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.
Appraisal adjustments for solar panels.
Sales comparison is one method that appraisers use in order to determine an adjustment but there are other methods.
Adomatis thinks she was in the dark on solar because appraisers real estate agents and lenders got left out of the green movement.
For an overview of solar panels methods of valuation and challenges of appraising properties with solar check out our recorded webinar appraising solar panels.
16 its updated selling guide for single family homes which includes an adjustment to comparable sales that eliminated the 15 percent net and 25 percent gross adjustment guidelines.
Today that same system will cost 30 000 and the most important thing to consider is that your home will not appreciate more the cost of the system you install.
This additional financial commitment makes it harder to market and sell the property.
Appraisers must compare energy efficient features of the subject property to those of comparable properties in the sales.
Fannie mae adjusts comparable sales guidelines solar policy fannie mae released on dec.
I had a solar panel company come to my house a few months ago it would cost 21k to buy with the tax credit it would be 14k out of pocket even if it drops my electricity bill 50 per month that is approx 600 per year it will take 15 years just to recoup the cost and if you remember that good old class about the future value of a dollar.
The appraisal institute residential green and energy efficient addendum solar page can be attached to the mls upon listing the property used by appraisers to gather the specifics needed to value the system.
Grm cost approach survey of builders and nevin s multiplier that appraiser s can use to determine an adjustment.
She recently wrote a book called residential green valuation tools that includes tips for appraising solar pv.
It also clarified its policy on the valuation of homes with solar panels.
After reviewing the appraisal i determined that there was a 15 000 positive adjustment for a solar retrofit that should have been applied.
Section of the appraisal report.
Adomatis has since become an appraisal authority on solar and green homes.
Unlike other features energy saving and green elements particularly solar panels will contribute a different amount to a home s value.
A primer presented by instructor mark buhler.
For owned or financed solar panels must comply with energy efficiency improvementsin selling guide b4 1 3 05 improvements.
The skilled appraiser will take extra steps to understand the market s attitude toward solar.
Whether the solar panels are leased and owned also may affect the appraisal.
