Solar Panel Adjustment Lack of Data

[shrubberyvaluation]

Which sale has the solar panels in my attachment below?

I typically do this when I run into this situation. Subject has SP's but no comps with "owned" panels. I'll find a recent sale with owned panels and it becomes my subject property to derive a percentage (if any) of the amenity from comparable sales similar to my new subject "in the immediate market area of my true subject" with solar panels.

As you can see from my attachment, all sales are equal in lot size & bed & bath count. All sales are very similar in age and GLA. What this very small sample shows me is a softening of the market since May (which would need to be determined from a larger data set), not that the owned solar panels bring in a discernable amount in comparison to like sales.

So, I'm in agreement with Glen and another poster whom stated you're appraising the property as a whole and not 1 singular amenity. I'll comment on what I've done in the addendum to satisfy the pesky underwriter whom is concerned about the contributory value of the panels (in this case, none). Sometimes, I'll reconcile to the upper end of the adjusted range to give a nod to the panels depending on how complex/new the system is.

In this case, if I were the OP, I'd stick to determining the value of manufactured homes....which are a p.i.t.a.

BTW #2 has the solar panels....and, the longest D.O.M. so go figure...

I went through all the homes in the community from google earth that showed solar panels. Of the ones with listings none said they were owned, so I will explain. It is not that there is a lack of solar panels, but a lack of owned solar panels. I found owned solar panels in sales of homes in higher price ranges but I cannot be confident that the subject's community would react with the same dollar amount, however the predominance of leased solar panels in the community would suggest it is seen as beneficial and I will consider it in reconciliation. My reasoning is that if they are not uncommon in the community people leasing them would prefer to have them without having to pay a lease, it is just unknown how much a typical buyer would pay.

 

[Hondo]

Bright MLS has a search feature for Solar Panels Owned. You can search the entire county and back as far as you want, you can restrict it to MH if you want.

 

[shrubberyvaluation]

Bright MLS has a search feature for Solar Panels Owned. You can search the entire county and back as far as you want, you can restrict it to MH if you want.

View attachment 56576

I have done that, I have also searched under heating source as agents put it in differently. Also some agents just put solar panels in the description or some dont even mention them. Most agents probably don't even put them in as manufactured homes. The agent on the subject was telling the lender the subject is not a manufactured home. I appreciate the advice. Typically agents will be happy to advertise when panels are owned without financing, if it dose not say this typically it is financed or leased/PPE. When you start restricting searches in certain ways unfortunatly you miss market data. Missed a good comp before for a condo townhouse subject when the agent put it in as a detached non-condo. Now I take away some of the restrictions in my searches and know the streets that have the similar types of housing, also can tell when a listing stated as detached by the agent is selling way below other detached sales (it could also be a foreclosure or something but I look!) and its on a street with other townhouses or condos.

Edit: I did not mean to say it cannot find some, I did try this, but the results are limited.

 

[Vermonter]

I have done that, I have also searched under heating source as agents put it in differently. Also some agents just put solar panels in the description or some dont even mention them. Most agents probably don't even put them in as manufactured homes. The agent on the subject was telling the lender the subject is not a manufactured home

Same here and it's annoying. I have to search "Residential" with no basement to get most of the double wides. Single wides still end up under "Manufactured/Mobile". And none of them use the Solar tag.

 

[glenn walker]

Solar panel sales people use this method because they are selling a component.

The appraiser is trying to find out the contributory value ( if any) of the component to the whole.

Solar panels as a component can cost X $ to buy new . As a component it might delver X $ in future energy savings. But what will a buyer pay for its contributory value as part of the whole on the open market,, when the subject is competing against other houses that offer various amenities.?

Your subject has solar panels , but the other house has a pool and another house has a new kitchen. Which is the buyer more likely to want ? Which one is a buyer going to pay more for ? That is what makes appraisal complex - applying a rote formula while time consuming, is easy )

Agree 100% with your analysis

 

[Illuminati]

Bright MLS has a search feature for Solar Panels Owned. You can search the entire county and back as far as you want, you can restrict it to MH if you want.

View attachment 56576

IRES MLS has it too but lots of RE agents miss it.

Make sure to do a word search for "solar" in listing and broker comments in addition to the pv solar search... assuming your MLS has that feature.