to sell your home. Make sure that you know what your obligations are before signing on the dotted line.
If you have any Real Estate related questions about selling a house in North Park, South Park, or any other neighborhood in San Diego, contact the McT Real Estate Group. We would love to help you with your real estate needs.