Financed PV system

[App601]

I am appraising a property with a financed PV system It is not leased it is owned but financed
Should it be included? But what about the debt?

 

[App601]

Owned with a Loan: If you (or the homeowner) own the panels but have an outstanding loan secured by a UCC-1 lien or a home equity line, the system adds value to the home. However, the remaining loan balance must be subtracted from the total equity

 

[TerryRohrer]

The debt is of no concern to an appraiser. If there is no UCC filing, solar panels attached to the real estate are typically considered an element of that real estate, and their contributory value must be addressed in an appraisal. The rest is the lender's problem.

 

[Mark K]

I am appraising a property with a financed PV system It is not leased it is owned but financed
Should it be included? But what about the debt?

What about the existing debt/mortgage on the home? Falls into the same category. Do you concern yourself about the mortgage balance/outstanding liens/judgements/taxes, etc.?

We don't appraise the equity in the real estate...we appraise the total package.

How the lender chooses to address liens on the real estate is their business.

 

[App601]

Owned with a Loan: If you (or the homeowner) own the panels but have an outstanding loan secured by a UCC-1 lien or a home equity line, the system adds value to the home. However, the remaining loan balance must be subtracted from the total equity

The solarpanels sre leased So they are not considered. And the Tesla is personal property So neither will be included.