How many appraisers are truly familiar with valuing properties with solar? I’ve completed a couple dozen assignments on properties with solar, whether the panels were leased, financed, under a PPA, or owned outright. Just last week, I handled two more assignments involving solar—one for setting a listing price and another for a divorce case. Understanding how to appraise properties with solar can be a valuable specialty that enhances your non-lender assignments and sets you apart, potentially increasing your business volume.
Coincidentally, I recently attended Mark Buhler’s 7-hour solar continuing education class through Appraiser eLearning, and I highly recommend it. Even if you’re already familiar with valuing properties with solar, this class serves as a great refresher and taught me a lot about using the PVValue Tool more effectively. Definitely check out his class!
I wanted to share my experience appraising two properties with solar systems this week. The first property was an estate inherited by a son whose father had purchased solar panels 3-4 years ago with a loan. The son hired me to determine the property’s value for setting a listing price, as he had received multiple offers from rehabbers. We discussed various appraisal approaches, including factoring in the solar panels as if they were paid off or excluding them altogether, and how each scenario could affect the property’s marketability and saleability. Due to the additional work required for analyzing the solar aspect, I charged an extra $100 for this assignment. I was chosen for this job specifically because of my familiarity with solar systems.
The second property was part of a divorce case and involved a particularly challenging situation. The couple had purchased solar panels through a loan from a solar company. Although they believed the installation was permitted, it turned out the company hadn’t secured one, leading the city to require the removal of the panels. At the time of my appraisal, the panels were lying against the house, and the roof was leaking due to the removal. To make matters worse, the solar company had since filed for bankruptcy, leaving the couple with a loan but no functioning solar system. In this case, the impact of the solar panels on the property’s value was $0, but the roof damage did affect the overall valuation.
So, how can you use your solar experience and knowledge to get more private work? I maintain a database of about 750 agents, and I send them weekly emails, including one specifically about solar. Here’s a link to that email. How many appraisers in your market are reaching out to agents to let them know you can assist with listings that have solar panels? You could also offer to speak at real estate offices about solar and how to properly value properties with solar installations. So, put your continuing education to work this week to boost your income and expand your business!
If you’re looking for more private work, consider joining the Appraisal Referral Network at ReferAppraisals.com. For just $20 a month, we provide non-lender education with actionable tips to help grow your business. You can also join our referral network for free, which connects you with peers and increases your chances of receiving referrals for private work.
Daniel Lindeman
Appraisal Referral Network
