Solar Panel Adjustment Lack of Data

[shrubberyvaluation]

Subject is a manufactured home in a community of manufactured homes (about 100 in the community). Manufactured homes are not common in the area and none are nearby except in this community. I did not find any sales with solar panels historically in the community and did not see any solar panels while inspecting comps from the street (of course they could be hidden). The solar panels are owned, no financing.

My gut tells me the market would value them somewhere between $0 and the savings of the life of the solar panels minus maintenance. Would it be reasonable to use paired sales data from non-manufactured homes in the area despite the lack of solar panels in this community. This community homes sells significantly less than other housing in the immediate area (due to being manufactured housing). Or would this not be reasonable due to the lack in the community? I imagine this would the best credible way I can derive an adjustment due to the lack of data in the community even if there could be differences due to different price points.

I looked at prior solar panel threads and could not find the answer to this. I did not agree with simply using cost or savings as it is not a reflection of the market. An informed buyer would want to pay less than their expected savings I would think. Of course there can be other motivations for those that want to be environmentally friendly.

 

[Dublin ohio]

Would it be reasonable to use paired sales data from non-manufactured homes in the area despite the lack of solar panels in this community. This community homes sells significantly less than other housing in the immediate area (due to being manufactured housing).

You could use a percentage adjustment. Is this in a manufactured home park or are they on individual owned sites.

 

[Charles West]

You are on the right track trying to derive a number from a neighboring development outside the small subdivision, then comparing overall values between the two to derive an adjustment.

 

[shrubberyvaluation]

You could use a percentage adjustment. Is this in a manufactured home park or are they on individual owned sites.

They have their owns lots.

 

[glenn walker]

Subject is a manufactured home in a community of manufactured homes (about 100 in the community). Manufactured homes are not common in the area and none are nearby except in this community. I did not find any sales with solar panels historically in the community and did not see any solar panels while inspecting comps from the street (of course they could be hidden). The solar panels are owned, no financing.

My gut tells me the market would value them somewhere between $0 and the savings of the life of the solar panels minus maintenance. Would it be reasonable to use paired sales data from non-manufactured homes in the area despite the lack of solar panels in this community. This community homes sells significantly less than other housing in the immediate area (due to being manufactured housing). Or would this not be reasonable due to the lack in the community? I imagine this would the best credible way I can derive an adjustment due to the lack of data in the community even if there could be differences due to different price points.

I looked at prior solar panel threads and could not find the answer to this. I did not agree with simply using cost or savings as it is not a reflection of the market. An informed buyer would want to pay less than their expected savings I would think. Of course there can be other motivations for those that want to be environmentally friendly.

There is no real answer--In general in those situations I will state in my report that I recognize there is a solar system but that I have no comparable sales with similar systems and therefore I made no line item adjustment was made but it was considered as a positive in my final opinion of market data. What you dont want to do is just make up a number because you can defend a no adjustment based on no comparable data but a made up one can get you into a corner.

 

[shrubberyvaluation]

There is no real answer--In general in those situations I will state in my report that I recognize there is a solar system but that I have no comparable sales with similar systems and therefore I made no line item adjustment was made but it was considered as a positive in my final opinion of market data. What you dont want to do is just make up a number because you can defend a no adjustment based on no comparable data but a made up one can get you into a corner.

Makes sense, I have adjusted as a line item in the past in other market areas where there was enough market data to do so.

 

[Carnivore]

Makes sense, I have adjusted as a line item in the past in other market areas where there was enough market data to do so.

Someone mention above about finding matched pairs(multiple but not necessarily like your subject) and derive a percentage difference and apply that to your subject comparable. Consider this for a moment; Don't worry to much about your matched pairs location.

TIP: Once you start collecting matched pairs keep them in a separate PV Panel Data folder for use down the road.

 

[George Hatch]

To expand on the other suggestions, if you can find solar panels on conventional construction of more/less comparable quality that might be about as close a proxy as you can get for your subject's market segment.

Also worth a comment that these installs are atypical for this market segment and that you were unable to identify another install in this project so that's why you had to go to using other market segments to develop your adjustment. You want your reader to get a taste of the pain you went to in order to develop your adjustment factor.

 

[DWiley]

Subject is a manufactured home in a community of manufactured homes (about 100 in the community). Manufactured homes are not common in the area and none are nearby except in this community. I did not find any sales with solar panels historically in the community and did not see any solar panels while inspecting comps from the street (of course they could be hidden). The solar panels are owned, no financing.

My gut tells me the market would value them somewhere between $0 and the savings of the life of the solar panels minus maintenance. Would it be reasonable to use paired sales data from non-manufactured homes in the area despite the lack of solar panels in this community. This community homes sells significantly less than other housing in the immediate area (due to being manufactured housing). Or would this not be reasonable due to the lack in the community? I imagine this would the best credible way I can derive an adjustment due to the lack of data in the community even if there could be differences due to different price points.

I looked at prior solar panel threads and could not find the answer to this. I did not agree with simply using cost or savings as it is not a reflection of the market. An informed buyer would want to pay less than their expected savings I would think. Of course there can be other motivations for those that want to be environmentally friendly.

Quick and simple tip: Using Google Earth you can see if you observe any panels on other homes in the immediate area.

When I worked at the AMC we once had an appraiser state in a report that no other homes in the area had solar panels and the lender responded with a Google Earth image with red circles around the (several) homes in the area with solar panels

 

[shrubberyvaluation]

Quick and simple tip: Using Google Earth you can see if you observe any panels on other homes in the immediate area.

When I worked at the AMC we once had an appraiser state in a report that no other homes in the area had solar panels and the lender responded with a Google Earth image with red circles around the (several) homes in the area with solar panels

It is a good idea, the trick sometimes is figuring out if they are leased, financed, or owned. This was one of the reasons I was paying attention in the community when I was driving around, so I could research if I found any. I would state I could not find any other owned solar panels based on readily available information (if this indeed is the case), I would not say they do not exist. Typically if the solar panels are owned without financing the agents will make it known in the listing. If the listing just says solar panels, most of the time they are not owned, and even when they say owned it could be financed.