Advice on selling my home to a solar company

[Kissmytoe24]

A large solar company recently approached me with an offer to buy my house. They want to put batteries in my area to harvest energy from their solar panels, which is about 2 miles away, so they may sell the energy to SoCal Edison. They sent me an option agreement for some money upfront and an option for them to purchase in 18 months. One neighbor has signed an option agreement and is moving out. Another neighbor is negotiating. Is there anyone here that has been through a similar situation and can give me some pros and cons about the experience in hindsight?

 

[adjusterjack]

There shouldn't be any cons if you get the right price for your house.

Just make sure you have the option contract reviewed by an attorney to protect your interests and nothing gets done to your property until it's actually bought.

 

[Kissmytoe24]

There shouldn't be any cons if you get the right price for your house.

Just make sure you have the option contract reviewed by an attorney to protect your interests and nothing gets done to your property until it's actually bought.

Definitely doing that, and I also know that each contract is different. I am just looking to see if anyone can give me insight on what they wish they would have done or asked in a similar situation when selling there home to a large company because sometimes I don't know what to ask. I know what I want but I am trying to see if anyone can give advice that would be helpful with negotiations and what to watch for legally...

 

[quincy]

Definitely doing that, and I also know that each contract is different. I am just looking to see if anyone can give me insight on what they wish they would have done or asked in a similar situation when selling there home to a large company because sometimes I don't know what to ask. I know what I want but I am trying to see if anyone can give advice that would be helpful with negotiations and what to watch for legally...

Make sure that any price negotiated for your house is a fair one and enough to purchase another house in an area where you wish to relocate. Large companies are very rarely generous with their initial offers.

Talk to your neighbors. And have a real estate attorney with experience help with all negotiations and up through the purchase.

 

[STEPHAN]

One neighbor has signed an option agreement and is moving out.

Why is he moving out if it is only an option contract? I have seen many projects that never happened because one owner refused to sell.

 

[LdiJ]

Why is he moving out if it is only an option contract? I have seen many projects that never happened because one owner refused to sell.

Or even the solar company deciding not to exercise their option for one business reason or another other than that. Sounds like the neighbor doesn't understand what an option is.

 

[Kissmytoe24]

Why is he moving out if it is only an option contract? I have seen many projects that never happened because one owner refused to sell.

He is moving out because his wife is on hospice and they are moving to an assisted living facility. They were ready to move anyways. they are in there 80's and have lived there 50 years. there house is paid off.

 

[quincy]

He is moving out because his wife is on hospice and they are moving to an assisted living facility. They were ready to move anyways. they are in there 80's and have lived there 50 years. there house is paid off.

So … the elderly neighbors who are moving are not relying on the purchase of their property to move, or are they waiting to move once (or if) the solar company finalizes the purchase of their house (if the solar company decides in fact to exercise its option)?

Setting a purchase price now, without knowing what the market value of your house might be in 18 months, could be a mistake. You will want an attorney to personally review the option agreement so you don’t find yourself legally bound by its terms to selling your house at a price well below its future market value.

It can be easy to be lured into an agreement when upfront money is offered. It is important to look at not only what cash is handed over today but what you could lose in cash in 18 months.

 

[Kissmytoe24]

So … the elderly neighbors who are moving are not relying on the purchase of their property to move, or are they waiting to move once (or if) the solar company finalizes the purchase of their house (if the solar company decides in fact to exercise its option)?

Setting a purchase price now, without knowing what the market value of your house might be in 18 months, could be a mistake. You will want an attorney to personally review the option agreement so you don’t find yourself legally bound by its terms to selling your house at a price well below its future market value.

It can be easy to be lured into an agreement when upfront money is offered. It is important to look at not only what cash is handed over today but what you could lose in cash in 18 months.

My neighbors signed a non disclosure so I am not actually sure what agreement was made. They did tell me they have 18 mo. to move but are moving now.. Thank you I will talk about negotiating a purchase price in the future and not now through an attorney. Also my other neighbor is s in the same agreement as me but has not signed yet just negotiating. They told her attorney they will not pay him unless she signs an agreement. Just a risk of the venture? Your thoughts?

 

[LdiJ]

So … the elderly neighbors who are moving are not relying on the purchase of their property to move, or are they waiting to move once (or if) the solar company finalizes the purchase of their house (if the solar company decides in fact to exercise its option)?

Setting a purchase price now, without knowing what the market value of your house might be in 18 months, could be a mistake. You will want an attorney to personally review the option agreement so you don’t find yourself legally bound by its terms to selling your house at a price well below its future market value.

It can be easy to be lured into an agreement when upfront money is offered. It is important to look at not only what cash is handed over today but what you could lose in cash in 18 months.

I would normally agree with you, but the housing market is really high right now and is overdue for a correction. Therefore, it might be the buyer, rather than the owner, who is taking the bigger risk in this particular instance.

 

[Kissmytoe24]

I would normally agree with you, but the housing market is really high right now and is overdue for a correction. Therefore, it might be the buyer, rather than the owner, who is taking the bigger risk in this particular instance.

My other neighbor is in negotiations but hasn't signed yet. They are offering 3,000 in attorneys fees but told her attorney they will not pay unless she signs an agreement. Is this standard, or could they be not negotiating in good faith, or just a risk of the venture on my part?

 

[LdiJ]

My other neighbor is in negotiations but hasn't signed yet. They are offering 3,000 in attorneys fees but told her attorney they will not pay unless she signs an agreement. Is this standard, or could they be not negotiating in good faith, or just a risk of the venture on my part?

It makes sense to me that they are willing to reimburse 3000.00 for her attorney fees if she signs an agreement. I could certainly see why they would have no interest in paying part of her attorney fees if she does not. There is definitely nothing nefarious about that.

 

[quincy]

My other neighbor is in negotiations but hasn't signed yet. They are offering 3,000 in attorneys fees but told her attorney they will not pay unless she signs an agreement. Is this standard, or could they be not negotiating in good faith, or just a risk of the venture on my part?

Have you investigated this solar company to see how long it has been operating and how many other solar farms it has developed? Are there other large parcels of land in your general vicinity that might be under consideration for purchase by this company?

Option contracts can be a risk for a property seller because the property cannot be sold to someone else during the option period and, in the end, the solar company might decide not to buy. You are left in a sort of limbo, in other words, where you own your home but will question all costs of maintaining and repairing and improving the home for fear that these costs will not be recovered.

So, yes, there are risks and disadvantages to option agreements. Any negotiations should take these into consideration.

You could try to locate others who have sold or leased their property to solar companies. A real estate attorney who has experience with solar farm sales and leases might be a good source of information. There are several law firms in California that have attorneys who specialize in renewable energy/solar energy matters.

 

[LdiJ]

Just as an FYI, the typical reasons that a company pays for option agreements on property is because the whole deal hinges on all of the parts falling into place. So, they need a certain number of properties in the area in order to make it work, so they pay for options on properties until they are certain that they can buy all that they need, and that there won't be a hold out who makes the deal impossible. Then, there is financing. They don't know for sure how much they need until all of the options are in place so that they can buy all of the properties that they need, and the business plan is in place. If everything falls into place, they exercise the options and buy the properties. If the deal falls apart, they lose their investment in the options, and don't buy the properties.

 

[Kissmytoe24]

Thank you so much for your advice I really appreciate it the insight you've given me!