Appraisal Should An Adjustment Be Made For Solar Panels Financed

The only solar system which deserves a boost in the appraisal analysis is an owned system.

Appraisal should an adjustment be made for solar panels financed.

A primer presented by instructor mark buhler. The interest rate on a refinance is typically lower than a solar loan. However if you do not own your panels whatever value that they may add cannot be included for an fha assessment. How many appraisers have boosted for solar on leased and non transferable systems.

Otherwise it s as much of a leased responsibility as it is a benefit given the uncertainties over the long term. Buhler has over 25 years of appraisal experience and specializes in the valuation of energy efficient homes which are increasingly. If your solar panel system is financed via an unpaid loan you are obliged to make monthly payments to cover your debt ownership depends on the contract signed with the lender. This additional financial commitment makes it harder to market and sell the property.

The listing agent and the appraiser should ensure that comparable market sales data included in the cost evaluation consider any available homes with solar panels sold nearby or otherwise account for the added value of your solar panels compared to homes without solar. This can be avoided by refinancing the house to finance the system. If you own a home with a solar system the fha requires to your benefit that its value be assessed and added to the total appraisal value of your home when you want to sell it. Whether the solar panels are leased and owned also may affect the appraisal.

For an overview of solar panels methods of valuation and challenges of appraising properties with solar check out our recorded webinar appraising solar panels. When the system is collateral for the loan it should not be mortgaged over.