Appraisal Should An Adjustment Be Made For Solar Panels Financed

A refinance may require an appraisal but should address the value the system may or may not add to the property.

Appraisal should an adjustment be made for solar panels financed.

The interest rate on a refinance is typically lower than a solar loan. Solar panels financing through a loan that has since been paid in full means that you are now the owner of the system. 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. The only solar system which deserves a boost in the appraisal analysis is an owned 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. For an overview of solar panels methods of valuation and challenges of appraising properties with solar check out our recorded webinar appraising solar panels. 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. This can be avoided by refinancing the house to finance the system.

Whether the solar panels are leased and owned also may affect the appraisal. This additional financial commitment makes it harder to market and sell the property. Buhler has over 25 years of appraisal experience and specializes in the valuation of energy efficient homes which are increasingly. A primer presented by instructor mark buhler.

When the system is collateral for the loan it should not be mortgaged over. How many appraisers have boosted for solar on leased and non transferable systems.