If you’re thinking about adding solar to your home, do you know how much value it will add? Can you add a premium to your home’s price tag when it comes time to sell? I recently reviewed some sales data comparing homes with solar to similar homes without to see how things shake out in our market. You might be surprised by the answer and how many factors you need to consider. To learn more, watch this short video.
learn more: http://www.annemarieknowshomes.com/2017/06/13/does-solar-really-add-value-to-san-diego-homes/
Anne-Marie McCormick
Keller Williams Realty
CALBRE#: 01268960
Phone: 858-876-2663
Mobile: 619-857-7203
TRANSCRIPTION:
How much is solar worth when you sell your home? Can you factor it into the sales price?
To get an answer, I compared recent sales of homes that did and didn’t have solar that were similar and talked to some appraisers. To get a complete answer, you have to consider a number of factors.
First, is the solar equipment leased or owned? Buyers aren’t always favorable toward leased equipment because the price might have to be factored into their debt-to-income ratio. They also didn’t negotiate the terms of the lease and their usage could be very different from the previous owner who negotiated those terms.
You also have to consider the position, size, age, and efficiency of the panels. You might want to find out how much it will cost to remove and replace the panels if the roof needs to be replaced. When looking into the efficiency, look into net metering, which is when the owner receives a credit for a portion of the power generated by the panels.
Remember, solar equipment is like other remodels in that it won’t necessarily increase the value of your home dollar for dollar. If you want to take on this cost, make sure to have some time in the house so you can at least get some enjoyment from it.
The U.S. Department of Energy also did some research on solar in various markets, including San Diego. They found that the premium for a home with solar was just over $17,000 in 2015, about a 3.375% premium of the purchase price. If you have a home with solar, it’s to your advantage to keep track of your bills and usage so you can provide that info to prospective buyers.
If you have any questions about his topic, give me a call or send me an email. I’m happy to help!
Post time: Jun-18-2017