July 19, 2024

Ready to sell your home but wondering how those shiny solar panels on your roof might affect the process? Whether you’re basking in the glow of reduced utility bills or you’re still making payments on that solar loan, I’ve got you covered. Let’s dive into the best practices for selling your home with solar panels.

Getting Started

First things first, let’s shed some light on what you need to do to make your home’s solar setup a selling point rather than a stumbling block.

1. Gather Documentation

Before you list your home, ensure you have all the necessary documentation regarding your solar panels. This includes:

• Installation details and dates

• Warranty information

• Maintenance records

• Loan or lease agreements

2. Understand Your Solar Loan Situation

Are you still paying off your solar panels? Here are your options:

Option 1: Pay Off the Loan

Paying off the loan can make the sale smoother. Here’s why:

• Pros: Clear ownership of the panels makes your home more attractive. Buyers don’t have to worry about taking over a loan.

• Cons: You need to have enough funds available to pay off the loan before closing.

Option 2: Transfer the Loan to the New Buyer

Transferring the loan can be a bit more complex but still feasible.

• Pros: You don’t need to come up with a lump sum to pay off the loan. Buyers get the benefit of lower utility bills immediately.

• Cons: Not all buyers may qualify or be willing to take over the loan. It might limit your potential buyer pool.

Power Offset and Bill Savings: Shine a Light on Savings

Potential buyers will love to know how much they can save with your solar panels. Here’s what to share:

1. Power Offset

Provide data on how much of your home’s energy needs are met by the solar panels. This could be a percentage or the number of kilowatt-hours generated.

2. Utility Bill Savings

Show buyers the difference in your utility bills before and after installing the panels. Highlight average monthly savings and any other incentives you’ve received.

Step-by-Step Guide to Selling

1. Consult Your Solar Provider

If you have a solar loan, talk to your provider about transferring the loan to the new buyer. They can provide specific steps and requirements.

2. Market the Benefits

In your listings and showings, highlight the benefits of the solar panels:

• Reduced energy costs

• Eco-friendly living

• Potential increase in home value

3. Be Transparent

Honesty is the best policy. Make sure potential buyers are fully aware of the loan situation and what it entails.

4. Include Solar in the Appraisal

Ensure the appraiser includes the value of the solar panels in the home’s overall appraisal. This can positively impact the sale price.

5. Work with a Knowledgeable Real Estate Agent

A real estate agent familiar with solar panels can help navigate the complexities and market your home effectively.

Weighing the Pros and Cons

When deciding between paying off your loan or transferring it, consider the following:

Paying Off the Loan

• Pros: Simplifies the sale process, may increase buyer interest, avoids potential buyer qualification issues.

• Cons: Requires upfront funds, might impact your finances temporarily.

Transferring the Loan

• Pros: No need for upfront funds, allows you to continue benefiting from the panels until sale.

• Cons: May limit buyer pool, can complicate the sale process, potential buyers need to qualify for the loan.

Conclusion

Selling a home with solar panels can be a bright idea if approached correctly. Whether you pay off the loan or transfer it, transparency and proper documentation are key. Highlight the benefits of solar energy, and you’ll be well on your way to a successful sale.

Your partner in all things real estate,

Ally

Thinking about listing your home with solar panels and need help getting organized?! Set up a Real Estate Goals Consultation Here: Let's Get In Touch!