Unable to find comps which have "owned" solar panels. What to do?

[George Hatch]

All true. But the most relevant part of your comment is "It's the appraiser's job to quantify to what extent those purchase decisions are impacted".

That takes market data. Identifying that data is the first step and comes prior to deciding how to analyze.

In an V=I/R analysis, and everything else about the properties being equal,

A contributory for solar for a home in El Paso at $15,000 is the result of one rate while the contributory for a similar home in Austin at $25,000 is the result of a different rate, and in each appraisal it will be up to the appraiser to identify those rates. And refrain from using a published Texas Amalgemated Median rate that might fall somewhere in between.

 

[J Grant]

The majority of appraisers who have been tracking solar vs non solar sales are saying many of the prices or results of RE agent input is buyers are not paying any more for it. Which is a bit surprising one might expect at least a nominal amount, 5k -10 - but the market reacts how it reacts and each case can differ. A newer system or a house otherwise green energy might return more.

The thing to keep in mind, are most buyers asking for solar panels as a must have feature when they home buy ? Probably not - and if a buyer wants solar panels, they can get them put on to any house they buy at any time, with a phone call to the many eager to come out solar panel companies.

 

[George Hatch]

Yeah but what's true today may be very different a couple years from now. And that's going to happen sooner in some markets than in others, even within the same region. It is my assumption these systems are going to increasingly return higher resale values as we go. Particularly in the Sunbelt areas. Eventually the difference between the haves vs otherwise similar have-nots may exceed the costs.

 

[J Grant]

Yeah but what's true today may be very different a couple years from now. And that's going to happen sooner in some markets than in others, even within the same region. It is my assumption these systems are going to increasingly return higher resale values as we go. Particularly in the Sunbelt areas. Eventually the difference between the haves vs otherwise similar have-nots may exceed the costs.

I agree. esp as the systems become better - though new systems are in the running now too including solar roof tiles, they are more expensive but part of the house and look great -I believe at some (hopefully near future ) time there will be one or more revolutionary breakthroughs in alt and renewable energy , it has happened before in history where human ingenuity solves a previously insurmountable problem _ today's lt energy is expected to drive yesterday's huge consumption motors or systems - I read a scientist is developing a tiny motor the width of a hair - look at how computers shrank from huge behemoths down to affordable tablets and small smart phones - eventually the big clunky not efficient solar panels and the systems they drive will be replaced by a small amazing replacement... wish I could be the one to invent it but will take the next genius and it always seems to come out of nowhere when it happens

 

[JTip]

I've NEVER had a $400 electric bill........wow

 

[George Hatch]

Just think, if you paid $40k for an install 10 years ago but the current costs are $25k, your break even point may still come *after* the break even points of the current buyers.

 

[Cob]

What is required for solar panels?

selling-guide.fanniemae.com

 

[Nathan Slaman]

I'm in a market where the overwhelming majority of solar panels on homes are leased and are therefore not given any value in the appraisal. I am appraising a property in which the homeowner owns the solar panels and am unable to find any comps in which the solar panels are owned. I see my best option as explaining the situation in the report and stating that comps with "owned" solar could not be located and that the contributory value of the solar panels is deemed to be negligible since the majority of properties in the subject's marketing area which have solar panels actually lease them. Any suggestions on how to properly phrase this are greatly appreciated.

I state in the report that due to a lack of comparables with owned solar panels a quantative adjustment can not be supported. In lieu of a quantative adjustment qualative consideration is being given to the solar panels in the formulation of value. I state that solar panels can range from $15 to $50k depending on the amount of panels. Then I weight my value toward the higher end of the range.

I have talked to a few review appraisers about doing this and they agreed with it. One of our instructors in my state also told me to do it this way when you dont have a comparable with a similar ammenity and cannot support and adjustment.

 

[George Hatch]

I was talking to a SFR reviewer yesterday about this topic and they said that when someone says there are no owned solar in the area they take a screengrab of the overhead and start circling properties with solar installs, and tell the appraiser to check their respective sales histories.

 

[J Grant]

I was talking to a SFR reviewer yesterday about this topic and they said that when someone says there are no owned solar in the area they take a screengrab of the overhead and start circling properties with solar installs, and tell the appraiser to check their respective sales histories.

, how does this omnipotent reviewer know if any of the panels on the overhead were bought and installed AFTER the sale , or if the solar panels are leased ?

Like what appraiser has the time or long enough turn time and fee to find out, which is which and then check the swales history of all kinds of random area sales ?

$500 for the appraisal and $2000 and extra month turn time for the solar panel research