If you are considering selling your current home, to either move up to a larger home or into a home in an area that better suits your current family needs, great news was just revealed.Last week,
Solar Panels Are Killing Real Estate Deals
Solar Panels are becoming more and more popular as an alternative to other types of heating and electric. Problem is that going Solar can be really expensive and the return on your investment can take 20 years to realize. But that is not the issue that is Killing Real Estate Sales.
Most people investing in Solar systems feel they are improving the value of their property and will reap a higher profit on resale. This is not necessarily the case and there are two reasons why.
Number 1 --- If you are Buying the Solar system outright, by paying the entire cost upfront or financing with a home equity loan, then you Own the system outright and can include it in the sale of your home. You might, or might not, recoup your cost for the Solar at the sale. Why? Improvements on systems like Solar are changing over time. Remember the original cell phones, televisions, satellite dishes? All of these went through extensive advancements over time and your new Solar System can take 20 years to realize a profit.
Number 2 --- The reason Solar systems are Killing Real Estate Sales is because of Leasing. Solar companies are offering Leasing as an option instead of paying all up front. Sounds good on the surface, but be wary if you are looking to move within the next 20 years. You sign a contract for 20 years of monthly payments to Lease the Solar system. Then things change and you decide to sell. Well, you could end up paying off the Lease and removing the Solar system. Why would the Buyers not want it? Remember cell phones, tv's & satellite dishes? Solar systems are going to improve also and may be cheaper and more efficient. If the buyer decides to take over the payments, then the sale could blow up because of the buyers qualification on their mortgage. The buyers must now qualify with this additional monthly payment and it might throw them over the limit and be denied the mortgage to purchase.
Not to say, don't Buy a Solar System, just buy it for your own requirements and if you make money on it, good, but don't count on it.
Hope this helps.
Kathy McKinney, Realtor
Platinum First Realty, 708 Main Street, Harleysville, PA 19438
Office 264-647-9800 ext 412
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