Blog photo: This is autumn to me. Instead of falling leaves we have empty chairs. I took this photo along the Newport Beach ocean front ‘board’ walk while on a bike ride with a friend, between Balboa Island and the Santa Ana River Jetty. I usually go to or beyond the Huntington Beach pier but this was leisurely and full of chat. In summer when I was down for a high school reunion, the same sidewalk was people-packed and a zoo. With a backyard of beach, plenty of parking, and room to breathe, I like to say the natives have reclaimed their land. And these gorgeous Adirondack chairs beg for the owners to come out with a beverage, book, and bonnet, to rest their behinds, waiting for the sunset show, surely to come.
This past year has been fairly full of trips to Newport due to our dad’s aging issues. It was a treat when it was possible to get some alone outdoor time down there. Since his passing a few weeks ago, there will be some other new normal.
Blog post: I thought it might be helpful to explain an entry in the status of listings (below) this week that we don’t see too often. AC is not alternate current. In real estate it means ‘active, contingent’. And that means the listing is still available BUT there is a sale CONTINGENT on the sale of the Buyers’ property.
Well, you might think, how can it be available for others if somebody has it tied up in a contract? Good question. I’m glad you asked it. Chances are the property may have been on the market for a while. The Seller may be willing to take an offer that is contingent on the Buyer closing their current home. BUT!
Some consideration most likely would be given to just what the status of the Buyer’s property really is. Has it had offers? Is it in a contract now? Have the Buyers of the ‘down-leg’ property removed any of their contingencies? Who’s the lender? How’s that financing coming along? Are all the players on the same page? Are they cooperating together?
Depending on all those and more circumstances, the Buyers typically have been given a set number of days to remove the sale contingency. If unable to do so (their own Buyer can’t perform, or needs more time, or drops out), then when that time limit hits, the Buyers either remove the sale contingency or back out. Of course, the Buyers could ask for an extension of time in order to make progress on the sale of their existing home. And if the Sellers don’t have any other parties in a back up position to slide into contract, that might be a possibility.
Upside…it can be a win/win. Downside…it can tie up the upleg Sellers’ house and some other viable Buyers may walk on by. Showings are always fewer with an AC status.
I know I wrote about this once before but we had an amazing set of AC homes all tied into the same transaction. You need to remember, the Buyer at the bottom of the pole has the most power….unless you were my sellers/buyers… in the middle of the group. My clients didn’t want to pay for a new foundation on their place and we were at a standstill. Then everybody did the math and figured out how to chip in some $ and I think we matched what my Sellers needed to pay in the form of a credit or hold-back.
Here’s how it went down: Sellers in the Community of Harbor Bay Isle wanted to move out of the area, across the bay. My clients wanted to buy that house on Coleport Landing but had to sell their east end Victorian on Lincoln. The people who wanted Lincoln had to sell the house right behind Lincoln on Johnson. Johnson had a buyer who lived on I think, Fountain. And Fountain had a buyer with nothing to sell. It was all done with Harbor Bay Realty agents, all done at the same title company, Placer Title, and all recorded the same morning. All done.
Of course there were some rent-backs by owners of their own houses since not everybody could move right away. That was all part of the negotiation process for the gang. And I’ve not been aware of a similar scenario since then.
Bottom line…we may be seeing more of this type of transaction along the road. Hopefully you’ll be involved with an agent or agents who have been there before.
ALAMEDA REAL ESTATE THIS WEEK…
Another busy week. Had a new listing on the Broker Tour…but I actually put 1557 Santa Clara on the market last Thursday. I’ll be there Sun 2-4 for an open house. Offers, if any to me by Tues noon. I’m still catching up on houses I haven’t seen so hope to do quite a few of them tomorrow and Sat by bike!
Selling? Think on These Things Wash Post
Condos get hammered by FHA rules and redtape LA Times
Underwater w/ a FNMA or Freddie Mac loan? you may be able to get a new lower loan rate. CNN Money
My squawk at our office meeting this week was…just how many people are going to want to keep financing an upside down house for how long? What’s the new normal? You know the new normal.
Unsold inventory this week 184, 190
Pending inventory this week 103, 104
Broker Tour this week… 11 with 1 repeat.
ALAMEDA REAL ESTATE AWARDS THIS WEEK…
Get me to Rehab – this one needs work but the comment in the mls says it ‘needs deferred maintenance.’ I guess the goal is to buy it and beat it up some more!