In today’s market, eco-friendly features like solar panels are increasingly popular among homeowners. Solar panels not only contribute to a greener planet but also promise potential energy savings. However, when it comes to selling your home, having solar panels can be a double-edged sword. Let’s explore the factors you need to consider if you’re selling a home with solar panels in Utah and Salt Lake Counties.
Solar Panels: Do They Add Value?
A common misconception is that solar panels automatically increase the value of a home. While they can be an attractive feature for energy-conscious buyers, they don’t necessarily add monetary value to your property. The key factors that determine whether solar panels add value include:
- Comparable Sales: If your neighborhood has enough comparable homes with solar panels that have sold for higher prices, this could positively influence your home’s value. However, these comparable homes need to be of similar size, within a one-mile radius, and sold within the last six months for an accurate appraisal.
- Appraisal Challenges: Appraisers must use similar homes in the area to justify the added value. If there aren’t enough comparable sales, the solar panels may not significantly impact the appraised value.
The Financial Aspect of Solar Panels
One of the critical considerations when selling a home with solar panels is the financial arrangement:
- Owned vs. Leased Panels: If your solar panels are fully paid off and owned outright, they might be more appealing to buyers. Owned panels can enhance the marketability of your home, even if they don’t significantly boost the appraisal value.
- Solar Loans: If the solar panels are financed through a loan, it usually presents a challenge. Buyers may be reluctant to take on an additional financial obligation, potentially making your home less attractive. The best approach is to plan on paying off the solar loan with the proceeds from the sale. This removes the burden from the new owner and simplifies the transaction.
Strategic Planning for Selling
To maximize the benefits of your solar panels and avoid potential pitfalls, consider these strategies:
- Professional Appraisal: One major benefit we provide for our clients is the ability to contest an appraisal if it comes in short from where it should. Rather than just lowering your contract price, we have successfully helped get appraisers to increase their appraisals based off presenting additional data.
- Highlight Energy Savings: We emphasize potential energy savings to buyers by providing utility bills to showcase reduced energy costs.
- Clear Financial Terms: We make it clear whether the solar panels are owned or financed and ensure transparency about any plan to pay off the loan with sale proceeds.
- Staging and Marketing: Our comprehensive marketing plan helps put the focus on the benefits of solar ownership, this step ensures your home stands out and attracts the right buyers.
Conclusion
Selling a home with solar panels requires careful consideration and strategic planning. While solar panels can be a selling point, they don’t always add significant value, and financing arrangements can complicate the process. At Seasons Real Estate, we understand the nuances of selling homes with unique features. Our goal is to help you get top dollar for your home by leveraging our expertise and comprehensive marketing plan.
If you’re considering selling your home with solar panels, contact us today. Our experienced team is here to guide you through the process, ensuring a smooth and successful sale.
Text 801-610-9843 to get started today!
