Free Solar Panels May not be Such a Bright Idea

Solar power leases may have pitfalls. We’re seeing more and more solar panel popping up on home these days and with them come issue when trying to resell one’s home. Studies have suggested that the addition of solar panels on a home can boost a home’s value. But sometimes those solar panels can sabotage a deal when it comes time to sell.Solar Power Savings

Selling Green Homes

Making the Case for Energy-Efficient Homes

Energy-Efficient Mortgages Gain Popularity

More Builders Find the Sun Is a Selling Point

Do Green Homes Fetch Higher Sales Prices?

More companies are offering home owners a contract to lease solar panels where they pay no upfront costs for the installation and could start saving on their electricity bills right away. But some home owners who sign onto these deals are finding some snags when they go to sell.

Many potential buyers are leery of taking on the leasing payment contracts for the next 15 to 17 years because they often have to qualify on credit from the solar companies themselves, in addition to the mortgage. Also, some buyers are hesitant to sign a contract because they’re concerned the solar equipment will become obsolete or won’t amount to a big savings in the end after paying the leasing fee.

We asked Solar city over to our home in Belmont for an estimate. Of course the carrot is free installation, but the savings is minimal. Since they are leasing you the equipment, they take an override on the energy their panels on your roof produce–and they sell that energy to you at a reduced rate–but it’s not anywhere close to free, as if you owned the equipment.

But we’re seeing issues trying to re-sell home with leased solar panels. Some home buyers are refusing to buy the house unless the seller buys out of the remaining lease payment stream — which could be $15,000 or more. If you’re going to eventually buy-out the contract anyway, it’s a far better idea to but it up front and enjoy 100% of the energy dollar savings.

In Fresno, Calif., a couple trying to sell their house told The Los Angeles Times that it attracted multiple offers but two sets of buyers backed out of the contracts due to the leased solar panels on their roof. The buyers felt the long-term cost of the lease agreement was too high or they were concerned about the credit qualifications they had to meet in order to take over the lease. Ultimately, the couple selling the home had to pay $22,000 to break the lease with the solar company so that they could sell the house.

With the rising popularity of solar, we already have seen several disputes arise over solar panel leases, and we expect the problem will get nothing but more frequent.

Residential solar installations are rising dramatically — up by 50 percent per year since 2012, according to the Solar Energy Industries Association.

Before you sign on the dotted line for a solar lease, check with your accountant for tax consequences if you purchase the system, you might qualify for a tax incentive write-off. A simple home equity line of credit may be all you need to qualify to own 100% of the power your home generates.

Source: “Leased Solar Panels Can Complicate – or Kill – a Home Sale,” The Los Angeles Times (March 22, 2015)

New Rules For Tax on Home Sales

Taxes

There are new rules for taxes on home sales you will want to understand. We know taxes are not the most sexy subject, but they’re important for one to understand when it comes to the disposition of real property assets.

First, what is FIRPTA? The IRS defines it as the, “Foreign Investment in Real Property Tax Act of 1980 regarding the disposition of a U.S. real property. Interest by a foreign person (the transferor) is subject to the  (FIRPTA) income tax withholding.”

What the Change to FIRPTA Withholding Means for You

Under current federal law, if a foreign person sells US real property, the buyer is obligated to withhold 10% of the gross sales price and remit this to the IRS. Pursuant to the Protecting Americans from Tax Hikes Act of 2015, however, which became law on December 18, 2015 (the “PATH Act”), the required 10% withholding will increase to 15% for all closings occurring on or after February 16, 2016.There is an exception to the increase for sales of a personal residence wherein the sales price is between $300,001 and $1,000,000. Under this circumstance, the 10% withholding rate continues to apply. In summary:

  • If the sales price is $300,000 or less AND the buyer will use as a personal residence – No change, exempt from withholding.
  • For all other real estate sales the buyer must withhold 15% of the sales price of the real estate (10% if a personal residence with a sale price between $300,001 and $1,000,000) and send it to the IRS within 20 days after the date of transfer.

Do you as a buyer really have to hang onto the 15% of the seller’s proceeds? The answer is if you don’t, you could be liable for the seller’s tax obligation. But not to worry, if you use an escrow company to handle your transaction they’ll take care of it for you, and protect you by having the seller sign a form for the IRS.

Information courtesy IPX Property Exchange Services, Inc. and Lawyer’s Title Company.

 

Disclaimer:

Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 20 years experience in helping sellers and buyers in their community. They may be reached at (650) 508.1441 or emailed at info@morganhomes.com.

You can find them on Facebook at https://www.facebook.com/Morganhomes and also find them on Twitter @ https://twitter.com/morganhomes

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

Belmont Homes Hit a New High

Notre Dame ExteriorBelmont homes hit a new high as our Best of Tour report for this week is being supplanted by the second highest price obtained (per square foot) for a home in Belmont—the highest being recorded less than a month ago in Sterling Downs.

One could argue that since the Sterling Downs home at 1,010 sqft was so small the price per square foot $1,262 record should be bested by the home on Notre Dame, a two bedroom two bath home of a modest 1,340 square feet in size. The lot is an unremarkable 5,340 square feet—just slightly above average. The home itself, a rather undistinguished but well-appointed home, yet nothing stands out as deserving the almost $1,200 dollar per square foot they received—nothing like solid gold appliances or whatever could possibly impress one enough to pay the $501,000 OVER the asking price (46% over asking). It was listed for $1,099,000 and sold for $1,600,000 in eight days.

Notre Dame YardBut then when we saw that the selling agent (representing the buyer) was from Woodside—one of the toniest town in America where homes have sold as high as $5,500 per square foot— it made more sense and it stands to reason that an out-of-area agent just might confuse the values in Woodside with that of Belmont.

 

Disclaimer:

Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 20 years experience in helping sellers and buyers in their community. They may be reached at (650) 508.1441 or emailed at info@morganhomes.com.

You can find them on Facebook at https://www.facebook.com/Morganhomes and also find them on Twitter @ https://twitter.com/morganhomes

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario. We did NOT sell this home.

Why do We Celebrate Memorial Day?

It’s special days such as Memorial Day where we like to step back from the barbeque and reflect on what is we are celebrating and why. Of course Memorial Weekend is the unofficial start of the summer season and along with summer comes grilling, BBQ’s and cookouts. We’ve got a great recipe we saw on Bobby Root Beer RibsFlay’s BBQ Addiction for Root Beer BBQ Ribs which we’ll be trying out this weekend. We hope to inspire you to get your cookout on the right track, but first, we’d like everyone to ponder the meaning of this very special Day.
We observe Memorial Day on the last Monday of May. We honor men and women who died while serving in the U.S. military. Originally it was named Decoration Day. Decoration Day originated in the years following the Civil War and became an official federal holiday in 1971. Many of us will observe Memorial Day by visiting cemeteries or memorials, holding family gatherings and participating in parades–unofficially marking the beginning of summer.
The flag of the United States is raised briskly to the top of the staff and then solemnly lowered to the half-staff position, where it remains only until noon It is then raised to full-staff for the remainder of the day.
“The half-staff position remembers the more than one million men and women who gave their lives in service of their country. At noon, their memory is raised by the living, who resolve not to let their sacrifice be in vain, but to rise up in their stead and continue the fight for liberty and justice for all.”—History.com
So while we hope that your Memorial Weekend is fun and you travel safely, we also hope we can all take a moment to remember the many sacrifices that we honor on this special day.

Belmont Loses an Icon, Gains Some Gourmet

The Greedy Ant comes to Belmont and while Belmont loses an icon, it gains some gourmet as there’s a changing of the guard. The Beli-Deli, an institution in Belmont which has served the residents and beyond very well and for many years, is closing its doors. Our best wishes—we hear they are retiring to Tahoe!

Beli DeliTo fill Belmont’s deprived sandwich lovers, The Greedy Ant Gourmet opened up three months ago in the place of the old flower shop at 932 Ralston Avenue—right between the US Bank and Divino’s Italian restaurant.

Owner Mark Paladini seems to be filling more than a vacant flower shop void as his offerings are reminiscent of the now defunct A.G. Ferrari’s gourmet Italian deli, currently the Panda Express.The Greedy Ant

We stepped inside The Greedy Ant to a plethora of imported and domestic specialties including over 40 different types of cheese which Mark will gladly let you sample. We settled on the Pistachio Pecorino which is a semi-hard sheep’s milk cheese. It had both a creamy texture and nutty crunch without being too salty, as some Pecorino’s can be. This cheese was amazing!Peccorino

The Gnocchi stuffed with mushrooms and truffles was beckoning to go home with us and we can’t wait to give them a try this weekend. We’re considering topping them with some Mascarpone and shaved Pecorino we brought home—if there’s any left after the appetizer round.

But it’s not just gourmet items they carry to pique your interest, they also have inspiring sandwich combinations. Forget about formulaic offerings, these sandwiches aren’t your standard ham and Swiss on rye. Each product chosen for his sandwiches is unique in its own way. His version of a ham sandwich is described like this, “Shaved Truffle Ham or Rosemary Ham, Creamy Havarti Cheese, Marinated Cipollini Onion, Organic Greens, & Extra Virgin Oil, Magic Mayo” And the ham they use– Imagine the number one ham in Rovagnati’s cooked ham range, Gran Biscotto (ham), a unique product, a myth in Italian charcuterie, combined with the heady flavor and aroma of truffle.

And if you are in need of catering that will impress your guests, we suggest you give Mark a call to hear about his full line of catering offerings–as intriguing as his shop.

Stop by and say hi to Mark and his crew but be careful not to drool on the displays of hand-picked specialties. We’re going back.

 

Disclaimer:

Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 20 years experience in helping sellers and buyers in their community. They may be reached at (650) 508.1441 or emailed at info@morganhomes.com.

You can find them on Facebook at https://www.facebook.com/Morganhomes and also find them on Twitter @ https://twitter.com/morganhomes

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

October’s Hunter’s Moon 2013

This week marks the occasion of the “Hunter’s Moon. A full moon which occurs each October after September’s Harvest Moon.

This can be found on NASA’s web site. According to folklore, October’s full moon is called the “Hunter’s Moon” or sometimes the “Blood Moon.” It gets its name from hunters who tracked and killed their prey by autumn moonlight, stockpiling food for the winter ahead. You can picture them: silent figures padding through the forest, the moon overhead, pale as a corpse, its cold light betraying the creatures of the wood.

So how many moons do we really have? Twelve to be exact:october-2013-partial-lunar-eclipse_72598_990x742

  • January – Wolf Moon 
  • February – Snow Moon 
  • March – Worm Moon 
  • April – Pink Moon 
  • May – Flower Moon 
  • June – Strawberry Moon 
  • July – Buck Moon 
  • August – Sturgeon Moon 
  • September – Harvest Moon 
  • October – Hunter’s Moon 
  • November – Beaver Moon 
  • December – Cold Moon

Ever wonder why the moon appears so large at the horizon and so small up in the sky? This phenomenon referred to the “Moon Illusion” is best explained by scientists but it has everything to do with your brain’s perception of relative size as it compares the moon to objects on the horizon. Try taking a picture of the same moon and you’ll be sorely disappointed that your camera doesn’t see things quite the way you do.

Enjoy the show this week and as the moon rises near sunset and appears to fill the sky.october-2013-partial-lunar-eclipse_72598_990x742

Greek Festival in Belmont 2012 – Free Tickets Just For The Asking!

Find the meaning of kefi (joy) in this three-day true Greek extravaganza. The Belmont Greek Festivalwill feature delicious Greek meals and desserts, nonstop music and dancing, exciting exhibition folk dancing, choral folk singing, a captivating mythology play, a fun children’s amusement area, and children’s entertainer Andy Z.

Continue reading