What happens when a home with leased solar panels is sold?

Recently I encountered one a situation with a home that had a leased solar array, and a common question I get from both home buyers and sellers: What happens when a home with leased solar panels is sold?

This home was beautiful. Great layout, open kitchen, fantastic backyard...and a leased solar system already in place on the roof. The seller had entered into a solar lease agreement a few years prior for a 20-year term. The solar array had generated power to offset their cost of their monthly utility bills, which the seller had loved...and at the time of sale, the solar lease was transferable to a new homeowner.

Sounds good, right? Almost.

The buyer loved the home. They were especially excited about the idea of lower energy bills and sustainability. But once they got their hands on a copy of the actual solar lease agreement and dug into the fine print, the mood shifted.

The terms weren’t a dealbreaker on the surface, but the buyer had some questions. The monthly solar lease payment increased slightly each year. The agreement required the new owner to formally assume the lease through the solar company’s process, which involved a credit check and added paperwork. At the conclusion of the 20-year term, the homeowner did not actually own the solar panels...instead they had the option to extend the lease, or have the panels removed, or IF they wanted to buy those panels there was a balloon payment option at the end of the term. The buyer wasn’t thrilled about the idea of being locked into a third-party agreement they hadn’t chosen. On the upside, not owning the panels meant they did not have responsibility for maintaining the panels. The buyers were torn...

Rather than walk away, the buyer made an ask: they loved the idea of having a home with solar panels, but only if they could own them outright. After a little back-and-forth, both sides reached an agreement: the seller agreed to pay off the solar agreement at closing, which converted the system from a leased asset to an owned one and gave the new owner full ownership of the solar array from day one.

So many homeowners in Sacramento are now installing rooftop solar systems (and rooftop solar is actually required on new construction homes!), but not everyone realizes how it can affect a sale. The reality is that many buyers will happily assume a solar lease from a seller, while other buyers will not love it and want to negotiate with the seller to pay off the solar to own it outright. 

Leased Solar vs. Power Purchase Agreement Solar vs. Owned Solar: What sellers and buyers should know...

Leased Solar Systems are owned by a third party. Homeowners pay a monthly amount for the use of the solar system. These leases often last +/-20 years and are usually transferable, but buyers need to qualify and agree to the lease terms.

Often confused for a solar lease is a "Solar Power Purchase Agreement" (PPA). A solar lease charges you a monthly fee to use the solar panels, while a solar power purchase agreement (PPA) charges you based on the actual electricity the system produces. With a lease, you pay for the equipment; with a PPA, you pay per kilowatt-hour of energy. In both cases, the 3rd party solar company owns the system and typically handles maintenance.

Owned Solar Systems, whether paid in cash or financed and paid off, are treated like other fixtures. They generally add value to a home and are simple to transfer because there’s no lease to assume.

What to do if you are selling a home with Solar...?

Pull out your solar contract before you put your home on the market...buyers will want to review it. They likley also will ask for copies of your energy bills...be prepared and download 12-months of your bills so buyers can evaluate the seasonal fluctuation of power production and utility billing, AND so they can look at your "true-up" bill if you have one. In California, you will also want to complete the "Solar Advisory and Questionnaire" Disclosure.

Be upfront about whether the system is leased, on a power purchase agreement, or owned (with or without a loan). And be prepared to discuss options: Are you willing to pay off the lease? And how much does it cost to pay off the lease? Can the lease or power purchase agreement be assigned? Will the buyer need to apply to assume it?

In my case, the seller closed the sale, and the buyer got a great home and a fully-owned solar system. But it was only possible because we had the right conversations upfront, read the fine print, and stayed flexible.

So yes, you can absolutely sell a home with solar in Sacramento. But whether it’s smooth and seamless or unexpectedly sticky depends on many factors.

What Happens When You Discover an Old Water Well on a Suburban Property?

If you follow me on Facebook or Twitter you will probably already know that I had a unique situation in one of my recent transactions. After nearly 20 years as a Sacramento real estate agent, I do not have many "firsts" anymore, and this situation definitely was a new one for me!

In rural property transactions, it’s pretty typical to come across homes that rely on water wells for water rather than municipal water. In many rural areas (around here think places like Elverta, Wilton, Rio Linda, Herald, etc), municipal water systems don’t exist as they are located too far outside of cities or county service areas, where public water infrastructure is only extended so far...when I sell a home with a water well, we commonly inspect them for structural integrity, water quality and quantity, and that the pump equipment works well. No big deal...another day at the office.

But in suburbia, encountering a water well is a lot less common. So when I’m representing a buyer on a suburban home and we learn there’s a old well on the property, my antennae go up. And that’s exactly what happened recently in Carmichael. 

The home is fully connected to public utilities now: water, sewer, etc. But as we reviewed the property disclosures, the seller noted something unusual: an old water well in the backyard. It hadn’t been operational for decades. Just... there. And the hole just covered with a small piece of concrete the size of a garden paver.

Naturally, my buyer had questions. And so did I. We started digging (figuratively of course, LOL). I reached out to my go-to local well service contractor to learn more about the rules and risks. Turns out, unused wells -- especially old ones -- can pose serious hazards. For one, they’re often incredibly deep (this one was measured to be 138 feet deep!). That is a major safety risk. Remember the story of Baby Jessica? No one wants a hidden vertical shaft on their property, especially if they have kids or pets. 

And then there’s the environmental angle. If surface water from a storm, or someone washing their car, or sprinkler runoff after fertilizing the lawn gets into that well it could carry contaminants directly into the groundwater supply. That’s a big deal for neighborhood water districts that depend on groundwater for their water. 

State law requires that abandoned wells be properly destroyed—meaning sealed from bottom to top with approved materials like concrete, to prevent contamination and collapse. Sacramento County Department of Environmental Management oversees this process in the county. The process has to be handled by a licensed C-57 well contractor, with permits, inspections, and documentation filed. 

So this week, I stood in the backyard of that Carmichael home as the County supervised the destruction of that old well. The contractor pumped concrete all the way to the surface—officially sealing off that 138-foot well shaft once and for all. In this case, we negotiated that the seller pay for this...and it was not cheap.

It was a great reminder: even in the middle of suburbia, properties can come with surprises.

If you’re buying or selling a Sacramento home and come across something like this, don’t panic—but do ask questions. The solution might just be a little concrete, some paperwork, and peace of mind.

New listing - 4041 Neapolis Lane, Sacramento, CA 95834

Welcome to the vibrant Paseo at Westshore community in North Natomas! This lovely 3-bedroom+loft, 2.5-bath, 1,811sf home offers stylish, low-maintenance, and energy-efficient living! You will love the open-concept main level, which features laminate floors, and a spacious great room. The kitchen has espresso cabinets, granite countertops, stainless steel appliances, and a large breakfast bar that is perfect for entertaining. The dining area opens to a private, low-maintenance backyard with a patio. Upstairs, the primary suite includes a walk-in closet, ensuite bathroom with dual sinks, and a large shower. Additionally, upstairs you will find two large additional bedrooms, a full bathroom, and a laundry room. You will also love the generous loft, which is ideal for a home office, gaming room, play area, or an optional 4th bedroom. Enjoy modern comforts and efficiency with a tankless water heater, tile roof, and low-E windows. 2-car garage. The HOA maintains the front yard, freeing up your time to enjoy the nearby parks, trails, and all that the Westshore community offers. Conveniently located near shopping, dining, award-winning schools, and easy freeway access downtown or to the airport. Don't wait! HOA dues $38/month. Offered at $525,000. For more photos and a 3D Virtual Tour, please visit 4041 Neapolis Lane, Sacramento, CA 95834.

Aspiring to be a homeowner in Sacramento? Here are 6 things to start doing to prepare...

Lately I have been chatting with several folks who are thinking about taking the plunge into homeownership -- some sooner than later -- and for many of them it is a little overwhelming as far as what to do to get started. I help buyers of all shapes and sizes, price ranges, and experience levels, and what I recognize is that whether this is your first time or your 5th time, many of the steps are the same or they significantly overlap! What is another day at the office for me is a life-changing event for you. So here are some things to think about as you contemplate your future home purchase.

(1) Check your credit score. Lenders use your FICO score to determine your mortgage interest rate...higher FICO scores lead to better interest rates, which can save you tens of thousands of dollars over the life of your mortgage. I cannot emphasize how important it is check your credit. For one, sometimes credit reports have errors, and they take a little time and effort to correct. NOTHING is more frustrating than finding a home you want to buy, and then trying to qualify for a mortgage only to discover some issue on your credit report that you could have proactively resolved -- sometimes this will cost you getting the house you love, or you will have to spend more to purchase it. Second, there are ways to improve your FICO score like paying down credit card balances, avoiding opening new lines of credit, having a solid history of on-time payments, etc. Pro tip: my bank offers free credit score monitoring, which I personally take full advantage of...I would highly recommend this as well. According to the Federal Trade Commission, federal law gives you the right to get a free copy of your credit report every 12 months from each of the three credit bureaus. In addition, the three bureaus have permanently extended a program that lets you check your credit report from each once a week for free at AnnualCreditReport.com. If you do not want to order your credit report online, they offer two other alternatives: call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You can always ask a mortgage lender to run your credit as well for a fee.

(2) Where is your downpayment coming from? Often people assume you need 20% down to purchase a home, however that is not true. Many mortgage loan programs only require 3% - 5% down, or even 0% for qualified buyers like veterans who qualify for VA home loan financing. Most people who call me do not realize that they may already have enough in savings to qualify for a mortgage. Or, your downpayment may not already be in hand, and could be coming from the future sale of another property, or often my clients will receive downpayment "gift" funds from a family member -- and you probably need less of a gift than you think. In California, downpayment assistance help is available through a variety of state and local programs. Keep in mind that funding for these programs ebbs and flows. Here are a few available in our area to those who qualify (usually based on things like income, family size, and where the home is located):

• California Housing Finance Agency (CalHFA) Downpayment Assistance Programs – Offers several different types of conventional and FHA loans, and a couple forms of downpayment and closing cost assistance programs. 
• City of Citrus Heights Downpayment Assistance – Offers a low interest loan of up to $40,000 with no monthly payments (a "silent second" loan) for purchase of a home in Citrus Heights.
• City of Elk Grove Homebuyer Assistance Program – Offers a silent second, deferred-payment loans to first-time homebuyers meeting certain income and eligibility requirements
• Golden State Finance Authority (GSFA) Golden Opportunities Program – Helps low-to-moderate income homebuyers in California purchase a home with little-to-no money out of pocket by providing down payment and/or closing cost assistance (DPA) with an FHA, VA or USDA Mortgage Loan. You do not need to be a first time buyer.

(3) Talk to a Lender...please do this before you start sign up for online listing notifications and stalking open houses! Before falling in love with a listing, you really need to know what you can afford. A mortgage lender will help you...they will run your credit (and hopefully you followed step 1 and already have a sense of what your FICO score is and have worked to optimize it). The lender will take a look at your income, assets for a downpayment (or from step 2, downpayment assistance, proceeds from a future sale, gift funds, etc). They will run through different financing scenarios with you to help you understand what you can afford versus what you want to spend -- these are often very different! Perhaps the lender can qualify you for a $750,000 purchase but your comfort level with your monthly payment really lands at a $600,000 purchase. These are very important distinctions to make. ALSO, be sure you are taking all of the factors of the monthly payment into consideration. If your lender is not providing you clarity on the loan principal and interest, property taxes, homeowners insurance, and (if applicable) mortgage insurance then you are talking to the wrong person. Also while you may see lots of online ads for lenders, I would strongly recommend working with someone who is local, and who can sit with you and explain things. I can refer you to some great ones.

(4) What neighborhoods are you interested in? Location. Location. Location! The old adage in real estate is true. You can change a lot about a home's condition but you can't change the location. What vibe best suits you? Whether you want to live near the action of downtown or midtown Sacramento, or in a suburb like Elk Grove or Carmichael, or a charming vintage neighborhood like Land Park or East Sac, take time to do a little research. Common themes I tend to discuss with my clients are:

• School boundaries, and school district boundaries. I have resources to help you research school ratings, and everyone seems to value different things or programs in different schools. Got a particular school in mind where you really want to enroll the kiddos...? You should CALL THE DISTRICT and ensure that the school does not have an impacted enrollment and that your kiddos can actually go there. It can be a rude awakening buying a home down the street from the school where you want your kids to attend only to find out that the school does not have room, and the kiddos get enrolled elsewhere.
• Public amenities like parks, trails, community centers, etc. Sacramento has lots of wonderful recreation opportunities...some folks MUST be near an aquatic center. Or near the river. Or near William Land Park. Or in a secluded area. Being near those amenities may come with trade-offs -- like a higher price. Like traffic. Like noise. Like higher homeowners insurance costs. Like a long commute. Again, explore the areas and make sure living near those amenities (rather than visiting) actually makes sense.
• Safety. I often get asked if "fill-in-the-blank" is a good neighborhood?...well, for one my definition and your definition may differ, and I must emphasize that while realtors can give you certain insight and resources, we legally and ethically CANNOT “steer” buyers to or away from specific neighborhoods for any reason. That’s why doing your own research and visiting areas that interest you is so important. I have resources for clients who want to research crime rates. And drive by the area at different times of the day to get a sense for what the activity level and type is. 
• Demographics. Remember what I just said above? If demographics are important, the US Census has some great info for your perusal. 

(5) What type of property is best for you? Buying a single-family home isn’t your only option. Condos and PUDs can sometimes be more affordable and lower maintenance. Think realistically about your lifestyle, budget, and long-term goals. My first place was a condo before I moved on to a single family home. Each type of property comes with trade-offs: 

• Condos: When you buy a condo, you essentially own the interior of your unit, but not the land or exterior structure. Common areas like landscaping, pools, and roofs are typically managed by a homeowners association (HOA), and you'll pay monthly dues to cover maintaining those. Dues are subject to increase, and HOAs have rules that not everyone enjoys (like to limit the number or size of pets, or to govern the types of decoration you can put in your windows, for example). Not every HOA is the same -- some have deferred maintenance that can lead to sharp dues increases if the HOA governing board is not carefully planning for future expenses.
• Townhomes/Planned Unit Developments (PUDs): these may have many similarities to condos with shared walls and HOAs, however with a townhome/PUD you typically own the structure (interior and exterior walls) and the land it sits on (including the front and backyard, if any). Again, the governing boards of the HOA may be more proactive or reactive when it comes to maintenance.
• Single family homes: these offer more privacy and land space, fewer rules (though single family homes can be in HOAs too) but usually require more upkeep and maintenance as the expenses are not shared with other property owners.
• Side note: if you are interested in HOAs or have questions, I wrote my masters thesis about HOAs and would be happy to nerd out with you. 

(6) Did I mention talk to a REALTOR? Aspiring home buyers tend to reach out to me at different times during their exploration of purchasing a home...I come into the fray often as the first call -- and if that is the case I will help you navigate these steps in whatever order makes sense. Sometimes I am contacted as the last step as someone really wants to dive into their home search. All good either way. I am ready when you are. We will talk through what it means to enter into a Buyer Representation Agreement (the scope of the agreement, timeframe, compensation terms, geographic areas covered, type of property, my fiduciary duty to you) for professional representation, and how I advocate on your behalf, etc.

If you’re thinking about buying your first or 20th home in the Sacramento area, I’d be honored to help and welcome your call to see if we are a fit to work together.

New listing - 6922 Linda Sue Way, Fair Oaks, CA 95628

This adorable 3 bedroom, 2 bathroom, approximately 1308sf Fair Oaks home was rebuilt in 2015! You will love the open layout. Enter to find a spacious great room with large sunny windows and a gas fireplace. Large dining space and kitchen. The remodeled kitchen overlooks the backyard, and is the perfect set-up for entertaining- featuring maple shaker cabinets, stainless appliances, granite counters, and an island. Hallway bedrooms are spacious and the updated hallway bathroom is tastefully appointed with a tub/shower combo. The primary suite offers a spacious retreat, complete with sliding door to the backyard. The ensuite primary bathroom has been updated with a stall shower, lots of storage, and an enviable walk-in closet. Laminate floors, and brand new carpet. Dual pane windows, composition roof, tankless water heater. Outside, the backyard offers a large covered patio space with ceiling fans, which is the perfect place to enjoy coffee and conversation, or for al fresco dining while entertaining guests on a crisp evening. Big yard with lots of sunny space to garden or play. The front yard features drought-resistant landscaping. 2-car garage. Extra-wide driveway and huge side gate offer lots of space for your toys or recreation vehicles. All this is located conveniently near schools, parks, and shopping. Don't wait! Offered at $499,000. For more photos and a 3D virtual tour, please visit 6922 Linda Sue Way, Fair Oaks, CA 95628.

New Listing - 4514 Cedarwood Way, Sacramento, CA 95823

This impeccable home offers the perfect blend of comfort, convenience, and luxury! You will love the open layout. Enter to find a spacious living room with large sunny windows, which opens to the large dining space and kitchen. The open, remodeled kitchen is the perfect set-up for entertaining, featuring white cabinets, Corian countertops, tile backsplash, recessed lighting, stainless appliances, and a breakfast bar area. Hallway bedrooms are spacious and the updated hallway bathroom is tastefully appointed with a tub/shower combo and pedestal sink. The primary suite offers a spacious retreat, complete with a large closet. The ensuite bathroom has been updated with a luxurious step-in stall shower. Outside, the front yard features an adorable white picket fence, mature landscaping, and an adorable decorative pump. The backyard offers a large covered patio space, which is the perfect place to enjoy coffee and conversation, or for al fresco dining while entertaining guests on a crisp evening. Big backyard with lots of sunny space to garden or play. Dual pane windows, composition roof with 2-year certification. 2-car garage. All this is located conveniently in Elk Grove Unified School District, near schools, parks, and shopping. Don't wait! Offered at $449,900. For more photos and a 3D virtual tour, please visit 4514 Cedarwood Way, Sacramento, CA 95823.

New listing - 8833 Water Song Cir, Roseville, CA 95747

Welcome to Sienna Woods, a serene gated community by JMC Homes in Roseville! This beautifully renovated home offers stylish and functional living space. The home was renovated top to bottom in 2021-2022. The remodeled kitchen is the perfect place to refine your culinary skills, and features an updated kitchen with marble counters, stainless steel appliances, a center island, lots of counter space, and a large pantry. Enjoy separate living and family rooms, formal dining room (currently used as a game-room), plus an upstairs loft ideal for a home office. One bedroom and full bath are located downstairs. The downstairs bath has been remodeled with a tiled floor and shower, and marble counters. Upstairs, the spacious primary suite has a luxurious ensuite bathroom including jetted tub, stall shower, dual sinks, marble counters, and a walk-in closet. Large upstairs hallway bedrooms, and the upstairs hallway bathroom boasts dual sinks, a tiled tub/shower surround, and marble counters. The landscaped backyard is the perfect place for al fresco dining on a crisp evening, and features a lovely retaining wall, new concrete patio, tuff shed, and plenty of plush grass to garden or play. HUGE garage is 2-cars wide and extra deep! Close proximity to award-winning Roseville schools. Don't wait! HOA dues is $85/monthly. Offered at $835,000. For more photos and a 3D virtual tour please visit 8833 Water Song Circle, Roseville, CA 95747.

Ready to Downsize or Relocate? What Sellers in Carmichael, Fair Oaks, and Arden-Arcade Should Know...

If you’re a longtime homeowner in Carmichael, Fair Oaks, or Arden-Arcade, you’re not alone in thinking it might be time for a change. It seems that lately I have been chatting with several homeowners in these areas who are exploring the idea of downsizing or relocating -- whether it’s to be closer to adult kids (and let's be real -- it's the grandkids), to reduce maintenance (who wants to maintain that huge yard in retirement when you could travel instead?), cash-in on equity (many own free-and-clear), or simply live in a space that better fits their current lifestyle (who needs 4 bedrooms when it's just you?). 

I feel like these are repeating themes in conversations I am having...

These long-established neighborhoods are filled with charming ranch-style homes, known for their single-level layouts, large yards, and generous square footage. But as life evolves, a home that once felt “just right” can become a lot to manage. Here’s what you need to know if you’re thinking about making a move. 

• Your Home May Be Worth More Than You Think. These areas are in high demand with buyers looking for spacious lots, mature trees, mid-century character, and San Juan Unified Schools. I personally love ranch-style homes (I live in one myself), and they are abundant in these neighborhoods...many buyers want a home they can personalize. Even if your home hasn’t been updated recently, its location and layout may be incredibly appealing to today’s buyers — especially with the right preparation and pricing strategy. 

• Proposition 19 Could Save You Thousands in Property Taxes. One of the biggest concerns I hear from long-time homeowners is property tax -- spoiler alert: It's low if you have owned your home for a while. But thanks to California Proposition 19, if you're 55 or older, you can transfer your current low property tax base to a new home anywhere in California, even if the new home is more expensive. This is a game-changer if you’re considering a move but worried about your tax bill skyrocketing. 
• Highlights of Prop 19 for Sellers: 
• Available to homeowners 55+, those with severe disabilities, or victims of natural disasters. 
• You can transfer your tax base more than once. 
• Applies when buying any type of property in California (not just within your current county). 
• Must move within 2 years of the sale of your original home. 
• I'd strongly recommend chatting with your CPA or tax advisor...I can refer you to tax experts who specialize in Prop 19 scenarios. 

• Smart Updates Can Help Your Ranch-Style Home Shine. Ranch homes are timeless, but small touches can go a long way in helping them appeal to today’s buyers. Here’s where to focus if you want to maximize your sale price without doing a full renovation (and I have a full slate of resources to deploy to help you do this): 
• Pre-listing inspections are key, BEFORE doing any renovation. Sometimes just inspecting, disclosing, and selling "as-is"  makes way more sense than making repairs...every situation is different, so let's strategize which is best for you. 
• Enhance curb appeal: Trim landscaping, add fresh mulch, and paint the front door in a modern tone. 
• Open up sightlines: If feasible, thinning out some decor or furniture is best to help the home flow and feel more open. 
• Update lighting: Swapping out outdated fixtures for sleek, modern styles gives the entire home a lift. 
• Paint smart: Stick with neutral tones — think soft greiges, warm whites, or sage green — that complement mid-century ranch design. 
• Flooring counts: If you have old carpet, consider replacing it with vinyl plank or hardwood to highlight the open layout. I am often asked about having old carpets professionally cleaned -- this is often a HUGE mistake (if you do not want to replace flooring, usually it is best to leave it alone).
• These touches help buyers visualize the potential without overwhelming them with a big renovation project. 

• You're Not Just Selling a Home — You're Starting a New Chapter. Whether you’re thinking of a low-maintenance condo, a home closer to grandkids, the RV life, or retiring to a resort town, this transition should feel exciting — not stressful. I work with homeowners every day, and I try to make the process as simple as possible. Any my clients are all asking the same questions: “Should I sell as-is or do some updates first?” “Where do I even start with downsizing?” “How do I coordinate selling and buying at the same time?” I’m here to guide you every step of the way — from preparing your home for market to connecting you with downsizing resources, moving help, and trusted tax professionals. I also know other realtors all over the United States and can help connect you with one in the area where you would like to move.

Let’s Talk About Your Next Move. If you're considering selling your Carmichael, Fair Oaks, or Arden-Arcade home, let’s schedule a chat or in-person consultation. I’ll provide a market analysis, help you review your options under Proposition 19, and help you explore what downsizing or relocating might look like for you. 📞 Call/Text me at 916-342-1372 📧 Email: erin@erinstumpf.com 

Your next chapter might be closer than you think — and it starts with a conversation.