A primer presented by instructor mark buhler.
Appraisal adjustments for solar panels.
If you own the solar panels on the roof of your home you only need to meet the standard eligibility requirements in order for fannie mae to purchase or securitize a mortgage on your property the same requirements that would apply even if you had no.
Buhler has over 25 years of appraisal experience and specializes in the valuation of energy efficient homes which are increasingly.
A valuable investment the upfront cost for solar panels can be steep and they may not be a viable solution for people in every part of the country.
Engaging a skilled appraiser that understands solar photovoltaics and how to value them is a smart move before the purchase.
Factoring solar power generation into an appraisal can be difficult because the technology is changing rapidly and the appraiser must analyze how solar power affects a home s final value.
So if you save 2000 on your rooftop solar panels system your home will appreciate by 40 000.
16 its updated selling guide for single family homes which includes an adjustment to comparable sales that eliminated the 15 percent net and 25 percent gross adjustment guidelines.
The appraiser emphasized that solar panels are a new arena for appraisers the issue simply hasn t been around long enough for there to be a consensus on how to value the addition of the panels.
Fannie mae released on dec.
An example that i see used a bunch is taking the amount of estimated savings in a year and times it by 20.
It also clarified its policy on the valuation of homes with solar panels.
You need to protect yourself from dishonest solar contractors who will overestimate the value of your solar panel system.
Financed panels as fixture to real estate may consider the solar panels in the value of the property based on standard.
The skilled appraiser can assist the homeowner in understanding the size of system they need to produce the energy they use.
I had a solar panel company come to my house a few months ago it would cost 21k to buy with the tax credit it would be 14k out of pocket even if it drops my electricity bill 50 per month that is approx 600 per year it will take 15 years just to recoup the cost and if you remember that good old class about the future value of a dollar.
With regard to solar the important point to take away from fannie mae s guide is this.
For an overview of solar panels methods of valuation and challenges of appraising properties with solar check out our recorded webinar appraising solar panels.
