Title Contingency

Contingency is a clause buyers include when making an offer on a home that allows them to back out of the deal without losing their deposit if the conditions of the clause aren’t met. So what is a title contingency, and should you include one in your offer?

CHIC (Pearl)

Title contingency protects a buyer against fraud by ensuring the seller is legally authorized to list the property. Imagine going through the whole purchasing process, including negotiation, offers, bidding wars, loan agreements, inspections, and more, only to find out the property isn’t available after all. Sounds like a good idea to me!

GEEK (Kevin)

Title contingency may sound great, but it’s actually redundant in California. That’s because when you buy a home here, either the seller or buyer are required to get title insurance, which clears any clouds around the ownership question. Typically a title check is also performed during escrow, so there are multiple protections for buyers.

Are you asking the right questions?

There’s no such thing as a stupid question, especially when it comes to selling your home. But it’s hard for a seller to know the right questions to ask if they’ve never done this before. That’s why it’s important to pick an agent who knows the answers. 

CHIC (Pearl)

Beyond the basics of price and commission, it’s important to ask an agent about their marketing strategy. How can they ensure your property gets maximum exposure in a crowded market? Related to this is timing. Is now the best time to put your property on the market? If so, why? If not, why not, and what would be a better time? And there’s nothing wrong with asking an agent directly why they are the best person for the job. If they can’t answer that question, it’s a big red flag!

GEEK (Kevin)

As a numbers guy, it’s important for me to know about valuation and pricing. How will the agent get you top dollar without scaring off potential buyers? How do they plan to handle a bidding war? Can they guarantee none of the buyers will walk away before you get the offer you want? And what will the agent do to mitigate your risk by avoiding contingencies in the contract? A successful sale requires attention to detail, and your agent should reflect that.

Aging in Place - Silicon Valley Style!

As people on the verge of retirement consider the considerable costs of staying in the Bay Area, one senior decided to take advantage of updated rules and added an ADU in her backyard that will generate enough income for her to age in place.

The Mountain View Voice has the story.

Chic vs. Geek: Buying Brand New

When you purchase a newly constructed single family home, there are a few important details that you need to navigate, including these contract specifications…

CHIC (Pearl)

Everything from the fit and finish of cabinets and mirrors to flooring, interior and exterior walls, countertops, paint finishes and trim can fall under a seller warranty against defective materials and/or workmanship, provided the seller receives notice within one year of the date of occupancy. The buyer can always waive this coverage for anything they’ve already had inspected.

GEEK (Kevin)

To make sure the seller follows through, there’s also a seller completion obligation, under which the seller agrees to provide all labor and materials to make necessary improvements and file all the applicable paperwork with local authorities. But supply shortages, labor disputes, buyer inaction, and other unforeseeable circumstances can cause delays.

Chic vs. Geek: Paying you back in any market

From building equity to built-in savings, there are real estate principles and benefits to help your property pay you back, even in a down market.

CHIC (PEARL)

Dual Purpose Investment

A home is both a current need and an investment in your future. You can find something that fits your family right now, but how will it suit you ten years down the road?

Valuable Savings

Mortgage payments can deliver equity, improve your credit score, and also serve as a savings account you can leverage now or tap later.

GEEK (KEVIN)

Tax Considerations

Like other life changes, homeownership comes with tax deductions, credits, and other perks. Ask your accountant to get you started with a mortgage payment deduction.

Protection from Inflation

Rents rise with inflation, and sometimes to pay for building upgrades, but payments on a 30-year fixed mortgage remain the same for, well, 30 years!

Want to learn more about the benefits of home ownership?