Joe & Taryn: Home For The Holidays!!

With Thanksgiving on the horizon, we are excited to announce that our clients Joe and Taryn will be home for the holidays! We were functioning on a strict time-line, but were able to help these newly-weds find a home they both loved in under a month!

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These two were dream clients and are the perfect example that finding a home can be done fairly quickly if you follow our home-finding process. Immediately after meeting with us for a buyer’s consultation, they completed their “driving homework”and were able to identify exactly which neighborhoods they did and didn’t like. Simple steps such as this help us to eliminate homes from the get-go and ultimately save a lot of time when it comes to finding ideal homes for our buyers!

 

Joe and Taryn decided to make an offer on a new construction home, which is a different process from purchasing a standard resale home. Knowing this, they were extremely thorough in reviewing the 100-pg purchase contract (much more intricate that the standard RPA!) and we were happy to discuss all of their concerns! They brought a lot of great questions to the table, but in the end they felt comfortable with moving forward and knew the source of every fee and cost!

We are thrilled that we got the chance to assist Joe and Taryn in this huge life step! They made our jobs easy by not only following our advice, but also by communicating clearly and giving us regular feedback. They remained involved and attentive throughout the entire process – there is nothing Realtors like more than responsive clients!

Our recent transaction with Joe and Taryn reminded us of the difficulties that could arise with new construction and we are happy we could be there to help smooth out the kinks and negotiate on their behalf. This article by NOLO provides an extensive pro-con list when it comes to purchasing new construction, but here are few Weber Accetta Certified tips for purchasing new construction homes:

  1. Get an inspection! Although no one has formally resided in the home, new homes have problems too. We recommend hiring an inspector to make sure everything is safe and up to code – for peace of mind and to protect you from future headaches!
  2. Check future plans! This is especially important if the home you are purchasing is in an underdeveloped area. Be sure to check with the city to see what is planned for the surrounding area and/or neighborhoods.
  3. Hire your own agent! Often-times model homes will be staffed with an agent who has a relationship with the builder, so it is important to hire an uninvolved agent that has your best interest in mind.
  4. Get pre-approved! It is still essential to have your finances in order and to get pre-approved by a bank or mortgage lender. This helps prove your validity as a buyer during the negotiation process and helps ensure that escrow moves smoothly and closes on time!

If you are in search of a NEW home for the holidays, consider letting the Weber Accetta Group work alongside you and help expedite the process! Shoot us an email or give us a call anytime of day to help discuss your needs!


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Lauren@WeberAccetta.com

310.387.4693



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Michelle@WeberAccetta.com

  310.293.1883

 

 


 

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AirBNB – Here to Stay?

The world of travel has been recently revolutionized by Airbnb – an innovative company that allows travelers to have a more home-roots experience when venturing to new cities.

Available in over 191+ counties, the site gives home owners an opportunity to capitalize on empty rooms or vacant apartments. It describes itself  as “a social website that connects people who have space to share with those who are looking for a place to stay”.

While Airbnb certainly makes travel more convenient, more affordable and let’s face it – more fun, a few cities are concerned with their casual approach to the travel industry and argue that it is contributing to the current housing crisis.

Should we, as homeowners/renters in one of the most populated cities in the country be concerned with the growth of Airbnb?


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To start, some lawmakers are anti-Airbnb because it allows people to make money without having to pay hotel taxes. The company charges guest a 9-12% service fee on every reservation made, as well as charging hosts a 3% fee.  Worth over $10 billion dollars, the company’s current valuation exceeds that of many global hotel chain. It has lessened our reliance on traditional hotels and motels – which ultimately means that the hospitality industry is losing money. In fact, HVS estimated that hotels lose approximately $450 million in direct revenues per year to AirBnb.

Beyond this financial impact, the popularity of Airbnb could ultimately be contributing to the rising cost of living in your city. It is more profitable for home owners to offer short-term rentals (think $150 a night) rather than long-term monthly rental agreements – think $150/night vs $800/month!

According to research done by Vice, this issue is aggravated in cities where vacancy rates are low and rental rates are historically high. Bennett Baumer, an organizer with the Housing Conservation Coordinators, shared, “Airbnb is exacerbating the affordability crisis and the general anyone-looking-for-an-apartment crisis by taking almost 20,000 apartments out of the market.” While this powerful statement was made in reference to New York City, Los Angeles no doubt fits the “low vacancy rates, historically high rent” description and it is likely that this issue translates over to the West coast.

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Further, renters who list who list their apartments or homes on the site may very well be in breach of their rental agreements. People who use their spare rooms to make quick cash on Airbnb without approval from their land-lord or the home owner, may find themselves evicted or in court! While Airbnb encourages its users to be “responsible hosts” and check renting laws and lease agreements prior to listing their spaces, the company does not take responsibilities for any legal issues that may arise.

On a more personal note, there is always the risk of bringing loud, irresponsible and reckless groups into your home/neighborhood. While you have the opportunity to screen and ultimately decline guests, the site does not require background checks. There have been instances of neighbors or fellow tenants reporting properties that are illegally renting out their homes.


In family friendly Redondo Beach, it is easy to see why your neighbors may be wary of you listing your home on Airbnb. While we see both the pros & cons of Airbnb, we urge you to be cautious if you are considering listing your home on the site. If you currently in a lease, be sure to double check your rental agreement and run the idea by your landlord. If you are a homeowner, we advise being open with your neighbors and selective in your guest selection.

Do you have an Airbnb experience you would like to share with us? We would love to hear more 🙂

 

 

How To Rock Your Request For Repairs

A typical Residential Purchase Agreement contains an inspection contingency that allows for the buyer to inspect the property, review the reports and present a request for repairs to the seller. If the buyer is unsatisfied with the agreed upon repair list he or she can choose to cancel the deal and have their deposit returned. A request for repairs may ask for a detailed list of work to be done and/or a credit amount to cover the cost of the repairs.

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While some buyers feel that opting to waive the inspection contingency will give them a better at getting their offer accepted, we always advise buyers to opt to have the property inspected. While general home inspections cost several hundred dollars and are paid by the buyer, they could save the buyer a large amount of money in the long run. It also helps to educate you on the overall condition of your home and the condition of its systems.

Your home inspection will inevitably point out some problems with the property – no matter if it is brand new or 25 years old. Your home inspector will check that the main appliances and main systems (plumbing, heating, electrical, etc) are safe and operational. They will also check to see if there are any health and safety issues that might be a problem with the specific property. Pending the results, the general inspector will recommend additional inspections from a specialist (such as a roofing or foundation expert) and/or a list of necessary repairs. Most home inspectors have years of experience and should be able to identify what is problematic and needs to be addressed immediately, as well as what will need maintenance in the near future.

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At this point, you will need to generate a list of requested repairs or credits to present to the seller. This part of the escrow process requires negotiation and strong communication between both the agents and their respective parties. Thus, when deciding what issues or problems to put on your list it is helpful to consider how the seller might react – while you may feel that you are entitled to put everything the inspector recommends replacing, this is a key example of “picking your battles”. You may an extensive list, but it is best to get the list down to the most crucial items and be willing to let the minor things go.

Generally, it is a good idea to stick to health and safety items, as well as any damage that could adversely affect the structural integrity of the home over time. A few items of real concern are: cracks in the chimney, foundation cracks or a damaged roof.

As a buyer, you should be absolutely be persistent on ensuring that your future home is up to par, but you should prepared to take on some of the responsibility of the repairs. After all, you do not want to the deal to fall apart or get drawn out because you cannot come to an agreement as to which party will fix a few cracked floor tiles.

The best way to ensure that you get the most from the seller is to present estimates of the actual cost from contractors. While this may require more effort on your end, doing this gives the seller concrete proof of the price work that needs to be done and gives them little wiggle room.

Another thing to keep in mind when crafting your request list is the sale price of the home. If you were able to secure the home way below asking price, you should consider being a bit more lenient on your list. If you paid full price, you will have more wiggle room to include more requests, but remember that it is very rare to have the seller agree to all the requests right off the bat.

Most importantly, lean heavily on your agent during this whole experience! Remember, we are negotiation specialists and have gone through this process many times. We know the importance of being flexible, but also when to stick to our guns and fight for our clients and their wants. In the end, our job is to ensure that you get the best deal and that you feel 100% confident moving forward with closing on your new home!

Creating An Eco-Friendly Home

From solar panels to green-lifestyle dating sites (yes, those are a thing!), it is hard to miss the emergence of new products/lifestyle options that take eco-friendly living to a whole new level!

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While it is inspiring to see more Californians opting for a less harmful existence, many still view taking on a greener lifestyle as a daunting and expensive endeavor! We have devoted this week’s blog post to putting together a list of simple, cost-effective, and in a few cases, fun tips to help make your home more eco-friendly. You do not have to implement all the suggestions below, but try to pick one that seems feasible and go for it!

Anything else you’re interested in is not going to happen if you can’t breathe the air and drink the water. Don’t sit this one out. Do something. – Carl Sagan

Upgrade Your Insulation & Windows

Adding insulation to prevent leaky  walls, windows, doors and duct can reduce your home’s energy usage up to 20 or 30 percent. If totally updating your insulation is too expensive for your fall budget, consider trying out thermal shades. These shades are made not only to block the sun in the summer, but also to retain heat in the winter! Energy-efficient windows also help to better insulate your home. Check out this article by House Logic to learn more about the importance of efficient windows and to find the best models for the most reasonable prices.

Opt for Fragrance-Free Products

Conventional fragrances often contain chemicals that may be harmful to the ecosystem when washed down the drain. If you like your soaps, cleaning products, or cosmetics to smell good (we certainly do!) read the labels to find ones that are made with essential oils. Real Simple offers a huge selection of all-natural cleaning solutions! This helpful blog post also provides a list (and reviews!) of the best eco-friendly cleaning products for your home.

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Low-Flow Your Bathroom

Flushing toilets accounts for 30%  of indoor water use! An average family can reduce water used for toilets by 20 to 60 percent and save $$ in water costs by replacing old toilets with newer WaterSense labeled models.  While you are in the bathroom, go ahead and install a low-flow shower head as well. Also, regularly check your toilets and faucets for leaks.

Replace Your Lightbulbs

Save up to 66% of energy by replacing all of your incandescent lightbulbs with Compact Fluorescent Lightbulbs! Beyond saving energy, CFLs also last up to 6 times as long as incandescent bulbs. (Saving money and time!) Also, turn off the lights when you leave a room.. or consider installing automatic timers in your forgetful teen’s room!

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Cool Down Your Clothes.

According to Huffington Post a huge amount of energy goes into heating water to wash your clothes. Try selecting the “cold water cycle” on your washing machine next time you throw in a load! Also, always make sure you are washing a full load every time. Running a full cycle for just a few towels or a pair of pants uses a substantial amount of water!

Grow An Indoor Garden

Living plants such as the Gerbera Daisy can act as natural air filters and help to improve indoor air quality. Check out this full list of 15 houseplants that not only brighten up a room, but help to absorb harmful pollutants throughout your home!

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Create a Recycling or Compost Station

Nearly half of the trash that a home produces is made up of food scraps. Rather than sending these scraps to the dumb, why not get a compost bin at your house and use those scraps to make fertilizer for your garden?! Get creative and build your own…(or check out these top-selling Amazon options!)

 

We are working to implement these changes in our own homes, so we are open to any tips or suggestions  our readers have!

 

HOAs .. & YOU!

When you purchase a townhouse, condo or any property within a planned development, you are required to join that development’s homeowners’ associations (HOA) which includes paying a monthly or annual HOA fee.

Generally, the HOA is in charge of the upkeep of common areas, landscaping and the buildings themselves.  Each HOA is unique however, and the responsibilities (and fee amount) of each varies based on the development and the amenities that it has. A more upscale complex may include a wide range of facilities such as swimming pools, clubhouses, fitness rooms, security gates and tennis courts.

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Also, beyond keeping the grounds in good condition, an HOA also sets the “code of rules” that governs life within a development. This set of rules must be followed by all residents and is known as the CC&Rs (covenants, conditions & restrictions). CC&Rs may dictate a variety of things: from the types of vehicles that may be parked on the street to fence height restrictions to the color of your window frames. If you, as a homeowner, decide to break one of these rules, you must appeal to the HOA to grant you a variance.  While CC&Rs are a great way to keep a neighborhood consistent, they could pontially limit your creative juices when it comes to decorating your home!

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An HOA is beneficial, because it ensures that all residents are equally responsible for maintaining the condition of their community. This helps to guarantee a high quality of life, while also preserving property values for the units within the development.

However, HOA fees do tack on an additional cost when it comes to owning a home and it is essential to factor that cost into your price of living. Average HOA fees are generally around $400 a month, but could run less or more based on the amount of amenities.

Another responsibility of a homeowner’s association is plan for the long-term well being of the community. That means looking ahead to larger scale repairs and improvements that will need to be made in the future. Each HOA holds a reserve fund, which is kept to pay for these long term projects, as well as any emergencies that may arise. However, if the reserve fund is inadequate, the association may require all occupants to pay a “special assessment” in order to supply the necessary funds. Special assessments may occur at any time.. meaning another unexpected cost for development residents.

HOAs are either professionally managed or are run by residents within the development. There are pros and cons to both scenarios, so we recommend getting in touch with the HOA prior to joining the development. It is a good idea to get a feel for the way that the development is run and to evaluate who is making the decisions that will affect your daily life. You can also find out specifics about that exact homeowner’s association.

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Some good questions to ask:

                                          – What services are covered by your HOA dues?

– Are there any services for which you have to pay extra?

– How often do fee increases occur, and by what percentage?

– Are any special assessments planned for the immediate future?

As a homeowner (especially one paying HOA fees) it is always better to be over educated, than under educated. Stay involved in your community, be aware of the CC&Rs and take full advantage of the perks of having a homeowner’s association!

Title.

 

In California, title to real property may be held individuals in either Sole Ownership or in Co-Ownership (when held by two or more persons). In each instance, there are a number of variations as to exactly how title may be held. In this blog, we will discuss 8 of the most common situations.

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  1. Title may be held as a single man or woman who is not legally married
  2. You may hold title as an unmarried man or woman. This is different from holding title as a single man/woman because it refers to someone has has been legally divorced or who has dissolved a registered domestic partnership.
  3. If a married man/woman or a registered domestic partner desires to hold title in his or her name alone, he or she may do so with consent from the spouse/partner. Consent is given through a quitclaim deed that relinquishes all right or interest in the property. Thus, it is possible to hold sole and separate property, even if legally married.
  4. As defined in the California Civil Code, community property is property that has been acquired by either a husband or wife. When real property is conveyed to a married man or woman (or those in a domestic partnership), it becomes community property unless otherwise specified. This gives both spouses the right to dispose of exactly half of the property. If one spouse was to pass away, their half of the community property would automatically transfer to the surviving spouse. However, it is possible to leave one’s share of the property to a third party via a will.
  5. The Civil Code defines joint tenancy  as “owned by two or more persons in equal shares, by title created by a single will or transfer when expressly declared in the will or transfer to be joint tenancy.” Each share is equal. This style of holding title is made unique by the “right of survivorship” which declares that when a member hold joint tenancy dies, his or her interest in the property is automatically given to the survivor. A major advantage is that probate costs and delays are avoided when a joint tenant dies. However, it is important to note that property held in joint tenancy is not susceptible to being transferred to a third party by a will.
  6. Similar to joint tenancy, tenancy in common occurs when co-owners hold undivided interests, BUT these shares do not need to be equal or established at the same time. Another difference is that there is no right of survivorship, meaning that upon death each person may vest his or her interest to an heir.  A disadvantage to this is that the remaining tenant in common could wind up co-owning property with a stranger.
  7. Married couples and domestic partners have the ability to hold title as community property with right of survivorship, meaning that no share of the property may be given to anyone other than the surviving spouse or partner. This must be specified in writing that is signed by the grantees.
  8. Lastly, title to real property may be held in a living trust. In this scenario, a trustee would hold the legal and equitable title to the property for the beneficiary who is to retrain all of the rights and responsibilities. There are many advantages to a living trust, including avoidance of probate costs and delays. Further, until the death or disability of the trust creator, the property in the living trust is treated normally.

This chart from Fidelity helps to clarify:

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As a home owner, it is essential to not only familiarize yourself with the various ways to hold title, but also to be certain as to how you are holding title to your real property.

This knowledge is important because it may influence many tax and legal consequences during your life time and how (and whether) the property is transferred to your heirs when you die.

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There are significant tax and legal consequences that stem from how you hold title. We strongly encourage contacting an attorney and/or CPA for specific advice on how you should actually vest your title.

 

 

STOP in the name of Low Mortgage Rates

Seriously, stop what you are doing.

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BECAUSE, low mortgage rates = amazing opportunities for buyers, sellers, or homeowners looking to refinance!

While rates on mortgages change daily, they are currently holding steady at near record lows. In fact, according to the Bankrate.com rates have not been this low since December 2012!  The graphic below demonstrates the drop in rates from just last week.

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Both 15-year and 30-year mortgage rates are down more than 0.5% since the start of the year.

What does this mean for buyers?

This drop in rates means that those looking to buy have experienced a purchase power increase of 7%…meaning that buyers who could afford an $800,000 home in December can now afford an $852,000 home!  For many on the house-hunt, this increase in purchase power could put their dream home just in reach!

What does this mean for sellers?

Lower mortgage rates translate to a surplus of buyers looking to take advantage of their higher purchasing power; which means you, as a seller, have the ability to get top dollar for your home! More active buyers are out looking increases the desirability of your home.. making it a hot commodity.

What does this mean for refinancers?

Refinancing gives a homeowner access to a new mortgage loan which replaces the existing one. The details of the new loan’s mortgage rate, loan length in years, and amount borrowed can customized by the homeowner. Thus, refinancing during a period of lower mortgage rates could benefit borrowers by lowering their monthly housing payments and/or shortening the term of their mortgage.

For a personalized rate, check out this helpful site: http://themortgagereports.com/ratequote/

Remember: Mortgage rates change quickly and there is no guarantee that these rates will last. Whether you are a seller or a buyer, it is time to take advantage of the current market!

R E A P – Find Out What It Means To Me .. & You!

Ever been scanning across apartment listings in LA and been confused by the statement “Property in REAP. Looking for an all-cash buyer”? You are not alone. Read on for a brief synopsis on the program and whom it affects.

What exactly is REAP?

The Rent Escrow Account Program has been established by the City of Los Angeles and exists to resolve health, safety and habitability issues found in rental properties. It essentially functions to protect tenants from unsound housing, while also preserving the value of LA’s properties and housing developments.

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How does REAP work?

Rental properties and units get placed in REAP if they do not correct cited health, safety and Housing Code violations within the allotted time. This placement may be appealed by the landlord, but once the decision to put a property into REAP is finalized a rent reduction is put in place. Based on the severity of the violations, the reduction may be between 10% to 50% of the monthly rent.

The tenant may continue to pay the reduced monthly rate to the landlord or he or she can opt to send the payments to an escrow account established by the Housing & Community Investment Department of Los Angeles (HCIDLA).

Tenants will be alerted that their rental property is in REAP via mail or by a visit from one of REAP’s outreach counselors. An outreach counselor is assigned to every case and is accountable for educating the tenants and the landlord on their respective rights and responsibilities within the program.

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How is the property owner affected?

Once a property or unit is put into REAP, the HCIDLA also records a notice on the property’s title. This notice alerts potential buyers and their lenders, that there is a problem with the property.. which means that no one will lend to the owner or attempt to buy the property using a loan – this is why REAP properties are required to sell for cash. The owner is also charged a monthly administration fee of $50. Owners are further negatively impacted by spending more money on repairs while simultaneously being required to lower rental rents.

How does a property get taken OUT of REAP?

 A property remains in REAP until the HCIDLA can verify that the violations have been  resolved and that all the issues have been signed off on by a Department inspector.  Once the HDICLA confirms that Los Angeles Department of Water and Power bills have all been paid off, the City Council will evaluate (and most likely) approve the property’s removal from the program. Tenants will be alerted by mail that the property has been removed from the program and that required rent has been reverted back to it’s normal rate. It is important to note that if a tenant has been paying rent through an escrow account that they are required to return to directly paying his or her landlord.

Know your responsibilities as a land lord so REAP does not happen to you, as well as your rights as tenant when it comes to the quality of your rental property.

For more information on the Rent Escrow Account Program, check out the HDCILA’s info page: http://hcidla.lacity.org/what-is-reap-for-renters

Probate Sales: Knowing the Perks & Risks

If you are an active real estate buyer, or even just a curious browser, you have undoubtedly encountered a probate sale. While a probate sale generally means that the cost of the property is lower it can also mean a trickier and longer process than a normal sale. As such, it is necessary to familiarize one’s self with the system and to know what to expect.

Gavel and Small Model House on Wooden Table.

Overview of  Probate Sales:

A probate sale is used when a homeowner dies without leaving a will or without directly bequeathing the property to someone. Essentially, the state takes over and oversees the sale of the home.

While probate sales generally mean lower prices, it is important to note that there is a minimum value that must be met: the property must sell for at least 90% of its appraised value. Further, the court ensures that the home has been properly listed, marketed and appraised to guarantee that it is sold at a fair market price.

When it comes to making an offer, a 10% percent deposit is generally required. (This is due to the Court requirement of 10% at the confirmation hearing.) Similar to a normal sale, the representative of the estate will then review the offer and accept or counter it.

However, unlike a normal sale, acceptance does not mean the immediate opening of escrow. The offer is still subject to the court’s confirmation and it’s acceptance does not fully commit the seller to the buyer. It is not until after all contingencies are removed that the court may be petitioned to confirm the sale.

After confirmation from the court, the attorney must post a Notice of Sale -an ad stating their intention to sell the home and calling for anyone who thinks they are a beneficiary to come forward. In California, the law requires that a Notice of Sale is published in a newspaper from the same county as the property. The ad must run three times at least 10 days before the sale. 

After the notice has been run and no beneficiary has turned up, a court date is requested. The court date could be set immediately or several months out…Then starts the waiting game.

During this waiting period, notice of the sale as the date and location of the hearing must be marketed.

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When the court date arrives, the listing agent, plus any other interested party, is required to attend. At the court proceeding the property is subject to an overbid scenario wherein another buyer can come in and purchase the property contingency free on the spot. According to California real estate law, the minimum overbid amount must be 10% over the price that was accepted initially. Anyone wishing to bid, is required to bring a cashier’s check, made out to the Estate, for this amount.

If there are no bidders, the original contract is confirmed and the buyer gets the property for their original contract price.


As you can see, probate sales are not a cut and dry deal. They can turn into long drawn out affairs that can result in you spending a lot of time and resources just to have your offer outbid at the court hearing (worst case scenario!). However, working with an experienced and knowledge agent can help increase your chances of securing a home at a lower price (best case scenario!)

A probate sale can be a savvy way to secure an investment property or even a new family home. Just be prepared to patient and make sure that you have housing arrangements in the meantime!


Note: One of the main risks when it comes to probate sales is the limited disclosures requirement. In most cases the owner is deceased (it is also possible that he or she is incapacitated) and the court-appointed representative has never lived in the home, meaning that there may limited insight into the condition of the home and it’s systems. Therefore, it is essential that the buyer fully investigates the property and has the home inspected. It is also a good idea to check the public record.

*As a homeowner, make sure that you have a will clearly naming your beneficiaries to avoid the stress of you home entering the probate sale process*

 

Rent-Back Agreements and How They Work

One qualm that often holds homeowners back from selling their current property and moving into their dream home is that they will sell their home before securing a new one. Considering Southern California’s hot real estate market and how quickly homes are being sold, we recognize that this is a valid concern.  Buying a home is a huge decision.. and not one that anyone wants to make under the pressure of becoming homeless!

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However, several options exist to help ensure a smooth transition period  for both buyers and sellers. One alternative that we have found to be mutually beneficial for both parties is the rent-back agreement – this essentially allows the sellers extended time in the home by making them the new owner’s tenants after escrow closes. While this agreement comes with a time limit designated by the buyer, it gives the seller extra time to get things squared away with their new home. It also eliminates the need to deal with storing their belongings or finding an interim place to live! For the seller, this is a more secure option then simply extending escrow as it removes the risk that the escrow will not close and it also gives him/her access to the money from the sale.

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The rent-back agreement is advantageous to the buyer for two main reasons:

  1. If there are several competitive offers on the home, it may make the buyer’s offer stand out and help ensure it’s acceptance.
  2. The rent charged to the seller may help to recover closing costs – or at least lower the overall cost of the move.

Note: While it is technically up to the buyer to determine how much the cost of rent should be, it is typically the equivalent of the buyers’ principal, interest, taxes and insurance on a prorated basis. Thus, the seller will essentially be paying the buyer’s mortgage for the amount of time they will be occupying the home.

It is important to note that rent-back agreements are legally binding agreements made in writing so it is essential to maintain clear communication concerning your needs (whether you are the buyer or the seller!). Be sure to agree on the exact date that the seller is expected to move out, as well as the amount of rent the seller will pay.

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Overall, the rent-back agreement offers the seller some breathing room and peace of mind when it comes to finding a replacement home, but also proves beneficial for the seller. As long as the kinks are worked out and both parties are willing to participate, this option is an ideal solution for those who are looking to relocate into their dream home!