Profile picture for user2331652

Is it difficult to sell a home with a brand new solar system with a 20 year lease?

I am thinking about investing in a 20 year lease solar contract.  But we will probably sell our house withing the next six to eight months.  How difficult is it to sell a home with a brand new solar system on the roof?  Keep in mind that we live in Escondido, San Diego, CA.  The weather is perfect for solar use.  If I do this, we would need a buyer that would be willing to accept the terms of this lease, so we could sign the solar system over to them.  If we are not able to find a buyer, we would be held liable under the terms of the lease agreement. How difficult would it be to sell a home with a 20 year lease agreement solar system? Any information that you could provide would be greatly appreciated.. You may email me at johnjohn722001@yahoo.com 
  • August 31 2012 - San Diego
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Answers (9)

I believe a buyer would find this valuable, however, it would not pay off fast enough for you as a seller...  Especially if you're moving in 6-8 months.  If you opt to go that route anyway, get all the details.  Some solar companies will put a lien against the property, with restrictions that the system is to be paid off in full at closing, as the lease agreement is not always transferable to the new owner.  All the best to you!

Melody 
  • January 27 2013
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No way!  Today is a sellers market and buyers are more apt to work with conditions like these because of the fact that there is a limited amount of homes they can purchase.  We have a listing that has the same scenario which hasn't presented an issue either so I wouldn't say that that should pose an issue. 

Please let us know if you have any additional questions!
  • December 04 2012
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I think buyers will like the fact that they are paying less on their electrical bill and it is a fixed payment for the lease term.

  • December 04 2012
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Choosing to do a 20 year lease when you may need to back out in 8 months is one question and your decision.  But, to answer your question about selling.  The answer is yes you can sell.  It may be more challenging than without a 20 year lease, but there are all kinds of buyers and everything is always negotiable.  

I hope that helps!

Kind Regards,

Sam
  • September 11 2012
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why in the world would you enter into a 20 year commitment when you know you are leaving so soon.  Is hard to get your money's worth on really normal and useful improvements. So why make selling hour home almost impossible. If you were to buy a home in your neighborhood would you take on this 20 year commitmment? No, do not do it!
 
  • September 01 2012
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If you are only going to be there for a few months, it makes no sense to obligate yourself or a prospective buyer to that sort of an obligation. It definitely would make your home harder to sell.
  • August 31 2012
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Profile picture for wetdawgs
Yes, it would be very difficult.

With a six to eight month time frame, don't do it.

  • August 31 2012
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Profile picture for Ofe Polack
Short answer, I would not do it if you are only going to live in the house for 6 months.  I do not think that it would add any value to your property.
  • August 31 2012
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Profile picture for Blue Nile
How are you "investing" in it if you aren't paying for it, and you will get minimal return for your monthly lease costs?  If you are only staying about 1/2 a year longer what possible benefit will it be to you?  Perhaps you are planning on taking the tax write off?  I don't think it applies if you are only leasing the equipment.

Value of the system is only the money it saves on the utility bills.  And subtract from that the additional costs for re-roofing for the periodic maintenance.  You need to make sure your roof structure is rated for the additional weight and wind loading too.
  • August 31 2012
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