When buyers look at a home, they often focus on the layout, finishes, and location. But some of the biggest long-term factors affecting property value and ownership costs are energy, water, and job growth.
These issues can either become major value drivers or create serious problems if they are not properly understood during the transaction.
Energy: Solar Has Become Complicated
Energy efficiency is becoming increasingly important in California real estate, especially with rising utility costs. Solar can absolutely add value to a property, but agents and consumers must understand what type of solar agreement is attached to the home.
One of the biggest mistakes agents make is assuming all solar systems are the same. They are not.
Leased Solar
With leased solar, the homeowner does not own the panels. Instead, they lease the system from a solar company and usually make monthly payments over a long-term agreement, often 15 to 25 years.
When the home is sold, the buyer typically must qualify with the solar company and assume the lease, or the seller may need to pay it off before closing.
Power Purchase Agreements (PSA)
A Power Purchase Agreement, or PPA, allows the homeowner to pay only for the electricity produced by the system instead of paying for the panels themselves.
Depending on when the system was installed, homeowners may also receive credits for excess power generated. Older systems installed before April 15, 2023 may offer more favorable utility savings under California’s previous net metering structure, making them a potential selling advantage.
Owned Solar
Owned solar is generally the most attractive option because the panels transfer with the property as an asset. However, agents should verify whether the system is truly paid off, as many “owned” systems still have solar loans attached.
Whether representing the buyer or seller, agents should gather:
- Solar contracts
- Payoff information
- Transfer documents
- Utility bills
- Warranty information
Solar can increase a property’s value, but the wrong agreement structure can also hurt affordability and resale potential.
Water Matters More Than Ever
Water availability and infrastructure vary dramatically depending on location.
In urban areas, homes are typically connected to public water systems, but buyers should still understand average utility costs.
In rural areas, water becomes much more complicated. Buyers should ask:
- Is there a well?
- Has the well been tested recently?
- Is there enough water production?
- Is the property on septic?
- Will a perc test be needed for future development?
A property can have incredible views and acreage, but unreliable water can impact financing, insurance, usability, and future resale value.
Job Growth Drives Home Values
One of the most overlooked drivers of real estate values is local job growth.
Markets tend to strengthen when jobs, wages, and population growth increase. When businesses move into an area and employment opportunities expand, housing demand usually follows.
On the other hand, markets can weaken when employers leave or economic growth slows.
This matters because buyers are not just purchasing a home for today. They are making a long-term investment decision. Strong economic growth often supports stronger property values over time.
Join the Movement
If you’d like to learn more about energy, water, job growth, and the factors shaping today’s real estate market, or if you’re looking to launch or scale your real estate career with confidence, visit www.joinamenrealestate.com or join the SOAR Community at www.skool.com/soar.
You can also connect with me on Instagram at @jimamen for weekly tips, tools, and strategies designed to help agents grow their business and thrive in today’s evolving real estate landscape.
Jim Amen is the Founder and CEO of Amen Real Estate, a Northern California real estate team partnered with Real Broker, and the founder of the SOAR Community for real estate professionals. A top-producing broker with a background in residential and commercial real estate, Jim leads a team of more than 50 agents serving clients across Northern California from four regional offices.