When you decided to go solar, you probably had visions of enjoying years of energy savings, reduced electric bills, and doing your part for the planet. However, it might take up to eight years for a solar panel system to recoup its initial cost, which is longer than the average stay in an American house.
It’s essential to keep in mind that if you choose to purchase or lease solar panels, you’ll be incurring a long-term responsibility that you will transfer to a future home buyer. Suppose you can find buyers in your area who see solar panels as an asset rather than a liability. In that case, you may discover that installing solar panels increases your home’s value and returns on investment.
Although you’re aware that solar panels could raise your property’s market value, you might be concerned that having solar panels installed could make your home more challenging to sell.
It’s a relief to know that difficult doesn’t automatically imply impossible. In reality, it might be less difficult than you imagine. Learn about the ins and outs of selling a home equipped with solar panels by reading this helpful guide on how to sell a house with solar panels.
Do Solar Panels Make It Easier Or Harder To Sell Your Home?
Can you sell your house with solar panels? Yes! As the expense of solar panels has steadily dropped and their efficiency has continually risen, they have become selling points to homeowners nationwide. Since then, the national real estate market has seen higher listing prices and shorter periods on the market for solar-powered properties compared to their non-solar counterparts.
Selling A House With Owned Solar Panels
Having no outstanding loans or payments on your solar panels is the best case situation when trying to sell your home. Once paid for, solar panels may be transferred to the new homeowner without involving any third parties. Furthermore, buyers are often ready to pay a premium for a home with solar panels rather than leasing them. The entire process is relatively simple, assuming they have been well-maintained by the home seller.
You’ll need to pay off any loans on the solar panels before the home sale can go through. You have the option of doing this before or as part of the contract. It would be best if you did this to avoid a possible lien on the property before it is paid off.
Selling A House With Leased Or Financed Solar Panels
Buyer Could Take Over The Lease
If you’re selling a house with financed solar panels, your lender will likely be able to assist you in transferring the solar loan to the new owner. But your ability to sell is contingent on the kind of loan you obtained, notably whether or not it was secured.
You must pay off any secured loans used to purchase the solar panels before you can sell your house. If you financed the purchase of your solar energy system using an unsecured loan, you would not be required to pay off the debt before selling your home.
You Could Be Stuck On The Lease
A solar panel lease may create more problems when selling your home than a solar loan. This is because the solar panel infrastructure belongs to the solar provider and not you. Because of this, selling a house with a solar lease requires a simultaneous sale of both the residence and the lease. You may either pay off the rest of your lease or attempt to find a buyer prepared to assume the lease and monthly payments.
One condition of transferring a lease is that the buyer must satisfy specific credit requirements before most solar businesses agree to transfer the lease. It may not be a problem if they can afford to purchase a property, but it’s wise to double-check.
What To Do If Your House Won’t Sell
Is it harder to sell a house with solar panels? Solar panels add complexity to the process of selling a house. Buyers may be reluctant to purchase due to concerns about the care and repair required in owning a home with solar panels, especially if they are unaware of the many benefits of solar panels, such as cutting down on energy costs and eligibility for tax credits.
You may have trouble finding a home buyer if the real estate agent showing it to them is unaware of or unwilling to discuss the many advantages of installing a solar energy system. Inability to present paperwork on your solar panel system might complicate the selling procedure, causing you to forego any additional value your solar panels may have brought.
If your home’s appraisal isn’t up to par, prospective buyers may not be convinced that the extra cost of solar panels justifies the higher price tag. Leased solar panels may put potential buyers off since the solar panels remain the property of the solar company for the lease duration. Transferring a solar lease might be more complicated since the leasing company often must approve the transfer.
Consider the possibility of working with a real estate investor such as Assemble Houston as an alternative. If it’s challenging selling your property via conventional means, turn to real estate investors who will purchase your residence in its current condition for a reasonable price. Reach out to Assemble Houston if you are prepared to receive a cash offer for your property.