Risks of Removing Buyer’s Contingencies

Typical real estate offers include a wide variety of standard contingencies. These can include home inspections, appraisal, and loan approval. In a fast-moving, seller’s market, one of the ways to make an offer more appealing is to remove contingencies.

Real estate contingencies are intended to protect the buyer from unforeseen issues. Once these contingencies are removed, the buyer typically has no recourse from these issues. The most important contingencies include:

• Home Inspections – including mold, well/septic, structural, geological
• Lending Approvals – including appraisal, title, loan rate and terms, final loan approval
• Property Condition – this relates to the final walk-through, ensuring the property has been maintained during the escrow period

Any, or all of these items can create problems during, and even after, the closing period. Without the contingencies in place, the buyer is obligated to conclude the sale and any financial costs incurred by the seller for not doing so, including the forfeiture of their deposit.
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Most of the United States is experiencing an advancing market. This means prices are rising at a steady pace. As a result, both buyers and sellers expect to settle on a sales price higher than recent, comparable sales. Buyers are desperate to have offers accepted and are willing to compromise on contingencies designed to protect them. Ensure you thoroughly review all contingencies or the waiver of them with your agent prior to making an offer. Along with your agent it is important to speak with your loan officer and understand the loan risks involved and how removing contingencies could affect you from getting your loan approved.

Hunting for a New Home? Don’t Wait Until Saturday! 
 
House hunting has become a contact sport over the past year. The idealized vision of a leisurely Saturday morning reviewing open houses and plotting the day’s tours over lattes and croissants is a thing of the past. While popping into the local open house might be fun for the casual looker, if you are serious about finding your next home, this climate demands strategy.

First and most importantly, know exactly what you need and want in a new home. Then share this vision in detail with your agent. Identify not only what you need in the property, but which communities would best fit your lifestyle. With lower inventory from which to choose, you also need to be clear about any compromises you are willing to make—if any.
Once you know what you’re looking for, the next step is to clear some time during the week for house hunting. That’s right, mid-week.

In fact, for those searching for open houses, Thursdays are the best days to tour a community. Thursdays have always been the traditional days for agent open houses. This is when real estate professionals take time to tour new listings, but they are open for buyers also. This can allow serious buyers to view and write offers on new listings before the weekend crowds.
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Strategy is critical in a seller’s market. Serious buyers need to prioritize their search to position themselves ahead of their competition. Being available to see new listings as soon as possible is one way to ensure you don’t lose out on an opportunity to write an offer on the right home.

It used to be that couples first got married, and then bought a home together. No more! Modern couples no longer consider marriage a prerequisite for buying a home together. Buying a property together can complicate either a breakup or a divorce if not considered upfront.
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No one likes to think about the end of a relationship, but buying a home is a huge investment – not only in the relationship but financially. The partners may have differences in income, down payment, and contributions to the home. In the event of a separation, how will these issues be addressed? In other words, what happens if you break up?

The easiest way to ensure that everyone is protected is the title. Most married couples opt for Joint Tenancy that provides each homeowner an equal interest in the value of the property. The assumption is that marriage involves a merging of income and assets.

For couples who plan to keep their finances separate, a better option could be a Tenancy in Common. This form of title provides each owner with a separate, transferrable interest in the property. The interest does not need to be equal to the other; this could give one a larger interest if they contribute more financially. The interest can also be sold or inherited separately.

Don’t let the excitement of a home purchase keep you from considering the future. Before closing on that dream home together, consider the exit strategy – just in case.

A somewhat unexpected trend this past year has been an increased interest in owning houseplants. Decades ago, our parents’ homes were filled with pots of ferns, flowers, and even trees. This décor element is back! No longer are plants relegated to the herb pot in the kitchen. As we strive to use more natural décor products, homes are once again filled with living design features. But have you gone too far?

10 Signs You Have Too Many Houseplants

1. You live in a jungle–Boho designs often include plants, but if you’re pushing aside leaves to walk around your home, you’ve gone too far.
2. You panic when you see a dead leaf–Remember, leaves do die to make room for new growth.
3. You have “plant babies” – Do you hire a plant-sitter for weekend trips?
4. Your plants have names – Are you inviting friends to a Zoom birthday for your rhododendron? This could be a problem.
5. You have a plant wall–Have you replaced your bookshelves or family photos with a wall of plants?
6. You talk to your plants–As long as they don’t talk back ,you could still be okay.
7. You post throw back plant pictures–Nobody needs to see your monthly plant milestone pictures on social media. “Remember when it was just a little seedling? Aww...”
8. You take plant family selfies–You might have too many plants if every selfie includes your plant family.
9. You have a plant tattoo–Is your favorite plant immortalized on your forearm?
10. You have a favorite plant – Enough said, you have too many plants.

​It’s good to “go green”; houseplants can purify our air, improve our mood, and bring a taste of the outdoors inside. But if your home looks like it needs trimming—or mowing—you may have too many houseplants.

A rental deposit against damage is a standard part of all housing rental agreements. The purpose of the security deposit is to protect the landlord from loss in the event the tenant does not take proper care of the property. Most renters don’t even think about it when they sign a new lease, assuming they will get their entire deposit back when they move out.

So, it often comes as a surprise when the refund amount is lower than they paid when they signed the agreement. Many renters are surprised to find out what the landlord can deduct from their deposit. Here are some common items that the landlord can charge to renters when they leave:

• Non-Payment of Rent – This should seem obvious; if the tenant leaves before the lease is up or simply owes back rent, the landlord can deduct or keep the deposit to compensate.

• Unpaid Utilities – Utility companies will hold the landlord responsible for unpaid bills, so if the water or electric bill has been unpaid, they will deduct this from the security deposit.

• Unusual or Excessive Cleaning – While normal wear and tear are not deductible, excessive cleaning can be charged to the renter.

• Damage – This also should be obvious. This was the main purpose of the deposit.

• Trash and Other Items Left Behind – Renters should think twice about leaving that old patio furniture behind. Any cost to remove and dispose of anything left in the property can be charged against the deposit.

Finally, breaking the lease for any reason could put your deposit at risk. Renters need to educate themselves about the risks to their deposit and read the lease carefully for any specific terms included by the landlord. This can help renters avoid the shock of a smaller-than-expected refund check.



Disclaimer: this is not legal advise nor is it an offer to lend.this is for information purposes only.

During the past couple of months, families have been asked to stay at home. It can be challenging to keep everyone entertained when we aren’t able to go out of the house except to work in essential jobs, enjoy fresh air, and get groceries. Luckily, there are plenty of fun activities that the entire family can do together at home. Here are a few to inspire your own family to make lasting memories while spending quality time together at home.

1. Movie Night—This is a simple activity that everyone will enjoy. Every time you have a movie night, let a different family member pick their favorite. That way, everyone will have a turn choosing something to watch in the coming weeks. Better yet, consider a movie marathon over the weekend and allow each family member to choose one leg of the marathon. Don’t forget to bring popcorn and treats. In fact, make it part of the activity and make a delicious treat as a family to share during the movie.
2. Homemade Pizza—Many families have a tradition of ordering pizza once a week (or when no one feels like cooking). Do things a little different while you’re all at home together and learn to make pizza at home. Choose one type that everyone enjoys, or let everyone make a personal-sized pizza and add whatever toppings they’d like. Learning to make pizza at home is also an excellent opportunity to teach your kids a new skill.
3. Backyard Camping—Just because you can’t go out on vacation doesn’t mean you can’t have a family outing in nature. Involve the whole family in setting up the tents and sleeping bags in your yard. Have a campfire, sing songs, tell stories, and roast marshmallows. Before bed, take some time to admire the stars. The best part is that everyone can get ready for bed in the house, and it’ll be easy to make a delicious breakfast when everyone wakes up in the morning.
4. Dance Party—Make a playlist of your family members’ favorite songs. Gather together in one room and dance to your new playlist. It’ll be a great way to laugh together and let go of any stress you may be feeling at the moment. It’s also a great way to get moving and get some exercise!
5. Art Night—Bring out the crayons, pencils, watercolors, and paper. Come up with a theme, such as summertime, animal friends, or family portraits. It’ll be fun to see what everyone comes up with while allowing them to get creative.

During an uncertain time, it can be challenging to know how to keep your entire family entertained. However, it’s the perfect opportunity to make memories and do things that you don’t always have time to do together. Cherish these fleeting moments with your loved ones.

​Though “murder hornets” are dominating recent headlines, there are no Asian Giant Hornets currently known to be living in the U.S. or Canada, according to UC Riverside Entomology Research Museum Senior Scientist Doug Yanega. 

​Yanega is one of the country’s foremost insect identification experts. Beekeepers in Canada consulted him when a colony of the 2-inch-long hornets — the world’s largest hornet species — was discovered in the Canadian city of Nanaimo on Vancouver Island in September 2019. 

This was the first sighting of the hornet in North America, and authorities eradicated that nest to prevent it from becoming established. According to Yanega, “There have not been any sightings in 2020 that would suggest the eradication attempt was unsuccessful.” 

A resident on the U.S. side of the border, about 50 miles from Nanaimo in Blaine, Washington, reported two additional Asian Giant Hornet sightings in December 2019. The Washington State Department of Agriculture collected one of these hornets, which was dead. The other reportedly flew into a nearby forest. 

Neither that live hornet nor its nest were ever found, but it is unlikely that the insect is still alive, Yanega said. 

Recent genetic tests confirm that the dead hornet was not genetically related to the eradicated Nanaimo nest. 

“The fact that the second hornet turned out to be genetically different somewhat raises the odds that there could be more of them,” Yanega said. “However, right now all authorities are doing is asking people to keep their eyes peeled in case there were queens that escaped destruction and established their own nests nearby.”

The sighting is a concern, as Asian Giant Hornets can destroy honeybee hives and their venom is more toxic to humans than that of a honeybee. 

The hornet spotted in December was likely introduced to North America at the same time as those eradicated in Nanaimo. Therefore, if any of them are still living, they would be in the immediate vicinity of Vancouver Island, he said. 
There are an estimated 10 million insects, less than 2 million of which are "known species." Yanega can identify about 90 percent or more of them, both known and unknown, to the rank of family or better. 
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Yanega is available for press inquiries about this flying insect non-invasion. 

Jules L Bernstein
Senior Public Information Officer
Email (951) 827-4580

It's been difficult to adjust to a new normal during the past few weeks. With most residents being asked to stay at home, there are many who have recently lost their jobs or been asked to work remotely. The mortgage industry has also taken a big hit that has directly affected homeowners, renters, and investors alike.

There are many who are in the final stages of closing on their homes, and the current pandemic has made it difficult to efficiently move forward with the process. To help, desktop and exterior-only appraisals are being accepted as long as there is sufficient property information available online. Potential borrowers can also now submit their verification of employment via email, paystub, or bank statement to help streamline the process.

Significant changes have been made during the recent outbreak of COVID-19 to help homeowners get through this trying time. Those who have lost their jobs may be eligible for reduced or suspended mortgage payments for up to 12 months while they regain their footing and find new employment. All foreclosure sales and evictions have also been suspended for 60 days to give borrowers a chance to catch up on their payments. Homeowners who are behind on their mortgage will also receive help to create a plan to maintain or reduce their monthly payments moving forward.

Renters who are currently unable to make their monthly rent payments are advised to reach out directly to their landlords. Owners of these properties will be given mortgage forbearance by Fannie Mae and Freddie Mac if they suspend all evictions for renters that have been directly affected by COVID-19. This plan is directly designed to prevent tenants from being evicted because they are unable to pay their rent due to a recent loss of their job.

One benefit of the recent changes in the mortgage market is that interest rates have been near an all-time low, and it may be an excellent time to buy your first home or refinance your current mortgage. If you've had your eye on the market for a while now and want to take advantage of the current interest rates, it's the perfect time to call your loan officer and start the process of locking in your rate before interest rates start to increase again.

It can be hard to keep track of all the changes. We are working around the clock to answer all your questions and will support you in any way that we can. Give us a call if you need help or have any specific questions regarding buying or refinancing.