How Much Does Solar Add in Value?
Ask most real estate agents in the Phoenix area and these real estate agents will say, “Solar does not add value”, “Solar decreases the value and makes your home hard to sell”, or even “If you are lucky, expect a $1,000 or so in extra value but no more.” Yet with solar home sales in Phoenix topping 5% and more of the total home sales each month, savvy home owners are taking prudent steps to make sure they get maximum value for their solar homes.
Having been in the real estate industry for the last 25 years and focused on selling solar homes for over 11 years now, the simple answer is yes, solar can raise your home value IF you follow a few simple steps to make sure you get the most value out of your home when you sell it. With millions of dollars worth of solar transactions over that period, no two transactions are alike and no two homes are the same. I have found the one common denominator in all of these transactions is me, coming in with a lot of solar real estate experience, training on marketing and valuing solar homes, and insight on how to properly guide my solar home sellers to get the most value for their property.
How Much Does Solar Add to the Value of Your Home
In the past year, I have had homes sell for more than the area non-solar homes and in the same amount or even less time. There are several key steps that I take when listing a solar home to make sure that the solar panels add value to the home, including:
- Research the make, model, kW (and kWh) and efficiency of the solar equipment
- Analyze the true cost of energy production versus the aggregate amount of solar savings generated from the solar panels
- Have an independent third party certify the solar system (used for both sales marketing and the appraisal)
- Create a detailed broker price opinion of value based upon the home and its features in relation to non-solar home sales in the area
- Design solar specific marketing material to demonstrate and educate the buyer on the benefits and cost savings from the solar panels
- Require the buyer to hire a certified green appraiser that understands solar when having an appraisal done on the home
- Personally meeting the appraiser at the home during the appraisal to give them a detailed solar report that includes information about the solar system, energy production, cost off-sets and utility usage reports, form 820.05 Green and Energy Efficiency Addendum for the appraisal (filled out by an independent third party) and relevant comparable home sales data.
The key to getting full value for your solar panels is hiring the right solar real estate agent when you sell your home!
In my experience, most sellers do not fully understand the benefits or function of their solar panels on their roof. Now, imagine having home buyers come through their home that have had solar…and just telling them that it saves $100 a month (or whatever that figure may be). Who is guiding that seller and buyer to ensure that not only the buyer recognizes the value of the solar panels on the roof but also the third party professionals such as the home appraiser or mortgage lender that are basing financial calculations on the value of the solar home? You need an experienced and qualified solar real estate agent to guide you through the process. Otherwise, you are just a solar guinea pig training a real estate agent on the do’s and don’ts of how to sell a solar home.
With over tens of millions of solar real estate sold and millions more in regular real estate sold in the Phoenix area, I have helped many home owners realize higher equity returns on their solar with an average of $1.65 per watt (ranging from $1.10 a watt to $2.34 a watt, depending upon the size and age of the solar panels and inverter). No two solar homes are alike but I know I can help you too.
Give me a call at 480-888-1234 and let’s talk about getting the most value for your solar.