Contingencies

Hey, did you make it to the Fair this weekend? Boy, it’s one of
the events making this the best county in California! But what was
up with the battered, deep-fried Snickers bars and Twinkies? Whoa,
doggies
…I get the willies just thinking about them. I’m not even sure
they qualify under the category

food stuffs.

Anyway, if you weren’t out at Bolado Park to enjoy the
livestock, the entertainment, the wine tasting, the competitions,
and the lovely quilts, make sure you mark it down on your calendar
for next year.
Hey, did you make it to the Fair this weekend? Boy, it’s one of the events making this the best county in California! But what was up with the battered, deep-fried Snickers bars and Twinkies? Whoa, doggies…I get the willies just thinking about them. I’m not even sure they qualify under the category “food stuffs.” Anyway, if you weren’t out at Bolado Park to enjoy the livestock, the entertainment, the wine tasting, the competitions, and the lovely quilts, make sure you mark it down on your calendar for next year.

This week in real estate was similar to the past month or so. We have a standing inventory of 200 available single-family properties, a number fairly constant for the last quarter. Twenty single-family dwellings were listed and 11 closed escrow. Twenty-three owners accepted offers: Only three of these homes were above $450,000. Five listings expired without selling, and one cancelled. Twelve buyers removed contingencies and are waiting to close.

What are contingencies, and when do they get removed? When you make an offer on a home, you normally have walked through it once or maybe twice. That certainly isn’t much time at all to consider what is probably the largest financial investment you’ll ever make!

To protect the buyer, the offers are made contingent upon various events occurring. Let’s look at the most common types of contingencies: inspection; home sale; and financing.

As a seller, you disclose information about the property. As a buyer, you inspect whatever concerns you. Common inspections are pest, whole home (which covers everything from roof to basement), roof, electrical, plumbing, structural, septic, swimming pool and spa, and soils. Once these inspections are completed, the seller and buyer negotiate which items (if any) are to be repaired or replaced. When all parties are in agreement as to the condition of the property, the inspection contingency is removed.

You might purchase a home before you have sold your existing one. In this situation, the transaction is contingent upon you being able to close escrow on your current home. Some sellers do not want to consider offers with a home-sale contingency; others are willing to work with you.

The most common type of contingency is financing, because very few of us have enough in our bank accounts to purchase a home outright. (And if you had all that money, you’d probably rather spend it on fried Snickers, right?) So most buyers have to get a mortgage. Even if you’ve taken the good advice of your local Realtor and gotten pre-approved for a home loan, the final funding of that loan will be dependent upon the chosen property appraising for what you’ve agreed to pay for it, and – most likely – a final check of your credit rating.

So when Realtors talk about a home being “Pending Show” it means the buyer and seller have agreed upon a price but still have to agree on repairs, the buyer is working on a loan and perhaps on the sale of a home. If the home is “Pending,” it generally means all these types of conditions, or contingencies, have been removed and the clock is just running until the contractual date for close of escrow.

Have a great week, and be kind to your Realtor!

Nants Foley is a Broker Associate with Coldwell Banker in Hollister. Contact her at 831-630-1300 or email [email protected]

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