All Forum Posts by: Zachary Barton

@Account Closed fantastic work, thanks for educating us! 

@Andrew Smith From that link, "Fannie Mae will purchase or securitize a mortgage loan on a property with solar panels. If the property owner is the owner of the solar panels, standard eligibility requirements apply (for example, appraisal, insurance, and title)."

That language says they will lend on a home with solar panels, as long as the solar panels are owned out right. Otherwise there are additional criteria for loan qualification.

However, that does not mean that the solar panels will increase the market value of the home. In fact, as per the recent Realty Line article mentioned above, "Most appraisers are not going to incorporate the initial cost of the system, depreciation and potential energy savings over the remaining expected useful life of the system to come up with value added to the property by having solar panels". So yes, the bank will appraise and lend on a home with solar panels, BUT the market alone will dictate the "value" of those panels.

Right now, the Central Texas market places no additional value on homes with solar panels. Considering Cali's mandate, I think your absolutely right, overtime homes in your market with solar panels will be considered more valuable then those without. 

-Zak

@Andrew Smith Have you been able to find anything from Fannie/Freddie that shows how an appraiser should adjust for the addition of solar panels (@Henri Meli)? To the best of my knowledge, and as per my previous post on this thread, the solar panels will not add any value to the homes base price. However, appraisers will consider other recently sold properties with solar panels.

So, the only way solar panels will add additional profit to your net is if buyers are willing to bring extra cash to the table (above the appraised value) to close on the home. If that is the norm in your area, then over time homes with solar panels with begin to be viewed as more valuable. But if the comps in the area don't suggest higher values for homes with solar panels you’re not going to be able to convince an appraiser the home is worth more.

I think that over time this may change especially in TX where the summer heat is brutal and energy bills are high. Buyers may begin to see the added value in having solar panels (especially with long or lifetime warranties) and may be more willing to pay extra for a home that comes equipped with them.

Mia Meyers

Aaron Williams

Donna Fox

Just PM'ed you their details! 

Hey @Account Closed What are you putting into the deals to attain cashflow? How are you finding your deals?

@Account Closed Please keep us updated! With the affordability crisis in Austin this may be well overdue. 

This months Realty Line issue (for Austin Realtors - can be found by googling Realty Line Issuu - page 22) published an article that says, "Most appraisers are not going to incorporate the initial cost of the system, depreciation and potential energy savings over the remaining expected useful life of the system to come up with value added to the property by having solar panels". Appraisers will consider comps of properties that have solar panels. Just don't expect for those comps to be much higher that similar properties that have sold without panels.

So as an ethical, money saving venture, you may want to consider if for your personal property but its not profitable. At least not yet...  

Keep'm coming! 

Hello my fellow real estate pros! I am in search of an equity partner (around $200,000) with new build experience assist me with the new constructions of three condos on a lot in the down town area. The property is under contract and ready to close asap. Our projections show a 33% return and over 100% cash on cash so its a very tasty, well vetted deal.

Hello my fellow real estate pros! I am in search of an equity partner (around $200,000) with new build experience assist me with the new constructions of three condos on a lot in the down town area. The property is under contract and ready to close asap. Our projections show a 33% return and over 100% cash on cash so its a very tasty, well vetted deal.