With the cost of solar panel installation falling and the value of solar electricity rising, it’s no surprise that nearly 1 million households in the United States have installed solar energy systems.
Read on if you’re looking to sell or buy a home that has solar panels.
Selling a House That Has Solar Panels
When it comes time to sell, solar panels boost the value of a house. A solar energy system can add roughly $15,000 to the sale price of a home on average. In the future, homes with green features such as solar panels are projected to sell faster and for a higher price.
These benefits, however, are most commonly associated with homeowners who have purchased rather than leased solar panels. According to Fannie Mae, solar systems that are leased cannot be included in a home’s mortgage evaluation. The Federal Housing Administration provides little guidance on how to evaluate leased solar arrays. If you sell your home before your lease expires, the buyer must agree to take over the solar lease or you must first pay it off. The idea of accepting a lease with several years left on it may deter some buyers.
Double-check the details of your purchase or lease before putting your home on the market. If you purchased your house with a secured loan, for example, you’d have to pay it off before selling it. However, an unsecured loan won’t prevent you from selling. Even if you don’t own or reside in the house anymore, you’ll still be responsible for the balance of the loan.
If you plan to live in your home for a long time, then leasing solar panels could be a great option.
Selling a House With Leased Solar Panels
Consider whether paying out the rest of the lease term or finding a buyer willing to take over the lease makes more sense if you’re leasing a solar energy system. You may need to lower your home’s list price or offer a credit to cover some of the lease fees to do so.
Investing in a House With Solar Panels
When you buy a home that already has solar panels installed, you can reap the perks of solar energy. It’s crucial to determine whether solar panels were purchased or leased before buying a home with them.
If the seller purchased the panels in advance, you would own them outright after buying the house. You won’t have to spend anything on the solar panels in this circumstance. The seller would be liable for repaying a loan even if the panels were purchased using a solar loan.
Know Your Options
Research your alternatives, and don’t be hesitant to ask your solar provider about any installation questions whether you’re selling or buying a home with solar panels.
Contact us today if you’re looking to purchase or sell a house with solar panels. We’d be delighted to assist you with any inquiries you may have.