How do Solar Panels affect a Real Estate Transaction?
I have noticed more and more homes are being sold with solar panels. Many Homeowners have acquired solar panel systems in order to reduce their electricity costs. While this is a desired approach for many homeowners, there are considerations when you are buying or selling a home with solar panels.
Solar panels can be owned outright, leased, or financed over a number of years. The best situation is if the solar panel system is owned outright without a lease or financing. If the seller has a balance due, then they should consider paying off the system at closing. The system typically remains with the home as a fixture and the buyer's purchase is a standard real estate transaction.
If the solar panel system is financed or leased, the seller may want to pass the loan or lease to the buyer. This may also be advantageous to the seller but could be a problem for the buyer. The buyer is in the process of obtaining a home loan and the financed or leased amount of the solar panels may be considered by their lender. This could affect the buyer's ability to get a loan approval as sometimes a solar panel system can add a couple of hundred dollars more of debt each month.
If you are considering the sale or purchase of a home that includes solar panels, be sure to understand your specific situation before signing a sales contract on the home.
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