Appraising A Home With Solar Panels

When appraisers or real estate agents list a home on the market with solar they ll often just indicate that the home has solar panels.

Appraising a home with solar panels.

On average solar panels raise a home s value by 4 1 across the u s according to a new zillow analysis of homes across the country that s a boost of 9 274 on a 226 300 home according to the study. Historically the perspective on solar panels from many buyers and appraisers was that the return on investment along with the perceived negative aesthetic impact of large roof panels made solar panels a poor investment. Determining the value of solar panels is an issue that has many appraisers asking questions. Solar panels and green homes are becoming increasingly more common in the marketplace.

Solar panels that generate all or part of a home s electricity could become a new norm and valuation experts need to prepare. Watch our new video to find out differences between appraising properties with leased or owned solar panels how to determine if the panels are real property or personal property and more. Steps towards a higher appraisal value 1. Appraising properties with solar panels.

Find everything you need to know about solar panels and solar installation costs. If you ve seen a rise in solar panels in your area consider taking the first step toward competency in the valuation of this energy efficient feature of real estate. There might have been a time when a basic understanding of including solar value into a home s appraisal value was enough but not anymore. Solar pv systems provide financial benefits and are financially feasible in some areas.

The appraiser emphasized that solar panels are a new arena for appraisers. Whether the solar panels are leased and owned also may affect the appraisal. Use a green certified appraiser. Solar panels have increased in popularity.

The issue simply hasn t been around long enough for there to be a consensus on how to value the addition of the panels. Appraising properties with solar panels. There are so many. In a conventional home sale the buyer and their lender will be responsible.

While owning a solar system may add value to. Many appraisers are taking the position that there is no added value and perhaps some diminished value with leased solar panels because the buyer must assume the lease. The increasing amount of solar panels on homes requires that appraisers know how to value these investments properly. The skilled appraiser can assist the homeowner in understanding the size of system they need to produce the energy they use.

Engaging a skilled appraiser that understands solar photovoltaics and how to value them is a smart move before the purchase.