Solar: Need help with the offer price

[Yulya Marucya]

Hello, I found an off-market deal and looking for an advice from fellow investors.

It's a 3BR/2BA in Largo, FL, 33774. The seller wants a market price of 320K (however in a hot market like this properties are going for way over the market price), BUT he wants me to also take over the loan for solar with monthly payment of $250, or add that 10K + 10K incentive that he needs to "pay back" to the purchase price. I'm new at investing and solar panels and not sure if I should try to negotiate.

What would you do in my situation?

[Dan Maciejewski]

Me, I take the loan off of the purchase price or, even better, I need it paid in full at close. 

Or, he can take it with him.

 Sellers really like putting their debts on other people sometimes.  He agreed to the loan terms, not you.  And I have seen some really shady solar loans that I would never agree to.  Sometimes old people agree because they figure it doesn't matter -- they'll either die or pawn it off on someone else.  If you decide to do anything other than require him to pay it in full, erasing all debt, then you will need to see the solar agreement to see if:

he's even allowed to sell the house,

he's allowed to pawn off the loan on someone else,

and if he', or anyone, is allowed to even pay it in full prior without penalty.

In the end it depends what you think the solar (and the house) is worth.  Our area is still new enough to solar that we don't have a set way of dealing with it.  In my mind, it's a liability not an asset if it takes money from me every month.  

*** Quick Edit:

In this market, and every market, the offer and ultimately the purchase price depend on YOUR numbers and goals and exit strategies, not the seller's.  The purchase price should be whatever makes sense to you.  Then you can sell that to the seller and see if he bites.  If there are other people willing to pay more than you, then he will go with them, and that's great.  If you have the best offer, he'll go with you, and that's great, too.  The only not great scenario is if you pay what he wants and it doesn't fit your goals and you end up losing money -- whether monthly cash flow or in a lump sum on a resale.