REINCheck

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You're listening to REINCheck with Andrea Rice, Contracts and Industry Specialist at REIN, where you get the latest member news and information delivered straight from the source, REIN MLS.

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Andrea Rice
Hello and welcome to REINCheck. I'm your host, Andrea Rice, and today we are checking in with the REIN Sales Manager Advisory Committee member, Tanya Monroe, and we're going to be diving into a topic that's becoming more and more relevant in real estate, and that is solar panels. And as solar technology becomes increasingly common, they're bringing not only opportunities but some challenges as well for agents.

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Andrea Rice
So that's what we're going to be talking about today. And Tanya, thank you so much for taking time out of your busy schedule to be here today.

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Tanya Monroe
Thank you, Andrea, and I'm glad to be here.

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Andrea Rice
So this is kind of an interesting topic actually, and we've been seeing a big increase in homes with solar panels over the last few years, in particularly. And what trends are you noticing with solar panels locally here in Hampton Roads?

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Tanya Monroe
Well, I would agree with you, Andrea. Yes, there has been a big increase in homes with solar panels in Hampton Roads due to a few things. There are more favorable solar panel policies, such as what we call, the solar tax credits, and also the solar net metering, which is basically the sale of excess energy produced by the solar system.

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Tanya Monroe
But mainly, of course, the benefit of energy savings is a major reason homeowners are considering utilizing the system for solar panels.

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Andrea Rice
Yeah, absolutely. You know, it's become a hot topic, but there also seems to be a little bit of confusion. And one of the biggest points of confusion for agents and clients seems to be whether panels are owned or leased. Can you walk us through how that impacts the sale?

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Tanya Monroe
Sure, I'd be glad to, and it's a lot involved. And I think, first of all, let me just start with a solar system can be owned free and clear, which means the seller does not have any lien on the property. The other options for purchasing this type of system solar system can be a existing lease agreement or financing by existing loan, which probably will mean there's a lien on the property.

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Tanya Monroe
If you are the listing agent, it is very important for you to ask the seller about the status of a loan or lease. For example, who is the lien holder? Who is the lease holder? What is the current monthly payment? The loan balance. The long term or lease expiration? If the seller has a copy of the existing paperwork is even better for you.

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Tanya Monroe
But you need to know this information. Knowing this information will be critical when listing the property for sale. Does the seller need to include a pay off of existing loan, or require that the purchaser buy out a lease in order for the seller to basically at closing, convey the property free of any liens? This is critical. Knowing this information would impact the seller's net.

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Tanya Monroe
That means their net money and their pockets, and is a factor when determining the list price of the property as well. There's also some additional questions of whether there's agreement of sale of the excess energy, which I reference. Net metering produced by this solar system. Is the system covered or not covered by a warranty, and can the warranty be transferred to the purchaser?

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Tanya Monroe
And lastly, Andrea, a seller.

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Andrea Rice
Lastly.

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Tanya Monroe
Lastly, sellers should be able to provide details of the energy savings. What are their monthly utilities comparable to a home that doesn't have a solar system? This type of benefit may even be more valuable to prospective purchasers, and may increase the home value. I say may because typically in this area trending, I've reached out to several appraisers that I know, and right now they're not putting any value on it.

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Tanya Monroe
However, that doesn't mean going forward in the future with more understanding of these systems, it might increase and the market appeal might be huge as time goes on. So it would be really great for the seller to have this information as well.

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Andrea Rice
That is definitely more to think about than I would have ever imagined, because I think as just like a consumer, you're just like, oh, that's a nice to have solar panels, right? I might have some energy savings, but that that's definitely a lot of information, especially for both agents involved, because I don't think the typical consumer is aware of all of the things involved with a house that has solar panels.

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Tanya Monroe
I agree.

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Andrea Rice
And what are some of the biggest mistakes or maybe surprises you've seen agents run into when dealing with solar panels?

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Tanya Monroe
Well, I would say an agent could avoid shared mistakes and headaches by obtaining all the information that I have mentioned. Do your due diligence. If the agent's not doing their due diligence, how can they advise to sell a property properly? It's more Andrea than just walking up to the property and looking at the roof and seeing solar panels.

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Tanya Monroe
As I have described. There's more to it. So to avoid headaches and mistakes, then we will have to have a very good strong conversation with the seller on their position with the solar system.

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Andrea Rice
Right. Good points. Before we wrap up this conversation on solar panels, what is the biggest, maybe insight or takeaway that you would like our members to know when it comes to either listing or selling a home that has solar panels?

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Tanya Monroe
Well, I can tell you this was, very interesting for me because I've had several recent contracts come in on listings where they are solar panels. So therefore I did, Andrea, I did a lot of research, you know, the Google search and all of the others to really get into what this involves. And these things can be complicated.

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Tanya Monroe
So the solar system that has been installed on a property, check this out is not limited to just the panels. There are inverters. There are charge controllers, batteries, battery charge controllers, backup generators, power meters, power converters and cable. So, Andrea, therefore, it is essential that the agent understand what they're dealing with to advise the seller.

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Andrea Rice
Yeah, absolutely. And so much to think about. And I mean just is it owned is at leased what equipment is involved. It’s just. Is there a lien, is there not. Like there's a lot. A lot more than I think people realize. Yes. And we're seeing more and more solar panels. So that's why it's important to have the discussion.

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Tanya Monroe
That is correct.

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Andrea Rice
Well, Tanya, I want to thank you so much for being on the podcast today. It's always good to see you and talk with you. And as more homes go solar, understanding how these systems affect value financing and really the sales process itself isn't just a nice to know. It's essential to know. So thank you for sharing all of your expertise and helping our members better understand and navigate this evolving part of our industry.

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Andrea Rice
And I want to thank all of you for listening. I hope you enjoyed this episode of REINCheck, and if you've missed any of the previous episodes, I do invite you to go to REINMLS.com to take a listen, and if you have not done so already, please make sure you subscribe to REINCheck so you get new episodes delivered directly to you when they are released.

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Andrea Rice
Thank you and have a great day!

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VO
You've been listening to REINCheck with Andrea Rice. Stay in the know from those who know. Delivered straight from the source, REIN MLS.