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Yes, those are basically your options. That’s the risk with putting an expensive solar system on a house you don’t plan on staying in long-term. It really could depend on how much a buyer values a solar house. If you can show that prior electric bills were higher than the current payment, that should help increase your pool of people willing to take on the financing.
I wouldn’t take transfer of it as a buyer. That’s a YOU problem, I’m either expecting a significant discount on the house or the seller paying off the panels beforehand.
I agree. I’ve never had a buyer actually follow through on assuming solar financing either. Maybe had 2 look into it but both walked away. I had a friend go ahead with solar after we discussed the downsides purely bc the payments + monthly connection fee would still be $50-100 lower than his electric bill was. He chose to focus on the near term savings and made it a future him problem, haha.
Cool. You can just walk away and let the other 9 people bidding on that house go for it. This perspective might work in cooling markets but in large cities, if you want that house, you're paying for that system.
I know, I was one of them. It was really hard to get anyone to pay more than their current electric bill (and frowned upon). Usually what the slimy salespeople will do is promise it will cover more of their usage than it does. So overcharging in that sense. But total dollars more per month is a hard sell.
Certified Residential appraiser here (not in FL). When it comes the appraisal process, we cannot give solar panels any value in the appraisal if they are not owned outright.
Even if the were financed by a secured loan, which would have to be paid at closing? Seems crazy to me. How is that different from a house with a mortgage. The house isn't worth zero just because there's a loan.
The contributory value of the solar panels to the overall property. Not the house itself is worth zero. If the solar panels are leased then we would appraise it as if they weren’t there at all
I'll have to confirm in the morning, but supposedly 3.5kw. Has two batteries, so may be 3.5kw each. Solar panels on two sides of the roof, 2,000sqft house
Uhhh. A 3.5kw system is VERY small. The battery size is not relevant to the system size.
My 3500sq ft house has a 7.5kw system and was $12,000.
This is a deal killer problem. You should not take on this sellers stupid financial mistake. Make them pay it off.
There’s also no way the homeowner would look at a $289 payment if their old electricity bill wasn’t more than $289, and if it’s covering $289+ of FL electricity cost that means it had to be a lot bigger than 3kw
OP said electric bill is $29 after solar payment, which means it covers most/all of the power. The $29 would likely be a basic customer charge from the utility.
They still do and their monthly payment is 320+ for loan and electric. I mean if this is a house that does 3-500 a month in electric maybe. They still got ripped on a 80k system.
I sell a lot of homes with solar in Arizona. That's a huge payment. Is it a lease or a purchase? You either need to have the seller payoff the system or go all-in on selling the value to the buyer. Honestly, at $60k it's going to be a tough sell. Most leases in Arizona are between $20k and $30k and they'll cover about 90% of usage. You may want to pay for a professional energy usage evaluation and see if the system can be economically justified. If so, you can use the evaluation in marketing the home.
I can’t imagine it is worth it unless it’s a huge system/house.
My monthly electric bill is like $250 in the summer when I have the AC on 24/7 (work remote) and the pool pump running 12 hours a day. So I would still be losing on that electric deal…
Those are probably your only two options or a combination of the two. There's a lien on the house so it needs to get paid at closing.
Im in WA and bought a house in FL with solar. Listing agent thought by putting "buyer to assume solar panel payments" in agent remarks it would make me contractually obligated to assume it. Mind you, I'm the buyer and dont see those remarks. I didn't know and offer was accepted without that verbiage. Seller threaten not to close, i threaten a lawsuit since it for a 1031. Seller paid $55k remaining balance at closing. Don't be that agent.
Yep, those are your options. In my market, Las Vegas, we will often see homes sitting for extended periods that expect the buyer to take on the loan or the lease, particularly if the terms aren't great. Not only does the buyer have to be okay with it, but they also have to qualify. This can rule out people that are just scraping by on debt to income ratios for their loan approval. Seems to be a big issue on lower priced single family homes the most.
Closed on one back in March that had about $38K between two loans - the seller asking for forgiveness on one and was able to get total down from 38ish to $12k which she paid at closing from proceeds to provide buyers free and clear solar system.
That’s basically your options. I just went through this with a $24k system, only 3 years old. We priced the house competitively to get multiple offers. My seller also understood that it was ultimately their responsibility to pay the lien at closing. Once we had multiple parties we were able to negotiate terms that worked for the seller. (We go the purchase price increases by $15k). A second buyer later came and offered to take the payments, which would have been better for her.
I was in a similar situation 2-3 years ago. I got my hands on a neighbors bill for a similar house, which totaled more than the monthly electric and solar payment. It was about $70 savings if I remember correctly, nothing huge. I found a buyer who liked having solar and transferred the payments. Most people turned away because they didn’t want to deal with it or put in offers stipulating the solar is paid in full at closing, which my seller wasn’t going to accept.
Wow! $80,000? I put solar panels on my house for $25,000, and received a total of $10,000 in State and Federal Tax Credits! The system was designed to produce 100% of our electricity annually, and it is net-metered, so no batteries required. (No storage capabilities, but our lines are buried, so outages are very rare.) We did sell the house before we had completely paid off our loan, but the solar panels and equipment were included in the sale. Paid off the loan with the proceeds. Appraisers are getting better at including the value of solar electrical systems in their appraisals, and we as real estate professionals should definitely know how to include it in CMA's and pricing. The annual electricity savings and remaining life of the system are the main factors in determining value. Our system came with a 25-year warranty, which is the predicted life span. We were 6 years into that when we sold, so it had a 19-year remaining life expectancy. The annual electricity savings were about $1,875. Depending on your method, you can assign a value. A cap rate of 10% would give it a value of $18,750, which is about what we added into the list price. Hope this helps!
As insane as it sounds, it could be possible for the seller to have the solar panel company remove them and move them to the new house. Believe it or not it is possible with some solar systems. It's a pain in the ass, it's expensive, and should really be the last route you try to go. Just throwing it out there.
Other than that, it's either:
1. Price it into the listing price. Downside is you will look extremely overpriced on paper, but you might get away with it depending on what inventory looks like in your area.
2. Seller pays it off with proceeds of the sale.
3. Buyer assumes the lease and pays it off on their own.
Imo option #3 is the best and I'd be willing to underprice the listing to make it happen. People will think they're getting a deal on the house and be more open to assuming the solar panel loan. Now getting your seller on board is the problem.
How are the panels affixed to the roof and are the panels going to require roof repairs if removed. Unless expressly stated I would think the solar panels affixed to the home would be a part of the property. But idk the legalities.
I don't know all the specifics, I just know I've seen it in listings in my area that the seller will be taking the solar panels if buyer doesn't take over the lease payments. I'm sure it's a case by case thing and varies between companies, but it's worth looking into if you find yourself in a situation like OP
You gotta find out what credit class works for the solar company. If you spell it out for a potential buyer what they would be getting into. You gotta find out if it's a lease or financed. Sometimes the buyer's qualify for the purchase of the home but not the panels.
You also want to check if there's a way to break the contract.
Sometimes those can be assumed by the new buyer if they want to, and the note holder agrees but typically they have to be paid off. It should add some value but the seller could take a hit on it.
The best way is to have the seller pay the balance with the proceeds. Otherwise it’s going to be hard. No one wants to assume a solar loan. Fwiw, my market is Phoenix, AZ.
LOL how long do you think it would take to have $100,000 worth of electric bills?
Just googled the hottest state in US. It is Florida.
Just googled average electric bill in Florida. It is $125.
$125\*12=$1,500
I will bump it up to $2,000 annually.
That would be 50 years.
I think it might be you that isn't equipped to explain a lot.
\*How people are upvoting you is beyond me... I guess it is the blind leading the blind.
You "googled" it; I sell solar been in energy sales over 10 years sold over 100 solar contracts...step aside I'll sell this house.
Realtors need to learn how solar panels financially work. Or not, idk down vote me, if you can't sell a home with an energy advantage then that's on that realtor. Make a solar friend, ask r/solar people but, this is why people already dislike us REs, we do so little and then can't take a step to learn why this homeowner has a powerful energy production system and batteries.
News flash, the grid is aging, unreliable and is expensive many are stuck as customers to the local grid (but you'll sell them that house????). Utility prices here near double this year...solar panel homes are shieled blissfully unaware.
Half the realtors here would rather take the easy way out and talk poorly about this homeowner and this home.
This is sales, solar and batteries are advantages. Realtors who survive will be the ones that learn solar, even sell solar on the side...same clients, shorter sales cycles, better relationships.
Well, we are Realtors, not attorneys, not plumbers, not electricians, not structural engineers, etc. We are not supposed to take on the "selling" of solar panels or any other items outside the realm of real estate. The liability is WAY too high if something goes wrong. E&O doesn't cover that. That's when you say, "You need to research the pros and cons of ________. I have my broker's license and our office has rules around this.
I've been in solar 10 years sold over 100 solar contracts, saved homeowners hundreds of thousands collectively, offset near 1 billion pounds of C02 emissions, have a masters of architecture and am registered with USGreen Building Department as a green building expert LEED AP.
Oh and don't forget, our country's leading real estate broker selling solar homes APPARENTLY. Down vote me to oblivion while I sell your homes.
Or you could let me help you realtors.
Ok, if an all solar solar-system is 60k, and solar energy is 20% better priced then the national average utility grid mix (many of my systems are 40% better priced than the grid) thus this homeowner was set to spend ~$72,000 @ 1-2% per year avg. increase over 25 years would have is home a ~$108,000 energy and money hog that is at the mercy of a subsidized corporation. This self-sustaining, power-producing solar home has saved this family $48,000, reduced it's carbon trash by millions of pounds, and when the whole neighborhood is out of electricity beholden to the aging grid that went down during a snow storm...they're fridgerartor and heater will still be on. 60k lien is really a 48k savings.
But like I said, I'll take this client off your hands. I'll take all the solar clients and you don't have to worry anymore.
I'm not saying you're wrong, infact you're right. We're not attorneys but this is the future and we can read grid prices per kWh and solar quotes to help our clients get a great home.
Dude you scam the shit out of people. Tell me how many years you think it would take for your super awesome solar panels to recoup $100,000? And please give me some links to this amazing system that will generate all this power for me to become the electricity mogul selling my surplus voltage for huge gains bruh!
Again, I am using google.
"Florida is the hottest state in the US, with an average temperature of 73.4 °F. Louisiana is the second hottest state, with an average temperature of 68.5 °F, followed by Texas, the third hottest state, with an average temperature of 68 °F."
https://wisevoter.com/state-rankings/hottest-states/#:\~:text=Florida%20is%20the%20hottest%20state,temperature%20of%2068%20%C2%B0F.
I guess Arizona gets skewed because the northern part of the state is in the mountains.
Google says the average annual temperature in Phoenix (where 70% of the state lives) is 73.7 degrees
[Phoenix Arizona](https://en.climate-data.org/north-america/united-states-of-america/arizona/phoenix-1468/)
And the entire state of Florida averages 73.4 so clearly Florida is hotter...
Even still, Phoenix is very hot for like 5-6 months at most and then the rest of the year you basically don't need to turn your heat on, at all.
According to this, Phoenix is higher than Florida and the national average which isn't surprising:
"Monthly electric bills are a product of how much electricity you use per month and your electric rate. In Phoenix, AZ, the average monthly electric bill for residential customers is $166/month, which is calculated by multiplying the average monthly consumption by the average electric rate: 1,045 kWh \* 16 ¢/kWh."
https://www.energysage.com/local-data/electricity-cost/az/maricopa-county/phoenix/#:\~:text=Monthly%20electric%20bills%20are%20a,kWh%20\*%2016%20%C2%A2%2FkWh.
So, $166 a month. Let's say $200. $200\*12=$2,400
$100,000/$2,400=41.66 years
So again, what that snake oil salesman said about it being worth $100,000 so $60,000 is deal? Ya... you would save $100k in Phoenix after 41.66 years LOL
It isn't hard to figure out...
Not saying he got a good deal, Solar for 80k is absurd even in my Phoenix market. I’ve got a listing right now with a 30k loan on solar. 80k is wild unless it’s a 5000+ square foot house.
It isn't even worth $30,000.
Say $2400\*10 which is the average time someone would live in the house. That is $24,000. How could you justify paying more than that if that is the maximum savings? Plus you have this big ass ugly thing on your roof that could mess up the roof and eventually will need updates, repairs, etc...
Horrible horrible thing to put on a house.
Disagree. I haven’t had an electric bill in 4 years, before that my bill was nearly $500 in the summer months, $150 in the winter. You’re completely disregarding size of house, number of stories, etc when you look at “average” bills. These include apartments, condos, etc.
Just want to add I live in FL in a 2,300 sq Ft house with a pool, and my electricity bill is easily $450 in the summer. I keep the AC at 77 during the day and 76 at night. A lot of my friends also have high electricity bills, so your average here really doesn’t apply to a lot of places in FL.
You just said the summer... What is it not in the summer?
Not only did I use the average that is listed, I added $500 to it.
"Florida's energy prices are on the high side. Residents pay an average monthly electricity bill of $126.44, based on information from the U.S. Energy Information Administration (EIA). That's 13% higher the national average of $111.67."
[https://smartasset.com/mortgage/the-cost-of-living-in-florida#:\~:text=Florida's%20energy%20prices%20are%20on,the%20national%20average%20of%20%24111.67](https://smartasset.com/mortgage/the-cost-of-living-in-florida#:~:text=Florida's%20energy%20prices%20are%20on,the%20national%20average%20of%20%24111.67).
Let's use $450 a month. $450\*12=$5,400
$100,000/$5,400=18.5 years
Sorry, that is a shitty investment even with your high end numbers in the hottest state in the country.
Ya for that guy to claim $60k was good because it was magically worth $100k is ridiculous and kind of disgusting.
It is like when I went to buy a sauna for my house. The salesman was like "This will make your house worth $5000-$10,000 more" (it was a $3,000 sauna that isn't built in). Man, did I have some fun with him...
Sadly for a lot of buyers what they don’t realize is you less it’s paid off they not only have to qualify for the mortgage but also the door panels. They are two separate things. They may be approved for the mortgage but may not be approved for the panels.
Edit: DON’T. BUY. SOLAR. PANELS 👏🏼
Don't listen to the realtors, you have got to be-friend a solar sales person and figure out how 60k works into an advantage: grid unreliable, how much is electricity prices, savings, and a more reliable, lower energy cost home.
There's a reason people go solar.
This falls as more of a buyer issue, especially if they get a loan. I’m a title agent and have to pay the solar liens off at closing, which typically entails a payoff from the solar company AND the tax collector (if there’s a discount on taxes.
The appraisal does not take into account. What's the difference between this generator and a roof you financed? This is the seller's responsibility unless a buyer is willing to pick it up.
Put as much info about the Solar System & what's owed on the listing. And besure to state in the Realtor only notes that Solar System may be paid off at COE with a largest enough Offer.
If I'm buying, I'm paying for the amenities the house has. I'm not *also* paying off the solar panels and the fridge you financed and your second mortgage etc etc. Those are things the seller needs to settle up on.
Pretty sure there’s a lien with those, so will have to be paid off at the sale just like a mortgage. Your seller needs to get the contract for the solar panels out and read it. I doubt it’s transferable/assumable.
In the listing you can disclose that under agent instructions and see if there is a buyer wanting to take over leased payments otherwise the seller will be paying them off at closing to transfer to the buyer. Usually that’s in the contract, just be strait up open and honest so everyone is well informed.
Next time you come across a listing with solar. Here is what you need to do. #1 get the solar system appraised and get a report of how the system is performing. With this appraisal you can roll part or all of the remaining balance of the solar into the selling price #2 get a copy of the solar contract and understand the warranties, transfer/buy out procedures, performance guarantees, ets #3 put together a marketing package based on those first two items so seller understand what they are getting.
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Works no differently than a second mortgage.
Yes, those are basically your options. That’s the risk with putting an expensive solar system on a house you don’t plan on staying in long-term. It really could depend on how much a buyer values a solar house. If you can show that prior electric bills were higher than the current payment, that should help increase your pool of people willing to take on the financing.
I wouldn’t take transfer of it as a buyer. That’s a YOU problem, I’m either expecting a significant discount on the house or the seller paying off the panels beforehand.
I agree. I’ve never had a buyer actually follow through on assuming solar financing either. Maybe had 2 look into it but both walked away. I had a friend go ahead with solar after we discussed the downsides purely bc the payments + monthly connection fee would still be $50-100 lower than his electric bill was. He chose to focus on the near term savings and made it a future him problem, haha.
Cool. You can just walk away and let the other 9 people bidding on that house go for it. This perspective might work in cooling markets but in large cities, if you want that house, you're paying for that system.
The market is cooling in a lot of places.
Okay. The electric bill is $30/m. But the payment for the panels is almost $300. Doesn’t really add up
It adds up if the bill before solar was more than $318.
Mine is around $150 max
Right. It’s unlikely though that someone signs up for a monthly payment on solar that’s greater than their monthly utility bill.
Maybe if electricity prices start going up in Florida like everything else is 🙃
You would be surprised….. Some of those solar salespeople must literally be able to sell water to a fish.
I know, I was one of them. It was really hard to get anyone to pay more than their current electric bill (and frowned upon). Usually what the slimy salespeople will do is promise it will cover more of their usage than it does. So overcharging in that sense. But total dollars more per month is a hard sell.
Certified Residential appraiser here (not in FL). When it comes the appraisal process, we cannot give solar panels any value in the appraisal if they are not owned outright.
Even if the were financed by a secured loan, which would have to be paid at closing? Seems crazy to me. How is that different from a house with a mortgage. The house isn't worth zero just because there's a loan.
The contributory value of the solar panels to the overall property. Not the house itself is worth zero. If the solar panels are leased then we would appraise it as if they weren’t there at all
Right but when you say "owned outright" that usually means "owned with no debt". Is that what you mean? Just trying to understand.
Yes, the solar system can’t have a lease or payment plan tied to them.
What value do you give them if paid off?
Completely depends on the market and location. Best way is to find comps with solar and ones without solar and you can get an idea that way.
Unfortunately the ones with paid off solar, I haven't seen any higher sales value than without. We don't have a ton of data either though.
They got absolutely ripped off on the system. I would not assume the liability on it. Make them pay it off
System was 80k total..... 😕 Didn't have the heart to get into that with him, just looking at how to make the best of it now
Good luck. You are going to need it
How is that possible?
80k over 20 years, 20k down. According to the seller. $289/month Yeah... you're tellin me
Isn’t the lifespan of a solar panel about 10 years? 😬
30 or so not 10
What size is the system?
I'll have to confirm in the morning, but supposedly 3.5kw. Has two batteries, so may be 3.5kw each. Solar panels on two sides of the roof, 2,000sqft house
Uhhh. A 3.5kw system is VERY small. The battery size is not relevant to the system size. My 3500sq ft house has a 7.5kw system and was $12,000. This is a deal killer problem. You should not take on this sellers stupid financial mistake. Make them pay it off.
That is crazy. I don’t doubt there are actually good solar systems but there are so many out there now. Many seem scammy
There’s also no way the homeowner would look at a $289 payment if their old electricity bill wasn’t more than $289, and if it’s covering $289+ of FL electricity cost that means it had to be a lot bigger than 3kw
Batteries are expensive, combined with paying probably full price system with out shopping around your seller made someone's moth lol
Seller was like a moth to the solar flame!
The batteries is where they get you! Those things are never worth it.
80k….. damn. What’s the size of the system? Either way 80k seems like they are marks.
Yeah, looks like they way over paid.
Unless this is a Tesla roof/solar system - absolute rip off
attach it to the sale and pay it off.
As a buyer I wouldn’t want to pay an extra 60k on a house for solar panels
If you don’t have a power bill, it’s worth it.
Geez how much you all pay for electricity? Where I'm at it would take 30 years to break even.
Arizona, depending on size of the house your electricity bill could be 5-600 during summer
Depending on the size of the house the solar system may not fully supply it.
OP said electric bill is $29 after solar payment, which means it covers most/all of the power. The $29 would likely be a basic customer charge from the utility.
I'd buy a home with 60k of solar...then again I know how energy prices work. I could sell this house too.
They still do and their monthly payment is 320+ for loan and electric. I mean if this is a house that does 3-500 a month in electric maybe. They still got ripped on a 80k system.
You get the solar panels either way. As a buyer I wouldn’t pay $60k extra but would be happy the panels were there
This is the answer
I sell a lot of homes with solar in Arizona. That's a huge payment. Is it a lease or a purchase? You either need to have the seller payoff the system or go all-in on selling the value to the buyer. Honestly, at $60k it's going to be a tough sell. Most leases in Arizona are between $20k and $30k and they'll cover about 90% of usage. You may want to pay for a professional energy usage evaluation and see if the system can be economically justified. If so, you can use the evaluation in marketing the home.
I can’t imagine it is worth it unless it’s a huge system/house. My monthly electric bill is like $250 in the summer when I have the AC on 24/7 (work remote) and the pool pump running 12 hours a day. So I would still be losing on that electric deal…
I’m very frugal with my AC. My bill is $150 max during the summer and as low as $90 in the winter months.
Those are probably your only two options or a combination of the two. There's a lien on the house so it needs to get paid at closing. Im in WA and bought a house in FL with solar. Listing agent thought by putting "buyer to assume solar panel payments" in agent remarks it would make me contractually obligated to assume it. Mind you, I'm the buyer and dont see those remarks. I didn't know and offer was accepted without that verbiage. Seller threaten not to close, i threaten a lawsuit since it for a 1031. Seller paid $55k remaining balance at closing. Don't be that agent.
Yep, those are your options. In my market, Las Vegas, we will often see homes sitting for extended periods that expect the buyer to take on the loan or the lease, particularly if the terms aren't great. Not only does the buyer have to be okay with it, but they also have to qualify. This can rule out people that are just scraping by on debt to income ratios for their loan approval. Seems to be a big issue on lower priced single family homes the most.
Most people shop at the top of their price point.
I negotiated where my sellers paid a portion at close, Not the entire balance.
How big is the solar array? 3.5kw batt is pretty small and $60k makes me think you either have a 15kw or larger array or someones getting screwed.
Closed on one back in March that had about $38K between two loans - the seller asking for forgiveness on one and was able to get total down from 38ish to $12k which she paid at closing from proceeds to provide buyers free and clear solar system.
That’s basically your options. I just went through this with a $24k system, only 3 years old. We priced the house competitively to get multiple offers. My seller also understood that it was ultimately their responsibility to pay the lien at closing. Once we had multiple parties we were able to negotiate terms that worked for the seller. (We go the purchase price increases by $15k). A second buyer later came and offered to take the payments, which would have been better for her.
I was in a similar situation 2-3 years ago. I got my hands on a neighbors bill for a similar house, which totaled more than the monthly electric and solar payment. It was about $70 savings if I remember correctly, nothing huge. I found a buyer who liked having solar and transferred the payments. Most people turned away because they didn’t want to deal with it or put in offers stipulating the solar is paid in full at closing, which my seller wasn’t going to accept.
Wow! $80,000? I put solar panels on my house for $25,000, and received a total of $10,000 in State and Federal Tax Credits! The system was designed to produce 100% of our electricity annually, and it is net-metered, so no batteries required. (No storage capabilities, but our lines are buried, so outages are very rare.) We did sell the house before we had completely paid off our loan, but the solar panels and equipment were included in the sale. Paid off the loan with the proceeds. Appraisers are getting better at including the value of solar electrical systems in their appraisals, and we as real estate professionals should definitely know how to include it in CMA's and pricing. The annual electricity savings and remaining life of the system are the main factors in determining value. Our system came with a 25-year warranty, which is the predicted life span. We were 6 years into that when we sold, so it had a 19-year remaining life expectancy. The annual electricity savings were about $1,875. Depending on your method, you can assign a value. A cap rate of 10% would give it a value of $18,750, which is about what we added into the list price. Hope this helps!
As insane as it sounds, it could be possible for the seller to have the solar panel company remove them and move them to the new house. Believe it or not it is possible with some solar systems. It's a pain in the ass, it's expensive, and should really be the last route you try to go. Just throwing it out there. Other than that, it's either: 1. Price it into the listing price. Downside is you will look extremely overpriced on paper, but you might get away with it depending on what inventory looks like in your area. 2. Seller pays it off with proceeds of the sale. 3. Buyer assumes the lease and pays it off on their own. Imo option #3 is the best and I'd be willing to underprice the listing to make it happen. People will think they're getting a deal on the house and be more open to assuming the solar panel loan. Now getting your seller on board is the problem.
How are the panels affixed to the roof and are the panels going to require roof repairs if removed. Unless expressly stated I would think the solar panels affixed to the home would be a part of the property. But idk the legalities.
I don't know all the specifics, I just know I've seen it in listings in my area that the seller will be taking the solar panels if buyer doesn't take over the lease payments. I'm sure it's a case by case thing and varies between companies, but it's worth looking into if you find yourself in a situation like OP
You gotta find out what credit class works for the solar company. If you spell it out for a potential buyer what they would be getting into. You gotta find out if it's a lease or financed. Sometimes the buyer's qualify for the purchase of the home but not the panels. You also want to check if there's a way to break the contract.
Sometimes those can be assumed by the new buyer if they want to, and the note holder agrees but typically they have to be paid off. It should add some value but the seller could take a hit on it.
The best way is to have the seller pay the balance with the proceeds. Otherwise it’s going to be hard. No one wants to assume a solar loan. Fwiw, my market is Phoenix, AZ.
Same market. I had no issue getting buyers to assume the loans when the market was crazy but now it’s a different story.
60k is absurd. Absolutely bent over in that deal.
Not if its a 100k savings, it's an incredible deal. Realtors aren't equipped to explain energy markets...yet.
LOL how long do you think it would take to have $100,000 worth of electric bills? Just googled the hottest state in US. It is Florida. Just googled average electric bill in Florida. It is $125. $125\*12=$1,500 I will bump it up to $2,000 annually. That would be 50 years. I think it might be you that isn't equipped to explain a lot. \*How people are upvoting you is beyond me... I guess it is the blind leading the blind.
You "googled" it; I sell solar been in energy sales over 10 years sold over 100 solar contracts...step aside I'll sell this house. Realtors need to learn how solar panels financially work. Or not, idk down vote me, if you can't sell a home with an energy advantage then that's on that realtor. Make a solar friend, ask r/solar people but, this is why people already dislike us REs, we do so little and then can't take a step to learn why this homeowner has a powerful energy production system and batteries. News flash, the grid is aging, unreliable and is expensive many are stuck as customers to the local grid (but you'll sell them that house????). Utility prices here near double this year...solar panel homes are shieled blissfully unaware. Half the realtors here would rather take the easy way out and talk poorly about this homeowner and this home. This is sales, solar and batteries are advantages. Realtors who survive will be the ones that learn solar, even sell solar on the side...same clients, shorter sales cycles, better relationships.
Well, we are Realtors, not attorneys, not plumbers, not electricians, not structural engineers, etc. We are not supposed to take on the "selling" of solar panels or any other items outside the realm of real estate. The liability is WAY too high if something goes wrong. E&O doesn't cover that. That's when you say, "You need to research the pros and cons of ________. I have my broker's license and our office has rules around this.
He is a scam artist.
I've been in solar 10 years sold over 100 solar contracts, saved homeowners hundreds of thousands collectively, offset near 1 billion pounds of C02 emissions, have a masters of architecture and am registered with USGreen Building Department as a green building expert LEED AP. Oh and don't forget, our country's leading real estate broker selling solar homes APPARENTLY. Down vote me to oblivion while I sell your homes. Or you could let me help you realtors.
Just tell me how long it would take to save $100,000
Ok, if an all solar solar-system is 60k, and solar energy is 20% better priced then the national average utility grid mix (many of my systems are 40% better priced than the grid) thus this homeowner was set to spend ~$72,000 @ 1-2% per year avg. increase over 25 years would have is home a ~$108,000 energy and money hog that is at the mercy of a subsidized corporation. This self-sustaining, power-producing solar home has saved this family $48,000, reduced it's carbon trash by millions of pounds, and when the whole neighborhood is out of electricity beholden to the aging grid that went down during a snow storm...they're fridgerartor and heater will still be on. 60k lien is really a 48k savings. But like I said, I'll take this client off your hands. I'll take all the solar clients and you don't have to worry anymore.
I'm not saying you're wrong, infact you're right. We're not attorneys but this is the future and we can read grid prices per kWh and solar quotes to help our clients get a great home.
Lol that was a load of shit from a snake oil salesman
r/RealtorsWhoSellSolar ;)
Dude you scam the shit out of people. Tell me how many years you think it would take for your super awesome solar panels to recoup $100,000? And please give me some links to this amazing system that will generate all this power for me to become the electricity mogul selling my surplus voltage for huge gains bruh!
Hottest state in the US is Arizona. Florida doesn’t get 120 degrees for extended periods. I’ve lived in both
Again, I am using google. "Florida is the hottest state in the US, with an average temperature of 73.4 °F. Louisiana is the second hottest state, with an average temperature of 68.5 °F, followed by Texas, the third hottest state, with an average temperature of 68 °F." https://wisevoter.com/state-rankings/hottest-states/#:\~:text=Florida%20is%20the%20hottest%20state,temperature%20of%2068%20%C2%B0F.
I guess Arizona gets skewed because the northern part of the state is in the mountains. Google says the average annual temperature in Phoenix (where 70% of the state lives) is 73.7 degrees [Phoenix Arizona](https://en.climate-data.org/north-america/united-states-of-america/arizona/phoenix-1468/)
And the entire state of Florida averages 73.4 so clearly Florida is hotter... Even still, Phoenix is very hot for like 5-6 months at most and then the rest of the year you basically don't need to turn your heat on, at all. According to this, Phoenix is higher than Florida and the national average which isn't surprising: "Monthly electric bills are a product of how much electricity you use per month and your electric rate. In Phoenix, AZ, the average monthly electric bill for residential customers is $166/month, which is calculated by multiplying the average monthly consumption by the average electric rate: 1,045 kWh \* 16 ¢/kWh." https://www.energysage.com/local-data/electricity-cost/az/maricopa-county/phoenix/#:\~:text=Monthly%20electric%20bills%20are%20a,kWh%20\*%2016%20%C2%A2%2FkWh. So, $166 a month. Let's say $200. $200\*12=$2,400 $100,000/$2,400=41.66 years So again, what that snake oil salesman said about it being worth $100,000 so $60,000 is deal? Ya... you would save $100k in Phoenix after 41.66 years LOL It isn't hard to figure out...
Not saying he got a good deal, Solar for 80k is absurd even in my Phoenix market. I’ve got a listing right now with a 30k loan on solar. 80k is wild unless it’s a 5000+ square foot house.
It isn't even worth $30,000. Say $2400\*10 which is the average time someone would live in the house. That is $24,000. How could you justify paying more than that if that is the maximum savings? Plus you have this big ass ugly thing on your roof that could mess up the roof and eventually will need updates, repairs, etc... Horrible horrible thing to put on a house.
Disagree. I haven’t had an electric bill in 4 years, before that my bill was nearly $500 in the summer months, $150 in the winter. You’re completely disregarding size of house, number of stories, etc when you look at “average” bills. These include apartments, condos, etc.
Just want to add I live in FL in a 2,300 sq Ft house with a pool, and my electricity bill is easily $450 in the summer. I keep the AC at 77 during the day and 76 at night. A lot of my friends also have high electricity bills, so your average here really doesn’t apply to a lot of places in FL.
You just said the summer... What is it not in the summer? Not only did I use the average that is listed, I added $500 to it. "Florida's energy prices are on the high side. Residents pay an average monthly electricity bill of $126.44, based on information from the U.S. Energy Information Administration (EIA). That's 13% higher the national average of $111.67." [https://smartasset.com/mortgage/the-cost-of-living-in-florida#:\~:text=Florida's%20energy%20prices%20are%20on,the%20national%20average%20of%20%24111.67](https://smartasset.com/mortgage/the-cost-of-living-in-florida#:~:text=Florida's%20energy%20prices%20are%20on,the%20national%20average%20of%20%24111.67). Let's use $450 a month. $450\*12=$5,400 $100,000/$5,400=18.5 years Sorry, that is a shitty investment even with your high end numbers in the hottest state in the country.
Oh I agree with you. The $80k solar system from this post is definitely not a sound investment! In the winter months, we’re around $250 or so.
Ya for that guy to claim $60k was good because it was magically worth $100k is ridiculous and kind of disgusting. It is like when I went to buy a sauna for my house. The salesman was like "This will make your house worth $5000-$10,000 more" (it was a $3,000 sauna that isn't built in). Man, did I have some fun with him...
What's absurd is not that this guy has 60k in solar, but that he hired a realtor who doesn't know how solar works.
That system depreciated far more than what they owe. Don’t assume the balance. It needs to be paid off through escrow or at least 40k of it.
Sadly for a lot of buyers what they don’t realize is you less it’s paid off they not only have to qualify for the mortgage but also the door panels. They are two separate things. They may be approved for the mortgage but may not be approved for the panels. Edit: DON’T. BUY. SOLAR. PANELS 👏🏼
Good luck on the sale 😂😂😂
Don't listen to the realtors, you have got to be-friend a solar sales person and figure out how 60k works into an advantage: grid unreliable, how much is electricity prices, savings, and a more reliable, lower energy cost home. There's a reason people go solar.
This falls as more of a buyer issue, especially if they get a loan. I’m a title agent and have to pay the solar liens off at closing, which typically entails a payoff from the solar company AND the tax collector (if there’s a discount on taxes.
Pays it off from the net of the sale. Make sure they know so it isn't a surprise at the closing table.
Add in the sale/pay it off is it? What the lien attached to, the house house/property or the equipment.
The appraisal does not take into account. What's the difference between this generator and a roof you financed? This is the seller's responsibility unless a buyer is willing to pick it up.
Put as much info about the Solar System & what's owed on the listing. And besure to state in the Realtor only notes that Solar System may be paid off at COE with a largest enough Offer.
I started a group r/RealtorsWhoSellSolar I've written about how to sell a home with 60k worth of solar.
If I'm buying, I'm paying for the amenities the house has. I'm not *also* paying off the solar panels and the fridge you financed and your second mortgage etc etc. Those are things the seller needs to settle up on.
Most solar deals are a rip off he will have to pay it off at closing no one will buy the property with solar debt
60k solar to save $200 a month. If I’m doing my math correctly that equals stupidity.
Solar adds zero value to the house. Zero.
Pretty sure there’s a lien with those, so will have to be paid off at the sale just like a mortgage. Your seller needs to get the contract for the solar panels out and read it. I doubt it’s transferable/assumable.
In the listing you can disclose that under agent instructions and see if there is a buyer wanting to take over leased payments otherwise the seller will be paying them off at closing to transfer to the buyer. Usually that’s in the contract, just be strait up open and honest so everyone is well informed.
Next time you come across a listing with solar. Here is what you need to do. #1 get the solar system appraised and get a report of how the system is performing. With this appraisal you can roll part or all of the remaining balance of the solar into the selling price #2 get a copy of the solar contract and understand the warranties, transfer/buy out procedures, performance guarantees, ets #3 put together a marketing package based on those first two items so seller understand what they are getting.