Krista Becka | Arizona Real Estate and Lifestyle

Tag: Selling a Home

  • Leased Solar Panels and Your Scottsdale Home Sale

    Leased Solar Panels and Your Scottsdale Home Sale

    What happens to leased solar panels when you sell a home in Scottsdale?

    Leased or financed solar doesn’t convey like a roof or a pool. In Arizona, the buyer generally has to be approved by the solar company to take over your lease or loan, and the Arizona REALTORS® Solar Addendum makes the sale contingent on that approval. Lessors commonly take 30 to 60 days to process a transfer, while a standard Arizona escrow runs 30 to 45, so sellers who start the paperwork before they list are the ones who close on time.

    By Krista Becka, REALTOR® and Broker Associate | November 5, 2026

    Solar is one of the few items in a Scottsdale sale that can clear the inspection, the appraisal, and the buyer’s lender, then still stall the deal in the final two weeks. It usually isn’t because anyone did something wrong. The lease is a third-party contract, and nobody checked what the solar company needs until escrow was already running.

    Here’s how the Arizona process works, where the timeline breaks, and what to do before you list or write an offer.

    Why a solar lease isn’t like a pool or a roof

    Start with what you actually have. There are four common setups, and they behave very differently at sale:

    • Owned outright. The system is part of the property. It’s a feature, and you market it like one.
    • Financed with a solar loan. You own the system, but there’s a lien-style obligation. You either pay it off at closing or the buyer assumes it.
    • Leased. The solar company owns the panels. Your buyer has to take over the lease, or you end it.
    • Power purchase agreement (PPA). You pay for the power, not the panels. It’s treated like a lease at sale.

    Only the first one is simple. The other three are contracts, and a contract can’t be handed to a buyer without the other party’s say-so.

    Arizona REALTORS® handles this with its Solar Addendum, which attaches to the standard purchase contract. It makes the buyer’s purchase contingent on getting the lessor’s approval to assume the lease or loan. The form was revised in November 2025 after problems with solar companies going bankrupt, and the main change matters to you: the buyer now has to apply for assumption immediately instead of waiting until the inspection period ends.

    That’s a real improvement. It also means the clock starts the day you go under contract.

    The timeline problem that breaks deals

    Put the numbers side by side:

    • Inspection period: 10 days under the standard contract.
    • Escrow: typically 30 to 45 days from acceptance.
    • Lessor processing: commonly 30 to 60 days, depending on the company.
    • Approval deadline: under the addendum, no later than three days before close of escrow.

    If the buyer applies on day two and the lessor is slow, you’re already tight. If the buyer applies late, or the file needs more documents, you can end up asking for an extension you didn’t plan on.

    Where buyers fall short

    Most lessors run a credit check. The minimum score varies by company and is commonly somewhere between 650 and 700. Two things catch buyers off guard:

    • Debt-to-income. A lender may count the assumed lease payment in the buyer’s ratios. Local agents report deals where a $100 to $150 monthly lease payment was enough to push a borderline buyer out of qualifying.
    • Credit score fees. Some lessors will approve a buyer below their threshold if the buyer pays an added fee. The addendum gives the buyer the right to cancel instead of paying it, on a short clock. Check the exact window on your signed form.

    A transfer or assumption fee is also common now. The addendum has a spot to record who pays it, so negotiate it up front rather than assuming.

    If the buyer can’t be approved

    The contract is generally cancelled and the buyer’s earnest money is refunded. You’re then back on the market with a listing history buyers can see. Many leases also expect you to buy out the remaining term before closing if the transfer doesn’t happen. One local source puts typical buyouts at $5,000 to $15,000, with some above $20,000. Your lessor can give you a real payoff figure in writing.

    Scottsdale carried roughly 4.2 months of inventory in July 2026, according to the Scottsdale Area Association of REALTORS®. Buyers have choices, and a buyer who hits a solar snag won’t wait around if there’s a comparable home without one.

    What to do before you list

    If you’re selling a home with leased or financed solar, this is the order I’d work in:

    1. Pull your agreement and call the solar company now. Ask for the transfer packet, the transfer fee, the minimum credit requirement, the processing time, and a buyout quote. Get all of it in writing.
    2. Decide: transfer or buy out. Transferring keeps your costs low but narrows the buyer pool and adds time. Buying out costs cash up front but removes the contingency entirely. Run both numbers before choosing.
    3. Disclose it fully. Attach a complete copy of the lease or loan to your Seller’s Property Disclosure Statement, along with the monthly payment, remaining term, any escalator, and the company’s contact. If you’re also weighing a pre-listing home inspection, have the inspector document the system’s condition while they’re there.
    4. Price for the actual deal. A buyer assuming, say, a $140 monthly payment with 12 years left is evaluating a different home than one with owned panels. Your pricing should reflect that, and your remarks should explain it.
    5. Complete the Solar Addendum accurately. State who pays the transfer fee, and have the buyer’s lender look at the payment before the offer is final, not three weeks into escrow.
    6. Build the timeline backward. Work from the closing date, subtract the lessor’s processing time, and confirm the buyer’s application date is on the calendar.

    If you’re the buyer

    Apply for the assumption immediately after you’re under contract, and ask these before you write the offer:

    • How old is the system, and does it include battery storage?
    • When does the lease end, and what are the payoff terms?
    • Is there a grandfathered utility plan that transfers, or does it reset?
    • What does the lease say about roof repairs and system removal?
    • Has your lender confirmed the payment fits your ratios?

    Arizona’s own addendum lists items like age, battery storage, end-of-lease terms, grandfathered utility plans, and grid tie-in as things to investigate within the allotted timeframe. Brokers aren’t solar experts, so have your lender, your CPA, or the solar company confirm the numbers that matter to you.

    Every situation is different. The right answer for your home depends on your lease terms, your price point, and how quickly you need to close. That’s exactly what I walk clients through before we list.

    Frequently Asked Questions

    Do leased solar panels convey with a house in Arizona?

    Not automatically. Leased panels belong to the solar company, so the buyer has to be approved to assume the lease, or the seller has to end it. The Arizona REALTORS® Solar Addendum makes the buyer’s purchase contingent on that approval.

    How long does a solar lease transfer take in Arizona?

    Providers commonly take 30 to 60 days to process a transfer, and a standard Arizona escrow runs 30 to 45 days from acceptance. That gap is why the buyer should apply immediately after going under contract.

    Can a buyer back out if the solar company won’t approve them?

    Generally yes. Under the addendum, if the buyer can’t obtain approval on the terms of the existing lease or loan, the contract is cancelled and the buyer is entitled to their earnest money. Confirm the exact wording and deadlines on your signed contract.

    Should I pay off my solar lease before I sell?

    It depends on the buyout figure, your buyer pool, and your timeline. A buyout costs cash but removes the contingency and widens your audience. Get a written payoff quote from the lessor and compare it against the cost of delay and a smaller buyer pool before you decide.

    If you own a home with leased solar and you’re thinking about selling, schedule a consultation at kristabecka.com/contact — I’m happy to walk you through the transfer timeline before it affects your closing date.

    About Krista Becka

    Scottsdale Realtor Krista Becka helps buyers and sellers across Scottsdale, Arcadia, Paradise Valley, and Greater Phoenix make confident moves. For nearly two decades she’s guided move-up buyers and sellers, relocation clients, and investors, protecting equity and helping clients avoid costly mistakes. A Broker Associate with Compass, Certified Luxury Home Specialist, and Certified Negotiation Expert, Krista blends data-driven pricing with hyperlocal insight and concierge-level service. Connect with Krista at kristabecka.com

    Estimated reading time: 7 minutes

    Home » Selling a Home
  • Off-Market vs. On-Market Listing: Which Is Better?

    Off-Market vs. On-Market Listing: Which Is Better?

    The debate over off-market vs. on-market listings has taken center stage in the real estate industry. Major companies, including Compass and Zillow, have publicly disagreed over when, where, and how homes should be marketed.

    Although industry policies continue to evolve, sellers should remain focused on a much more important question:

    Which marketing strategy will best support your personal and financial goals?

    How broadly your property is exposed can directly affect buyer demand, negotiating leverage, contract terms, and ultimately your net proceeds. For most sellers, the decision comes down to one central consideration:

    Is your priority maximizing your sale price, or do your circumstances require you to place greater value on privacy, convenience, or control?

    What Is an On-Market Listing?

    An on-market property is generally listed in the Multiple Listing Service, commonly called the MLS, and marketed broadly to the real estate community.

    The listing can then be distributed through MLS-connected websites and major consumer home-search platforms such as Zillow, Realtor.com, and Redfin, depending on the seller’s instructions and applicable MLS settings.

    This approach gives the property access to the widest available pool of buyers and buyer representatives. The objective is to generate maximum awareness, create competition, and give the market an opportunity to determine the property’s value.

    What Is an Off-Market Listing?

    “Off-market” does not refer to one specific marketing method. It encompasses a range of strategies with varying levels of exposure.

    An off-market strategy may include:

    • Private marketing within an agent’s or brokerage’s internal network
    • A “coming soon” or pre-market period before the listing becomes fully active
    • Direct outreach to specific qualified buyers or real estate agents
    • An office-exclusive listing shared only within one brokerage
    • A traditional pocket listing with extremely limited visibility

    Some sellers are not choosing to remain off-market indefinitely. Instead, they may use a controlled pre-market period before launching the property to the broader market.

    That distinction matters. A limited pre-market strategy can serve a legitimate purpose, but it should be used intentionally, not simply because it is convenient for the brokerage or listing agent.

    When an Off-Market Strategy May Help

    Privacy or Security Is a Genuine Priority

    Some sellers have valid reasons for limiting public exposure. These may include personal safety, security concerns, sensitive family circumstances, divorce, illness, a high-profile occupation, or a desire to keep interior photos off public websites.

    Other sellers simply want fewer people viewing their home online or walking through it in person.

    In these situations, the benefits of privacy may outweigh the potential financial advantages of broader exposure.

    You Need Greater Control Over Timing

    A private or pre-market period may be helpful when the home is not quite ready for a full public launch.

    For example, you may be:

    • Completing repairs or renovations
    • Waiting for staging or professional photography
    • Coordinating travel or an upcoming move
    • Working around children, pets, or tenants
    • Preparing another property for purchase
    • Managing a sensitive transition

    A carefully structured private-first strategy can reduce disruption while allowing an agent to begin identifying potential buyers.

    You Want Early Feedback Before a Full Launch

    A limited pre-market period may provide an opportunity to collect early feedback about pricing, condition, presentation, and buyer interest.

    It may also allow the seller to gauge demand before the property begins accumulating publicly visible market history.

    However, early feedback must be interpreted carefully. A small private audience does not necessarily represent the broader market, and limited interest during a private phase does not automatically mean the property is overpriced.

    Your Agent Has a Demonstrable Buyer Pool

    An off-market strategy may be effective when the listing agent can identify a credible group of qualified buyers whose needs align with the property.

    There is an important difference between an agent vaguely claiming, “I may know someone,” and an agent presenting a documented outreach strategy involving financially qualified buyers and cooperating agents.

    The seller should understand:

    • How many prospective buyers will be contacted
    • How those buyers were identified
    • Whether they are financially qualified
    • How buyer feedback will be collected
    • How long the private phase will last
    • What will trigger a transition to the open market

    Without a clear plan, a private listing can become an extended period of limited exposure without providing a meaningful benefit to the seller.

    When an Off-Market Strategy May Cost You

    Reduced Exposure Can Reduce Competition

    Competition is one of the strongest tools a seller has.

    When more qualified buyers know about a property, the seller has a better opportunity to receive:

    • A higher purchase price
    • Multiple offers
    • Stronger earnest money
    • Fewer inspection demands
    • More favorable appraisal terms
    • A preferred closing timeline
    • A post-possession or rent-back agreement
    • Greater leverage during negotiations

    An off-market offer may appear attractive when viewed in isolation. The problem is that the seller may never know whether another buyer would have paid more or offered better terms.

    Broad exposure does not guarantee multiple offers or an above-list sale. It does, however, give the market a more complete opportunity to respond.

    Limited Marketing Can Weaken Price Discovery

    Price discovery is the process of determining what buyers are genuinely willing to pay for a property.

    A full-market launch creates several useful data points, including:

    • Showing activity
    • Online views and saves
    • Buyer inquiries
    • Second-showing requests
    • Open-house attendance
    • Feedback from buyer representatives
    • Offer volume and quality

    Together, these signals help a seller determine whether the property is positioned correctly.

    Feedback from a small private audience can be useful, but it can also be misleading because the sample size is limited. A handful of buyers may not accurately represent how the broader market will respond.

    The Buyer May Have More Leverage

    When a buyer knows that few other people have seen the property, there may be less urgency to submit a strong offer.

    The buyer may assume there is limited competition and attempt to negotiate more aggressively on price, repairs, concessions, financing terms, or the closing timeline.

    Even when an off-market offer seems convenient, sellers should evaluate whether that convenience comes at the expense of negotiating leverage.

    The Strategy May Benefit the Brokerage More Than the Seller

    Private inventory can be valuable to a real estate company because it attracts buyers, creates recruiting opportunities, and keeps more transactions within the same brokerage.

    That does not automatically mean a private strategy is wrong. It does mean the seller should ask whether the recommendation is primarily designed to advance the seller’s interests.

    A marketing strategy should be selected because it supports the homeowner’s goals, not because it benefits a particular agent, brokerage, website, or business model.

    Questions Sellers Should Ask Before Going Off-Market

    Before agreeing to limited exposure, ask your agent:

    1. Why are you recommending an off-market strategy for my property?
    2. How many qualified buyers will have access to the listing?
    3. Will agents outside your brokerage be able to find it?
    4. Where will the property appear online, if anywhere?
    5. How long will the private marketing period last?
    6. How will we determine whether the strategy is working?
    7. What information or market history will become publicly visible?
    8. What is the plan if we do not receive an acceptable offer?
    9. How could limited exposure affect my sale price and contract terms?
    10. How does this strategy benefit me rather than the brokerage?

    A knowledgeable agent should be able to answer these questions directly and explain both the benefits and the potential tradeoffs.

    The Bottom Line

    An off-market listing can be a useful strategic tool when privacy, security, timing, or convenience is more important than achieving the greatest possible market exposure.

    However, broad on-market exposure remains the most reliable way to reach the largest buyer pool, encourage competition, establish market value, and preserve negotiating leverage.

    Neither strategy is automatically right for every seller.

    The best approach depends on:

    • Your desired level of privacy
    • Your timing and moving plans
    • The condition and readiness of the property
    • The depth of the available buyer pool
    • Current market conditions
    • Your tolerance for showings and public exposure
    • Your financial priorities

    If you are considering selling your home and would like a clear, no-pressure recommendation, schedule a consultation. I will walk you through your options and create a launch strategy based on your property, timeline, and financial goals.

    Frequently Asked Questions

    Do Off-Market Homes Sell for Less?

    Not necessarily. An off-market home can receive a strong offer, particularly when the property is unique or the agent has access to a qualified buyer who is willing to pay a premium.

    However, with limited exposure, the seller has less information about what the broader market might have offered. This makes it more difficult to confirm whether the seller received the highest attainable price and best available terms.

    Does a Coming-Soon Listing Count as Off-Market?

    It depends on how the listing is entered and marketed.

    Some MLS systems offer an approved coming-soon status that allows limited promotion before showings begin. A property marketed only through a private brokerage network may operate differently. The applicable rules depend on the local MLS and the specific marketing methods being used.

    Can I Try Selling Privately Before Listing on the MLS?

    In some circumstances, yes. A seller may authorize a limited private-marketing period before the property is introduced to the broader market.

    The agreement should clearly define the duration, intended audience, pricing strategy, permitted marketing, and conditions that will trigger the full public launch. Public promotion may also activate MLS submission requirements, so the strategy must comply with applicable local rules.

    Will My Home Accumulate Days on Market During a Private Phase?

    A property marketed exclusively outside the MLS will not accumulate official MLS days on market during that period. This also applies to properties marketed as a Coming-Soon listing entered in the MLS.

    Is an Off-Market Listing More Private?

    It can be, but “off-market” does not always mean confidential.

    The property may still be shared with buyers, real estate agents, brokerage networks, vendors, photographers, or selected websites. Sellers who require discretion should ask exactly who will receive the property information, whether photos will be used, and whether the listing can be forwarded or redistributed.

    Is On-Market Usually the Best Choice for Maximizing Price?

    For most sellers focused primarily on achieving the highest price and strongest terms, broad market exposure generally provides the best opportunity to create competition.

    There may be exceptions, but sellers should approach claims of a guaranteed off-market advantage carefully. No agent can know with certainty what the entire market would pay without exposing the property to that market.

    About Krista Becka

    Krista Becka is a Broker Associate with Real Broker who helps buyers and sellers throughout Scottsdale, Paradise Valley, Arcadia, Phoenix, and surrounding communities make informed real estate decisions. With nearly two decades of experience, she specializes in luxury homes, relocation, move-up buyers and sellers, and strategic pricing. As a Certified Luxury Home Specialist (CLHMS), REAL Luxury member, and Certified Negotiation Expert (CNE), Krista combines data-driven analysis with concierge-level service to help clients maximize their results.

    Schedule a consultation at kristabecka.com/contact