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vicktor etchart

Vicktor Etchart

Etchart Consulting Group

In partnership with RE/MAX Gold
DRE #-01291697

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Cell: 559-681-8976
Office: 559-321-6040

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SOLARIf You Think For A Moment That Solar Power In Your Home Is As Simple As Sign Here And It will Reduce Your Electric Bill, Think again. There's A Lot To Consider.

Before embarking on an installation, a homeowner should assess whether their house gets enough direct sunlight. Then there are the pros and cons of buying versus leasing. Buying the equipment can cost between $10,000 and $50,000 depending on your needs and the complexity of the installation. But once you recoup your expenses, everything else is profit. Taking advantage of rebates and tax breaks, such as the federal tax credit that can lower your cost expires at the end of 2016. By leasing you avoid the upfront costs but typically sign a 20-year contract BUT there are many other consequences that may change your mind about leasing and just go for purchase instead. Here are some considerations against leasing.

Solar Representatives May Tell You: It's easy to sell your home with a solar lease attached to it.

The Reality Of It Is: Homeowners and even real estate agents are now reporting that it has been or may be more difficult to sell their homes with a solar lease attached to it. Leased solar panels can complicate or kill a home sale in increasing situations.

Say you get pitched by one of the fast growing number of companies in the business of reselling solar panels at no upfront cost claiming their deal will save you lots of money on electricity bills. Sounds like a hands-down good deal right?. So you you go for it and do it. Then a few years later when you decide to sell the house, you assume that the presence of solar panels can only be a marketing plus, maybe even get you a higher price in the appraisal. Everybody goes for green, right? WRONG!

Some would be buyers balk when they learn that they'll need to qualify on credit to take over your solar lease payments for the next 15 to 17 years. Others say they like the house but won't sign a contract unless you buy out the remaining lease payment stream of $10,000 to $30,000 or more because they're worried that the solar equipment will become obsolete as technology advances or won't save as much on electricity bills as they were promise.

Their also a new problem arising. Buyers, sellers and their agents are encountering many mortgage companies stopping or even killing the transaction do to the fact the the solar lease increases the debt-ratio of the buyer by forcing the buyer to qualify for the take over of the solar lease attached to the property and the home seller could be confronted with a lien to their home from the leasing company preventing the seller from selling it until their contract has been paid in full.

If not, the home-buyers must qualify to assume the sellers lease with an excellent credit rating. If they can't qualify, then you the seller will be forced to pay off the lease in a lump sum in order to sell the home. You also have to disclose your solar lease obligation when selling your home.

Vicktor Etchart of the Etchart Consulting Group in Clovis CA advices that the most Important question to ask your solar lease salesperson is to provide YOU with a document in WRITING that assures you that it will be easy to sell your home with a solar lease attached to it.

Etchart stated that solar leases are becoming an increasing problem for sellers and buyers because of the rising popularity of solar perceived leasing savings and the problem is going to get worse in the near future because people are not aware of the implications of such leases.

If you have questions regarding solar leasing implications in your particular case, contact Vicktor Etchart at the Etchart Consulting Group in Clovis California directly.

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