Message From Our Founder
SELLING A HOME WITH SOLAR PANELS
As the real estate market evolves, homeowners and buyers are increasingly considering the benefits of sustainable living. One of the most significant trends in this regard is the incorporation of solar panels. Selling a home equipped with solar panels presents unique advantages and considerations that can significantly impact the sale process.
THE BENEFITS OF SOLAR PANELS
- Increased Home Value: Homes with solar panels often see a boost in market value, making them more attractive to potential buyers.
- Appeal to Eco-Conscious Buyers: More buyers prioritize energy efficiency and sustainability. Homes with solar panels appeal to this growing market segment, providing a competitive edge in listings.
- Reduced Energy Costs: One of the most compelling selling points is the promise of lower energy bills. Prospective buyers will appreciate the long-term savings on electricity, which can be a significant incentive.
CONSIDERATIONS WHEN SELLING
- Ownership and Financing: Clarify whether the solar panels are owned outright or leased. Owned panels are a straightforward selling point, while solar panels with a loan or lease require additional steps and can deter some potential buyers.
- Documentation and Warranties: Gather all relevant documentation, including installation records, warranties, and maintenance history. Providing this information upfront can instill confidence in buyers about the quality and reliability of the solar system. Sellers without their solar panel information, power production data, and details on transferring the system may face issues during contingency removal and complicate the transaction.
- Appraisal, Buyer’s Financing, and Inspection: Ensure you have accurate information about your solar system. Appraisers can assign value to an owned system but need to know the number of panels and system details. Leased systems or those with a lien can affect the buyer’s loan qualification and debt ratios. Missing system monitoring data, transfer information, or other details can delay the buyer in removing inspection contingencies. Keeping or locating all information on your system is crucial when deciding to sell your home.
- Disclosures: In California, a separate solar disclosure form is required. Inaccurate information can confuse buyers and fail to effectively communicate the system’s value. Ensure all details are precise to avoid any misunderstandings.
- Market Education: Not all buyers are familiar with the benefits of solar energy. Be prepared to educate potential buyers on how the system works, the savings they can expect, and any incentives or rebates available for maintaining solar panels. An effective way to demonstrate the value of your system is to provide copies of your utility bills for the past 1-2 years.
Selling a home with solar panels is a unique opportunity to tap into the growing market for sustainable living. By highlighting the benefits, addressing potential concerns, providing necessary paperwork, and effectively marketing the property, you can turn solar panels into a significant selling point that resonates with today’s eco-conscious buyers.
Doug Echelberger, Founder