How solar panels can impact real estate deals

TAMPA, Fla. (WFLA ) — Tampa Bay-area real estate agents and Florida’s CFO are sounding the alarm about solar panels impacting the state’s real estate market.

They say the panels are having an unexpected consequence on home sellers — and home buyers — who many not qualify to buy the home because of the panels.

Florida Chief Financial Officer Jimmy Patronis said solar panel popularity has skyrocketed and works out for some, but that when some homeowners need to sell their houses, they are in for an unpleasant surprise.

“What’s very concerning to me about solar is that you’re putting a depreciating asset on your house that over time loses efficiency that penetrates the integrity of your roof,” he said.

The cost of the solar is often a second mortgage that could be an additional $80,000 or more, he said, and comes with a lien on the house.

Realtor Ryan Kirby, of Kirb Appeal Homes at Keller Williams in St. Petersburg, said the seller has to either pay that off before selling or transfer the loan to the buyer. In many cases, he said, the buyer may not be willing or may not qualify for the extra loan amount.

“In today’s market, buyers have so many different variables that they’re trying to deal with,” Kirby said. “Increase in food, insurance, increase in homeowner’s insurance, you’ve got taxes going up. So when a lender is pulling all of your data to make sure you’re going to be in a financially secure position, it can completely throw your income-to-debt ratio off, which can ultimately limit you from some homes with panels.”

He said solar is great option for some, but homeowners need to do their homework before investing in panels.

“Over time, does that financial benefit reward you long term?” Kirby said.

Patronis said answering this question is particularly important for senior citizens.

“Now you’re telling somebody on a fixed income that now they want to downsize, maybe they want to move into something that’s assisted living, now this investment that sounded great five years ago is going to wipe out your entire savings because you got to pay it off in order to move out of your house,” Patronis said.

Another concern is whether the house appraises high enough to include the cost of the solar loan.

Experts recommend you seek out an appraiser with experience in solar value, but keep in mind the appraiser is chosen by the bank, and the lender may not consider your independent appraisal.

Also, Patronis added, check with your insurance carrier to make sure they cover solar panels and make sure the panels don’t void any warranty left on the roof.

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