How does solar benefit me if I buy and sell my properties?
One of the main things you may want to consider is…how long does it take to complete the renovations and have the house under contract with a new buyer? Perhaps, you can use this time towards an investment advantage.
“On the surface it would seem that you could fix and flip a home in 3 months: Buy the property, fix up the property, list the home and sell it. If it takes me 10 weeks to make repairs, 1 week to list the home and 8 weeks to sell the home, I come up with 19 weeks to complete the fix and flip.” (5mos) -Mark Ferguson, 10-15 flips completed per year
“New research sponsored by the Department of Energy shows that buyers are willing to pay more for homes with rooftop solar panels — a finding that may strengthen the case for factoring the value of sustainable features into home appraisals.” -New York Times
Adding solar provides multiple advantages to your flipping initiatives:
◊ Tax credit opportunity with one of the qualifiers being length of time in the residence. (Example: Flip taking 3+ months to complete and the solar is installed and activated on home for a certain period of time under your name before you sell)
◊ Broaden homebuyer’s appeal as more are shifting towards energy saving options.
◊ Increase asking price for your home as buyers understand the value and are willing to pay a premium for solar, thereby allowing you to recoup your cost of the system.
◊ Solar gives you a competitive edge when comparing other homes that do not have that option.
◊ Ultimately, this can help you sell faster and reduce holding costs.
“Studies show that homes with solar panel systems have property values 3-4% above similar homes in the same area. They also sell twice as fast as the competition.” -Energy Sage