Solar panels have been a hot item in the Phoenix housing market over the last few years. Companies are offering both Leases and purchases of Solar Panels for your home and promote major savings to your electric bill. When you lease solar panels instead of purchasing outright, the solar company files for the Government rebate. They push this option over purchasing every time because of that Government rebate. When you purchase solar panels yourself, you get the Government rebate directly. Also, when you lease solar panels, the solar company files a Mechanic's Lien against your property for the life of the loan. This lien will put a cloud on your title preventing you from selling the property. You do have some options however to proceed with selling your house.
Your first option is to call up your solar company and see if they will remove the Mechanic's Lien for the purpose of the sale of the home and then put the lien back on the title after the close of escrow. The lien would then be tied to the new buyer. The problem is that the lender may not lend on a property with existing liens. The other issue is that the new buyer needs to qualify for the lease through the solar company and then that lease payment will be added to their total 43% debt to income ratio per lending regulations. This added payment ultimately reduces their buying power.
The second option is to remove the solar panel for approximately $500 (check with your solar company to see what they charge to remove their panels) and then make the necessary roof repairs to restore the integrity of the roof and proceed with the sale of the house like normal.
The third option is to remove the solar panels and replace them on your new home that you've bought after the sale of your home. Your lease would remain in place for the rest of the term you agreed to.
Be aware if you remove your panels and you want to break your lease you will be required to pay a penalty by your Solar Company.
If you are thinking about putting solar panels on your roof, call Chelsea Elwood, Realtor with Keller Williams Realty at 602-748-6136. Chelsea is happy to talk through the details and what questions to ask to your solar company.
Your first option is to call up your solar company and see if they will remove the Mechanic's Lien for the purpose of the sale of the home and then put the lien back on the title after the close of escrow. The lien would then be tied to the new buyer. The problem is that the lender may not lend on a property with existing liens. The other issue is that the new buyer needs to qualify for the lease through the solar company and then that lease payment will be added to their total 43% debt to income ratio per lending regulations. This added payment ultimately reduces their buying power.
The second option is to remove the solar panel for approximately $500 (check with your solar company to see what they charge to remove their panels) and then make the necessary roof repairs to restore the integrity of the roof and proceed with the sale of the house like normal.
The third option is to remove the solar panels and replace them on your new home that you've bought after the sale of your home. Your lease would remain in place for the rest of the term you agreed to.
Be aware if you remove your panels and you want to break your lease you will be required to pay a penalty by your Solar Company.
If you are thinking about putting solar panels on your roof, call Chelsea Elwood, Realtor with Keller Williams Realty at 602-748-6136. Chelsea is happy to talk through the details and what questions to ask to your solar company.
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