Adding solar power to your home is an excellent way to save thousands each year through lowered energy bills and big tax incentives. However, the inclusion of solar panels in a home can affect a real estate transaction in a few ways. I’m here today with Ben Benjamin, assistant vice president of Ticor Title, who will tell us all about how solar panels affect the home buying and selling processes.
There are numerous ways to finance the purchase of solar panels. One way is to assess the price on top of the property taxes. This will cause your property taxes to be higher. If you are purchasing a home that has solar panels that were financed this way, be sure to let your lender know as this may affect your qualifying ratios and will increase your property taxes.
Another way to finance the purchase of solar panels is through a traditional loan, where the lender files a second or third trust deed on the property. If you are purchasing a home with this type of financing in place, be sure to know the terms of the loan and what your monthly payments will be. Additionally, your lender will need to work with the solar financing company to ensure that the loans are properly recorded on the property to prevent any delays in the closing.
As solar power continues to rise in popularity, more and more lenders are becoming familiar with the process; some lenders even have entire departments that deal solely with solar panels. Regardless, it’s good to start the conversation about solar power early.
If you’re thinking of selling a home that already has solar panels, make sure your Realtor knows how to market its great benefits.
I’d like to thank Ben for giving us some insight into how solar panels affect real estate transactions. If you are thinking of buying or selling a home, have any questions, or need more information, feel free to reach out to me. I look forward to hearing from you soon.