Selling a home with an escalated solar lease can be complicated. Finding a buyer that can justify the expense can be difficult. Having a solar realtor at your side during negotiations will give you added comfort knowing you are being represented properly. Getting the buyer qualified to take on the escalated lease is another story. Escalated leases guarantee that the monthly payment on your leased solar panels will continue to increase over time. This is usually dependent on the lease agreement. Adding leased solar panels with escalation into the equation can complicate things even more if your realtor isn’t an experienced solar broker with a history of managing and transferring escalated solar leases. At Solar Home Specialists in Arizona, we have years of experience buying and selling residential properties with pre-existing solar systems and solar leases in place. Most Arizona realtors have knowledge about buying and selling homes, but once you add an escalated solar lease transfer into the picture they really don’t know what to do, what questions to ask, or even what you should expect during the process. Worst of all, they don’t know how to frame the value of the solar system to build value in the buyer’s mind.
Solar leases can last as long as 10-20 years, and escalated leases can have incremental payment increases along the way. That can add up real quick. Another problem that can surface with a lease are escalating payments. This creates a unique situation for both the buyer and the seller. Most buyers won’t want to buy into an escalating lease. If qualifying for the solar lease begins to raise the buyer’s debt-to-income ratio, there may be additional issues qualifying for the home loan.
Buying and selling a home can be a stressful process, and when you are faced with something like an escalated solar leases it can feel even more stressful. With an experienced solar realtor at your side, you can find comfort in knowing that the escalated solar lease transfer process will be handled with your best interests in mind. With an expert solar leasing specialist from Arizona, working in Arizona, and acting as your solar realtor you can feel confident that the home you are buying, or the home you are selling is valued properly and the escalated lease transfer is a smooth and efficient transaction.
If you are buying a home with a solar system already installed on the property, you will benefit from the added value it brings to the home from energy savings without having to deal with the sales process and installation of the solar panels. Another thing buyers should consider when buying a home with a solar system installed is whether or not they own or lease the solar panels from an Arizona solar leasing company or not. If the panels were purchased by the homeowner, discussions of leases and lease transfers are nonexistent. If that is the case, there will be no lease transfer and the property can be sold as is.
Transferring an escalated solar lease in Arizona can be a time-consuming process and a lot of it has to do with the leasing company you are working with. Just like with the home itself, the home buyer will need to have their credit qualified and confirmed before the solar leasing company will transfer the escalated lease. This is an extra step of credit checks and qualifications that can seem daunting if your realtor doesn’t have experience transferring escalated solar leases. Our team at Solar Home Specialists have years of experience managing escalated solar lease transfers.
There are typically three things that will need to be done for to successfully transfer an escalated lease.
• The seller and the buyer need to agree upon the transfer terms and sign off to initiate the process.
• The buyer must meet minimum credit requirements to get approved. Once approved the buyer can take over the lease.
• After the home has closed, most solar leasing companies require proof of ownership. Sending a copy of the title is usually enough.
Homeowners in Arizona that are selling homes with solar panels already are familiar with the solar system and how it works. If you are not yet familiar with how a residential solar system in Arizona is designed to operate you can read more about converting your home to solar and what you can expect from the leased equipment. Once a solar homeowner sells a home and moves into their new place, they begin to notice the energy bills seem higher than what they were used to. Our team of experienced solar specialists can help you find a new solar plan to facilitate your energy needs.