Dayv Morgan: Selling with solar? Emphasize your savings

The abundant sunshine in Arizona makes rooftop solar panels an appealing feature for homebuyers considering a resale home.

Market indications show the value of solar panels is often less than sellers hope for when
selling, however. Out of the 2,415 Maricopa homes sold in the last 365 days (through June 12) through MLS, only 134 (5.5%) were listed with a solar energy system. About half of those were leased. Solar panels can be owned or leased.

Owned solar: In Arizona, the average cost of a solar panel installation ranges from $7,988 to $10,807, after the 26% federal solar tax credit, according to EnergySage.com. With a 5kW solar system generating about 8,760 kWh of solar energy annually, the average solar payback period is about 7 years.

When selling, a solar system will increase the sale price, depending on the size of the system, but generally about $1,000-$1,500 per kW.

Leased solar: These panels are not considered to be part of the home. In fact, a new owner of the home may have to qualify with the solar company. Buyers may need a higher credit score than even the mortgage company requires to assume the lease, which may still have years remaining. Homes with leased solar typically sell slower than homes with no solar and may even sell for less.

Furthermore, leased solar does not add value on the appraisal and lease payments may
increase annually. Also, with most lenders, it increases a buyer’s debt-to-income ratio and, thus, decreases a buyer’s purchasing power.

Tips for selling: Emphasize how much money you save. (Don’t be afraid to brag!) Provide buyers with written documentation on annual savings to help them understand kW and panel efficiency; they are more likely to see value if you can quantify the savings. Is it $100 per month? Three hundred? Include info in the MLS or leave a copy of recent electric bills on the kitchen counter.

Bottom line: Help buyers recognize the value over the long term.

Dayv Morgan is a Maricopa Realtor and owner of HomeSmart Success. He is a 15-year resident of the city.

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MaricopaHomeSmart.com

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