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I think the seller listed at 575 and he was intending to pay the solar panels off (probably to simplify selling a house with panels).
OP offered 515. Seller countered with 550, panels paid off. Then seller muddies the waters by offering another alternative. This causes OP to have a hissy fit.
By the way, it's not clear if OP's "comps" also have solar panels. If not, then, well, they're not comp.
One of the comps closed 485k , close to lake. Full update , and over 3000sq ft with 1.5 acres of land.
Another closed 550k , indoor swimming pool and spa with metal building.... over 4.5 acres of land over 3000 sq ft.
This property is less than 2 acres. Im not seeing solar panels adding 50k in Value. My offer is literally in the ballpark of these comps.
I am currently waiting for my cousin's husband to respond to me on how much value they add (he is a real estate appraiser).
Does the solar panel loan encumber the title? Can they even sell without satisfying the loan?
I suspect "yes" and "no."
And, yes, they should have disclosed it. Them or the agent or both.
Why would they need to disclose that? Disclosure rules are obviously different in every state, but that definitely wouldn't be a required disclosure here in MA. If the panels (or any other part of the house) were leased that would need to be disclosed. You don't have to disclose if you have a mortgage so why would you have to disclose if you have a lien for a solar panel loan?
My guess is the same as rational1's . . I believe the seller was planning on paying off the loan and including the panels in the sale. However, the OP's offer is too low to make doing that sensible from a financial perspective. So, seller is proposing some alternative ideas.
This being said, seller has clearly over extended themselves on this house and needs to get out more money than the market will bear.
Quote:
Originally Posted by rational1
I see it different.
I think the seller listed at 575 and he was intending to pay the solar panels off (probably to simplify selling a house with panels).
OP offered 515. Seller countered with 550, panels paid off. Then seller muddies the waters by offering another alternative. This causes OP to have a hissy fit.
By the way, it's not clear if OP's "comps" also have solar panels. If not, then, well, they're not comp.
That's silly to say that you can't use a house as a comp for another house because one has solar panels and the other doesn't. You can absolutely use a house without panels as a comp for one that does have them you just have to make an adjustment for the value of the panels.
Let me add that there is another house down the street. It was just dropped to 495k . Same acerage , more bedrooms, updated, and includes a huge metal building that has electric and plumbing.
Let me add that there is another house down the street. It was just dropped to 495k . Same acerage , more bedrooms, updated, and includes a huge metal building that has electric and plumbing.
We put an offer on a house. Its about 45-60 min from where I live now...
They were asking way way way over anything that selling nearby and the comps in the area are around 500k (with several more acres of land)
Asking price was 575 , we offered 515.
They came back and countered and said if they accept my 515k I have to take over their 75k loan they have on the solar panels they installed 2 years ago. 50k + 25k interest = 20 years 340 month. Or they said 550k and they will pay the panel loan off....
They never disclosed this in the listing. I don't see it appraising 550k and I'm not paying for the solar panels.
It has had no other offers and been on the market for 2 months.
Are these people insane? What would you do?
We are standing ground.
Yes they are insane
They likely ordered the panels without really understanding their house doesn’t work efficiently for solar panels
Run away
Why would they need to disclose that? Disclosure rules are obviously different in every state, but that definitely wouldn't be a required disclosure here in MA. If the panels (or any other part of the house) were leased that would need to be disclosed. You don't have to disclose if you have a mortgage so why would you have to disclose if you have a lien for a solar panel loan?
My guess is the same as rational1's . . I believe the seller was planning on paying off the loan and including the panels in the sale. However, the OP's offer is too low to make doing that sensible from a financial perspective. So, seller is proposing some alternative ideas.
This being said, seller has clearly over extended themselves on this house and needs to get out more money than the market will bear.
That's silly to say that you can't use a house as a comp for another house because one has solar panels and the other doesn't. You can absolutely use a house without panels as a comp for one that does have them you just have to make an adjustment for the value of the panels.
Disclose, disclose, disclose.
If the solar panel loan doesn't cloud the title, but is an unrecorded chattel loan, we would have even more intrigue.
Good ethical marketing removes gray areas.
Of course, the OP is in a position of some clarity at this point, which is significantly better than learning after executing a contract.
Exactly. The more the OP comes back with more comps, the more he reveals his hand that he wants this home over the others.
It seems to me perhaps you and your realtor need to see if there is a creative solution to the solar panel loan issue. Can the loan be refinanced or are there other ways to increase the net proceeds to the seller?
Last edited by Maddie104; 08-28-2021 at 06:29 AM..
Let the counter lapse and see if they come back. If not, you're $75k ahead of the game, so to speak.
They can't sell the house without satisfying the solar panel loan, or getting a new buyer to assume it. If it's been marinating in this market for two months they've got unrealistic expectations, and the market is telling them that. Taking a tack like this would drive nearly all potential buyers away, I would think, especially if there's nothing in the property listing about it.
You have the upper hand in this transaction. Use it to your best ability if you really want the place, or move on. As a professionally trained negotiator I can tell you that you have the most powerful tool available - the ability to walk away.
They’re stuck with this solar panel bill and they’re trying to get you to pay it off for them. I’m seeing the average cost for solar panels for a home as $11-15k, and another website says 11-40k, so $75k seems to be a stretch. I also see that solar panels typically increase the value of a home by 4%. I could see the panels adding $20k to the value, so 515-520k seems about right.
However, in the long run is that extra $35k by going up to 550k going to make or break your decision. We had to bid on our home 2 years ago and ended up going $20k over asking price, which was already listed $10k above similar comps at the time. 2 years later now and I see homes going for $100k more, so that 20k that I was worried about 2 years ago would have been a silly thing to give up our dream house for.
Our biggest factor though was location, a desirable neighborhood. People want to live here and homes here don’t come up very often for sale. If you have similar homes popping up for 50k less and this isn’t your “dream home”, then you might pass on this one. I know I’d be a little ticked off being stuck with this guy’s solar panel bill.
They’re stuck with this solar panel bill and they’re trying to get you to pay it off for them. I’m seeing the average cost for solar panels for a home as $11-15k, and another website says 11-40k, so $75k seems to be a stretch. I also see that solar panels typically increase the value of a home by 4%. I could see the panels adding $20k to the value, so 515-520k seems about right.
However, in the long run is that extra $35k by going up to 550k going to make or break your decision. We had to bid on our home 2 years ago and ended up going $20k over asking price, which was already listed $10k above similar comps at the time. 2 years later now and I see homes going for $100k more, so that 20k that I was worried about 2 years ago would have been a silly thing to give up our dream house for.
Our biggest factor though was location, a desirable neighborhood. People want to live here and homes here don’t come up very often for sale. If you have similar homes popping up for 50k less and this isn’t your “dream home”, then you might pass on this one. I know I’d be a little ticked off being stuck with this guy’s solar panel bill.
Good insight. The problem with this place is that it is outside the city limits (here in tx) and outside the east side of the city/town , which is not the prettiest nor the best side to drive thru. We were going to make an exception for the location. This would be my dream home if it had a metal building and located on the better side of town. However, those two missing factors keep my from paying an extra 35k for solar panels. I wish they could just take the panels with them.
Would I call it a dream home? I would say not. I still would need to pay 30-50k after closing to build a metal building that I need for my business, and my wife wants a pool. If this house had one or the other, and was in a better location. Sure, I would offer what they are asking.
I also would have to put my kids in private school in this area, because the schools are bad. I really do not see anyone paying that 550k just because it has solar panels. I see it appraising for around 500k and im not paying out of pocket for a house I have to spend 50k more on right after closing for it to suite my needs.
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