What Solar Power Means for Your El Dorado Hills Home
More and more we are coming across solar power that generates electricity on homes for sale in El Dorado Hills. To date appraisers don’t add value to a photo voltaic solar system on a home but there is another way to look at what solar power means for your El Dorado Hills home purchase.
When purchasing a home, you will need to budget for many costs of ownership. Lenders tend to include such things as home insurance, HOA dues, property taxes but maintenance and utilities can be a big chunk of change each month and need to be considered as well. PG&E supplies electricity here in El Dorado Hills and the rates are high. For example:
A 3300 square foot home built in 2004 (well insulated with newer and more energy efficient windows) in El Dorado Hills will have an electric bill of $400 - $500 per month on average depending on if you have a pool, spa, koi pond, exterior outdoor lighting, kids leaving lights on, etc.
Similar homes with solar power can have power bills of $50 or less per month depending on the size of the solar system.
To be on the conservative side – we’ll use a $400 per month savings for a house that has solar. What does that mean for you?
*It could equate to a car payment.
*Saved up for the year, it could be a nice family vacation to Disneyland!
*You could apply it to principle on your mortgage each month and pay your home off sooner.
But let's look at it in terms of a mortgage payment. Going up an extra $10K to get that solar home can save you much more than it costs. Assuming a 4.5% interest rate with 20% down, and 1.25% for property taxes, the following examples show an offer price of $10,000 more would cost $51 more on your monthly payment. Based on that $400 per month electricity savings, you are still ahead $349. (*Note the chart shows PITI but it doesn't include insurance so is really PIT - principle, interest, and taxes.)
You could go up as much as $78K and still be looking at roughly the same monthly output. ($400/51=7.8 x $10,000= $78,000)
An appraiser may not be adding value for the solar system the house you are looking at includes but you will definitely want to consider what solar power means for your El Dorado Hills home. Just a thought.
I am a REALTOR® in El Dorado Hills with Lyon Real Estate. I love living in El Dorado Hills, where homes with views have become my passion. Working with both buyers and sellers, my concentration on homes for sale includes not only El Dorado Hills, but also Folsom and the Cameron Park vicinity. For more information on me or our wonderful area visit my website at www.DeeDeeRiley.com or email me at firstname.lastname@example.org. When you're ready to sell or buy a home – I would love to help! To read what my clients have to say about me and my service, visit my Client Testimonial page.
By DeeDee Riley 2013 *All Rights Reserved*What Solar Power Means for Your El Dorado Hills Home
DeeDee Riley - El Dorado Hills Realtor - Lyon Real Estate - CABRE#01499004
When you're ready to sell or buy a home; I would love to help! To read what my clients have to say about me and my service, visit my Client Testimonial page.