Does Solar Panel Add To An Appraisal

When appraising a home with owned solar panels or other energy efficient features there are several additional factors which determine how much value is added.

Does solar panel add to an appraisal.

On average solar panels raise a home s value by 4 1 across the u s according to a new zillow analysis of homes across the country that s a boost of 9 274 on a 226 300 home according to the study. After all they save homeowners a ton of money right. Of course the appraiser must consider several factors and follow two generally recognized guidelines on how to attribute the value correctly within appraisal report. Many appraisers are taking the position that there is no added value and perhaps some diminished value with leased solar panels because the buyer must assume the lease.

How many appraisers have boosted for solar on leased and non transferable systems. Installing solar panels in a home not only helps to reduce current monthly utility bills. If you ve seen a rise in solar panels in your area consider taking the first step toward competency in the valuation of this energy efficient feature of real estate. As a real estate appraiser i get asked all the time do solar panels photovoltaic add value to your home the answer is a definitive yes.

Determining the value of solar panels is an issue that has many appraisers asking questions. Find everything you need to know about solar panels and solar installation costs. However if you do not own your panels whatever value that they may add cannot be included for an fha assessment. While owning a solar system may add value to your home it would not be wise to expect a dollar for dollar increase based on the cost of the system project.

The only solar system which deserves a boost in the appraisal analysis is an owned system. Solar panels and green homes are becoming increasingly more common in the marketplace. Says real estate agent aaron zapata of inman according to fha and fannie mae whether solar panels add value or are viewed as a liability is still unclear. Unlike other features energy saving and green elements particularly solar panels will contribute a different amount to a home s value.

The new york times reported that fannie mae advised appraisers to evaluate a home s solar panel system to discern how much it should add to the house s value. It can potentially increase the home s value by up to 4 1 more than comparable homes with no solar panels. If you own a home with a solar system the fha requires to your benefit that its value be assessed and added to the total appraisal value of your home when you want to sell it. The appraiser emphasized that solar panels are a new arena for appraisers the issue simply hasn t been around long enough for there to be a consensus on how to value the addition of the panels.