As you arrive at the location, you notice the gleaming black squares on the roof, which are about to complicate the task at hand. You may consider reversing your car and leaving, or contacting the client to request a different assignment. However, given the current competitive market with a shortage of orders, it would be worthwhile to explore alternative solutions to tackle this issue.

To begin with, how do appraisers determine the value of a property’s amenity? Appraisers frequently encounter properties with distinctive characteristics, and they require a variety of tools to assess their worth. In the case of assessing the value of solar panels, what tools should be included in an appraiser’s toolbox?

It goes without saying that appraisers always carry sales comparable tools with them, which are essential like a hammer in a toolbox, on every assignment.

Deeper within the toolbox, there is a tool known as the cost-approach method. While it may not be the most effective method for determining contributory value, it can still be used for assessing the worth of unique features, akin to using an Allen wrench to hammer in a nail. At the bottom of the toolbox, covered in dirt and grime, is the neglected income approach. This tool is comparable to a torque wrench, where it may not be used frequently, but it is invaluable in times of need. Surprisingly, the income approach can also be utilized to evaluate the contributory value of solar panels, despite its lack of use. In other words, an adjustment for solar can be determined using the income approach.

In summary, when presented with a challenging appraisal assignment, it is essential to delve into our appraisal toolbox and utilize all available tools to generate reliable outcomes. It’s important to explore all three approaches to value, and for any distinctive feature that may be encountered at a property, there may be multiple ways to determine its contributory value.

Regarding solar panels, one can convert the amount of electricity generated into a monetary value, which can be considered as income. By delving deeper into the toolbox, solving appraisal problems like these can be simplified.