The appraiser emphasized that solar panels are a new arena for appraisers the issue simply hasn t been around long enough for there to be a consensus on how to value the addition of the panels.
Appraisal adjustments for solar panels.
A valuable investment the upfront cost for solar panels can be steep and they may not be a viable solution for people in every part of the country.
Buhler has over 25 years of appraisal experience and specializes in the valuation of energy efficient homes which are increasingly.
I had a solar panel company come to my house a few months ago it would cost 21k to buy with the tax credit it would be 14k out of pocket even if it drops my electricity bill 50 per month that is approx 600 per year it will take 15 years just to recoup the cost and if you remember that good old class about the future value of a dollar.
It also clarified its policy on the valuation of homes with solar panels.
Whether the solar panels are leased and owned also may affect the appraisal.
Engaging a skilled appraiser that understands solar photovoltaics and how to value them is a smart move before the purchase.
If you own the solar panels on the roof of your home you only need to meet the standard eligibility requirements in order for fannie mae to purchase or securitize a mortgage on your property the same requirements that would apply even if you had no.
For an overview of solar panels methods of valuation and challenges of appraising properties with solar check out our recorded webinar appraising solar panels.
The skilled appraiser can assist the homeowner in understanding the size of system they need to produce the energy they use.
An example that i see used a bunch is taking the amount of estimated savings in a year and times it by 20.
16 its updated selling guide for single family homes which includes an adjustment to comparable sales that eliminated the 15 percent net and 25 percent gross adjustment guidelines.
With regard to solar the important point to take away from fannie mae s guide is this.
Financed panels as fixture to real estate may consider the solar panels in the value of the property based on standard.
Fannie mae released on dec.
If the solar panels are then the appraiser owned cash purchase consumer debt not collateralized by solar panels or debt paid off may include the solar panel value based on standard appraisal requirements.
Factoring solar power generation into an appraisal can be difficult because the technology is changing rapidly and the appraiser must analyze how solar power affects a home s final value.
Solar pv systems provide financial benefits and are financially feasible in some areas.
