How would you like to add more than $14,000 to your sales price when you close your next transaction? I’ve got data that shows a simple, eco-friendly upgrade can make that happen for you…IF you do it right. Get the details and avoid the mistakes by listening to today’s episode. I’m Carole Ellis. This is Episode 31.
So who doesn’t love the environment AND want to make an extra 3.74 percent or so on their sales price when they sell their home thanks to being earth friendly? I know all of that sounds good to me! And once I tell you how to make it happen, it’s going to sound good to you, too. First, though I want to mention a really valuable resource that you can get, if it’s still available in your area, that will enable you to LEGALLY BYPASS BANKS when you need funding for your deals. It’s a FUNDING KIT that not only tells you how many properties in YOUR COUNTY are available for alternative funding, but tells you how to gain access to them as well. See if your target market is still available by going to www.rei.today/kit right now for details.
Now, back to tacking on some SERIOUS CASH to your sales price the next time you sell a home. You may remember a few episodes back when we talked about the BUZZWORD that can be a BAD WORD for your funding. If not, check out Episode 24 for the details. That buzz word, as it turned out, was the word “green,” when used to mean environmentally friendly. Fortunately, although the wrong adjective can mean fewer eyes on your listings, the concept of eco-friendliness (that’s the RIGHT word these days, by the way) is still extremely popular, and nowhere is it more evident this spring than in the amount that buyers will pay over average comparable sales price in an area in order to get solar panels on their homes. That’s right: If your home has solar panels and you have a median-priced home, you could add more than $14,000 to your sales price according to The Appraisal Journal, a professional publication for appraisers. That number represents nearly four percent more than the average national sales price, which makes sun-loving pretty attractive.
To make solar panel installation even more attractive to investors and homeowners alike, there are hundreds of programs (and more all the time) designed to help you get those snazzy black panels up on your roof. For example, one solar installation firm, SolarCity, actually partnered with Bank of America to fund about $400 million in solar panel projects and homeowners assistance so that the homeowners did not actually have to pay upfront costs on installation. Other solar panel companies are working to make installation more affordable as well by offering homeowners leasing options on their panels in order to help them avoid the hefty $35,000 or so it takes to install a full bank of the panels.
But are solar panels really the best way to get a year’s worth of appreciation in most markets on your home in far, far less time? Maybe, and maybe not. There are some additional factors to consider. First of all, not everywhere is ideally suited for solar panels (regardless of what your tree-hugging friends and the solar panel installation companies tell you), and even if a home can use them effectively, if there are not other comparable properties in your area with solar panels, you’re not likely to get the value bump you’re expecting when you have your home appraised. In fact, the same Appraisal Journal study I cited earlier indicated that actually only about one in five homes has enough comps with solar panels in place to actually get the full home-value benefit. This is a big problem because even if a buyer is willing to pay for the solar panels, they may not be able to get a home loan to accommodate that extra chunk of change if the panels don’t appraise properly.
Second of all, some areas of the country where you would think solar panels would be HUGELY popular are having some trouble because the electric companies have managed to convince local legislators to charge solar-panel users higher electricity rates because, and I quote, “they’re not paying their fair share for the electric grid’s operating costs” thanks to lower electric bills. I’m going to go ahead and point the finger at the Nevada Public Utility Commission on that one. Can you believe that?
If you want to get the inside scoop on solar panels and all the other latest information on trends in home sales and home values nationwide, you need to stay in touch with REI Today! Text 33444 to REITODAY no spaces no periods, and I’ll help you stay in the loop with REI Today’s breaking coverage, alerts, and education and training library. Text REITODAY to 33444 to gain access to everything we offer or visit us online at www.rei.today. If you’re not yet a member, text REITODAY no spaces, no periods, to 33444 I’ll provide you with fast, immediate access to all sorts of great trainings, news coverage, interviews, and lot more timely information that will help make your investing safer, faster, and more profitable.
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REI Nation, thanks for listening in and always remember this:
Your best investment is your own education.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.