Did you miss me last week? I missed you, but I’m back with
another market summary for you for the week. First let’s look at
San Benito County. We had 23 new listings for single-family
residences, ranging in price from $499,000 to $1,399,000. There
were five cancellations, but two of those were re-listed. Sales
contracts were accepted by 11 buyers, with one containing a release
clause. The inventory stands at 199, ranging from $379,900 to
$4,500,000.
In South County (Gilroy and Morgan Hill), the inventory is 293.
Last week we saw 45 new listings ranging from $499,000 to
$3,500,000. There were nine cancellations and six expirations.
Sales contracts were arranged on 23 properties, with release
clauses on five of them.
Did you miss me last week? I missed you, but I’m back with another market summary for you for the week. First let’s look at San Benito County. We had 23 new listings for single-family residences, ranging in price from $499,000 to $1,399,000. There were five cancellations, but two of those were re-listed. Sales contracts were accepted by 11 buyers, with one containing a release clause. The inventory stands at 199, ranging from $379,900 to $4,500,000.
In South County (Gilroy and Morgan Hill), the inventory is 293. Last week we saw 45 new listings ranging from $499,000 to $3,500,000. There were nine cancellations and six expirations. Sales contracts were arranged on 23 properties, with release clauses on five of them.
Let’s send good wishes to all of the people involved in those transactions, hoping the process is smooth and trouble-free. But what happens if something does go south? Let’s say the parties come to an impasse. Whoa, doggies! What happens then?
You will need to refer back to your sales contract. If your agent did a good job (as he or she will have done if you have a good relationship) you will have been given your choice to choose mediation and arbitration in this situation. You could accept or decline the arbitration, though mediation is mandatory. Let’s explore what each one means.
Mediation is a problem-solving technique whereby a neutral third party – without the authority to impose a settlement – helps negotiate a resolution of the disagreement. Typically mediation begins with each party expressing a point of view. The mediator will identify the issues, look for similarities in assumptions, and propose new ways of looking at the issues.
California law does not require licensing or certification for mediators, though most have training and experience. But any person can be used as long as they have no interest in the outcome. Mediation costs vary depending on who is selected. Fees are usually divided between the disputing parties. Mediators can be found by contacting the California Department of Consumer Affairs at http://www.dca.ca.gov/ or by calling (800) 952-5210.
Mediation allows the people involved to retain control of the process, rather than giving it over to lawyers and judges and inflexible procedures. The dispute can be resolved in any creative manner they see fit, and an agreement can be drawn up and signed by all parties.
OK, but you’re in a dispute with the world’s most unreasonable person. So mediation, of course, will be unsuccessful. You have to move on to arbitration if you and the other party both chose that option when creating a purchase agreement.
Arbitration is another dispute resolution also occurring outside of the court system. During arbitration the parties submit arguments and evidence to a neutral person, known as an arbitrator. Unlike mediation, the arbitrator renders a decision, called an award, which is as binding as if it were given in a court of law.
Why would you, as either a buyer or seller involved with some crazy maniac in a transaction from hell, want to select arbitration over suing the pants of the lunatic? First of all, our courts are backlogged with cases and lawsuits. You will be tied to this person in some way until it is all resolved, and you probably want to limit the time to preserve your own mental health.
The litigation system has many delays and odd occurrences which create financial and emotion problems for even the hardiest of souls. Imagine what it can do to that other guy who is taco short of a combination plate? Arbitration is usually completed in a month or two. Because of this, costs are less than litigation.
Arbitrations are private. Testimony and information is not aired in public. That could be a good thing. Arbitration awards are final and legally enforceable. However, there is a limited right to appeal an arbitration award.
Your decision concerning arbitration is important, and could have long-lasting implications. Make sure when you are signing a sales contract you read the entire arbitration clause before you initial it. If you don’t understand it, get more information. If you’re interested in knowing about it now, before you need to make a decision, contact your local Realtor. If you don’t have one, shoot me an e-mail and I’ll send you additional information.
A final few words about the real estate market overall. The mortgage rates had been inching down, but they took a small jump up last week. They are still historically fabulous rates. We are all fortunate to live in an area so beautiful and comfortable that lots of people dream of coming here. Because of this, real estate, even with the high costs today, remains a wonderful investment. If you currently do not own your own place and would like to plan to do so in the future, call a Realtor (the trade name of real-estate agents who belong to the National Association of Realtors). If you do own, and you would like to increase your real estate holdings, guess what? Call a Realtor. We’re good for more than just a transaction.
And be kind to your Realtor.
