Solar panels can be a great addition to a home, helping to save electricity expenses and the environment. However, it can create complications when it comes to selling your home. This may not be something most homeowners think about when opting to get solar panels, but it should be. Here are a few things you should know about selling a home with solar panels.
Buyers Might Not Like Them
Your future home buyers might not necessarily like the fact that you have solar panels installed. Some find the panels a bit ugly, especially if they are on a front-facing roof surface. Others may not want the hassle of dealing with the solar company. Lastly, some may not want to inherit the risks of the solar panel lease. No matter the reason, it’s important to acknowledge that solar panels may be viewed as a negative instead of a positive.
Mortgage Companies Might Not Approve
Since solar panels are installed on a property and include a lease, mortgage companies will want to review that information before approving the loan. If there’s a possible lien on the property, this could be an issue for some lenders. Additionally, the cost of the lease might be included in the buyer’s debt for qualification purposes. In some cases, this could also be problematic. Thus, selling a home with solar panels is not as straightforward as selling one without.
It May Take More Time to Close
It will take extra time for potential buyers to review the solar panel lease and decide if they wish to inherit that lease. Lenders will need time to review the information as well. Because of this, we can expect that selling a home with solar panels will require more time before closing. A quick closing may not be possible.
Summary of Selling a Home with Solar Panels
As you can see, selling a home with solar panels can be complicated. In some cases, even if a buyer assumes your lease, you are still left responsible to some extent. It’s also important to think about what happens if a buyer opts not to assume the solar lease. What options are available to you as a seller? Will you incur costs for having the solar panels removed? These are questions that you should consider when reviewing a solar agreement to begin with. If you already have the panels installed, review the agreement before listing your home for sale. This can minimize unexpected issues later on in the process.
