Large solar panels on the roof of subject property.

[gojira]

This is for a conventional refinance. I arrived at the property to do my inspection yesterday and got a pretty good surprise (see attached photo). This is in a semi-rural area of Oklahoma with absolutely no sales data with a similar feature. As a matter of fact, I've lived in this town all my life and I've never seen a home here with solar panels on the roof.

My question is as to whether you feel this would have a positive or negative effect on marketability. The home owner said it cut his electric costs by about 50%, which is an obvious plus, but damn those things are ugly, which is obviously negative. With no sales data to determine whether an adjustment is warranted, be it positive or negative, I'm not entirely sure what to do here. Give a cost to cure for removal of the panels and make no adjustments for the feature is my first thought. Any input is appreciated.

Y'all go easy on me, I'm a bit green and have never dealt with anything quite like this before.

inb4 "you're not qualified to accept this assignment"

 

[Randolph Kinney]

Solar panels are becoming common in southern California, especially inland. Some builders are offering solar panels as an option.

They do add value, here.

What also is becoming common is solar power purchase contracts and solar lease contracts.

The state of California has its nose into forcing solar energy.

see an example here:

 

[Mountain Man]

Did the home owner buy the system, or is it leased? There are companies out there that will install the system costing the owner almost nothing, then the owner buys power from the company that installed the system. You need to know first if they are owned or leased. If owned, the easiest way to support an adjustment is to discount the savings over 5 to 10 years. Buyers may appreciate the savings, but they won't pay full retail to achieve such.

 

[gojira]

The panels are owned by the home owner.

Am I the only one who thinks the negative effect on marketability due to the unaesthetic nature of the panels, and their location facing the street, might be as great or greater than the positive effect due to the decreased energy costs? I'm just imagining a realtor showing my girlfriend and I around house shopping and we pull up to this house. I know without a doubt my girlfriend would say "NEXT" based on the looks of the panels alone. Obviously this is just an example and I'm not basing an adjustment or lack of an adjustment on what my girlfriend would want. Just trying to think about a typical buyer in this marketing area.

 

[Mountain Man]

Some would pass, but some would love it... especially an engineer geek. Being on a metal roof with an "industrial look" anyway, I don't think it's aesthetically repulsive.

But, I can see the stips coming already... please re-take front view to not show panels.

 

[gojira]

Some would pass, but some would love it... especially an engineer geek. Being on a metal roof with an "industrial look" anyway, I don't think it's aesthetically repulsive.

But, I can see the stips coming already... please re-take front view to not show panels.

Lol I'm sure I'll get some revision requests on this one no matter what I do. I guess you're right about it being a huge turn off for some buyers and a huge bonus for others.

 

[Pilgrum]

Lol I'm sure I'll get some revision requests on this one no matter what I do. I guess you're right about it being a huge turn off for some buyers and a huge bonus for others.

Revision requests? What does that mean? The AMC will want you to revise your report to echo their opinion? HMMPH!

 

[Don Clark]

Fairly common in my market. Not a big energy saver since they usually only supplement a hot water system. I would find any comparable with any odd feature to it, if there are any such sales. If not, list it and leave it alone.

I am dealing with a similar issue. 1940's house tottaly rehabilitated inside and out, new kitchen, new bathrooms, new everything. But, house is next door to a cemetary. Positive----quiet neighbors. Negative----cemetary with some increased traffic, parking on street for visitors, etc.

While on active duty I lived in base housing in Quantico, Virginia next door to a cemetary with head stones dating back to the 1600's and some recent ones. Best neighbors I have every had. Much better than the nut job next door whose wife kept complaing to the Provost Marshall every time one of her kids did not get their way in the playground.

To me, the solar panels would be a wash. No effect on value.

 

[Lee Lansford]

I can't tell you whether or not the solar panels contribute to market value, but, you do need to address the cost and benefits of the system and how this does--or, does not--contribute to MV.

 

[William K]

As Lee has already pointed out, you can have a Cost benefit, however there is a significant chance that there is no added Market Value.