Buy a house with solar panel: Leased solar panels can complicate or kill a home sale
Rooftop solar panels are a rising, especially in Arizona as we had sunshine almost 365 days a year. Although studies have suggested that the addition of solar panels on a home can boost a home’s value. But sometimes those solar panels can sabotage a deal when it comes time to sell your home. Read on to see should you buy a house with solar panels.
Here are things to consider if you are planning to buy a home with solar panels already installed.
First thing first, you want to know how much saving will be with solar. You want to ask seller for utilities statement and compare the cost with and without solar panel. You want to justify the saving.
Then you need to consider whether the solar panel and system is leased or owned?
If the solar system is leased:
When the solar system is leased, home owner can get it installed on their house for little or no money down and pay in monthly installments. If the solar system is leased, review the contract.
Can the lease transferable?
If so, what’s the requirement and qualification? Most solar companies allow the existing lease to be transfer to new owner IF the new owner are qualified for the lease qualification.
How much the monthly lease repayment will be?
Most leased solar repayment can be ranging from 10 years to 20 years period. You want to make sure you are comfortable of re-paying the lease during the period. Keep in mind that, the lease repayment can be increased as years go by.
Check with your lender
You want to double check with lender whether the additional montly solar lease repayment will lower your debt-to-income ratio (DTI) to qualify for your mortgage. Some lenders will not consider the lease repayment as debt rather than utilities cost. So you want to double check with your lender, to ensure you still qualify for mortgage with the solar lease.
Check with solar company for warranty and coverage
If the solar system is leased, most of the time the solar company will cover the maintenance and repair cost. You want to make sure you are still covered after the transfer.
Consider hiring inspector
When you are buying a home with solar panel installed, consider to hire separate inspection to inspect whether the solar panel and system are installed properly and up to code. You want to make sure that the roof are still good and thrust are not being modified or anything.
If the solar system is owned:
Check the warranty and coverage
Check with the seller or solar company how is the warranty can coverage works out. What happen if the solar company went out of business, how it will affect the warranty and coverage.
Consider hiring inspector
Hire a separate inspector to inspect the solar panel system and installation are done properly and up to code.
Check your home owner insurance
When the solar panel and system is owned, most company will not insure it. Be sure your home owner insurance cover the solar panel and system.
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