Chic vs. Geek: Non-Contingent Offers

Contingent offers have been on the rise of late, indicating an increase of buyer power. But sellers still have the leverage to accept non-contingent offers. So what do buyers and sellers need to know?

CHIC (PEARL)

First and foremost with a non-contingent offer, a buyer may risk losing their deposit or paying other damages if they decide not to purchase after the offer is accepted. The buyer also loses their right to an inspection contingency, which could uncover issues that need correcting but become the buyer’s problem. The good news is that even with non-contingent offers, buyers have the right to cancel an offer if the seller does not provide a Transfer Disclosure Statement (TDS) beforehand or the TDS is updated or modified during the transaction.

GEEK (KEVIN)

It may be tempting for a seller to accept a non-contingent offer in order to have a quick turnaround, but there are plenty of snags that can get in the way. For example, it’s wise to verify if the buyer has the funds to make the down payment or buy the property outright. There’s no guarantee the buyer can get a loan or that an all-cash buyer can come through. And buyers who feel powerless in the purchase process are more likely to file claims and disputes that could hold up a sale for months, or worse, force you to take the property off the market entirely.

Labor Day Gratitude

On Monday, when we’re all relaxing by the grill, enjoying a cool beverage, and waiting for our burgers to be done (or well done, as the case may be), let’s take a moment to honor the hard work we put in all year round to keep our world moving.

Geek's Number Talk: Market Snapshot - Santa Clara County

As expected, Santa Clara County home sales were down in July, dipping nearly 50% under last year. Meanwhile, prices remain high, though with little change year over year. One thing to watch is the time properties spend on the market, which is stretching out and providing more opportunity for negotiation.

Chic vs. Geek: Homeowner’s Title Insurance

When you buy a home, Santa Clara County and most jurisdictions require you to purchase an insurance policy on your title, aka homeowner’s title insurance. While it may seem like an additional burden, you never know when you’re going to need it, and it’s important to know what it covers — and what it doesn’t!

CHIC (PEARL)

Even after your real estate company conducts a title search and explores all the publicly available details about a property, there is still a risk that new problems will arise. Title insurance can provide you with security against things like ownership claims from other parties including undisclosed heirs, flawed public records, false signatures on documents, including fraud and forgery, outstanding liens and lawsuits, judgments or encumbrances, and unrecorded easements or other restrictive covenants that reduce a property’s value.

GEEK (KEVIN)

As you can see from Pearl’s take, title insurance covers a lot, but it isn’t cheap, so it’s good to know where it comes up short. You won’t get any protection against infestations from termites and other pests, mold and mildew, fire or weather damage, underground fuel tanks (this comes up more often than you’d think), or any issues not caused by the previous homeowners. Depending on your location and the insurer, fire and storm coverage may be included in your homeowner’s insurance policy or offered as an add-on.

Chic ('n' the Geek) Picks: Open Houses this Weekend

We’re hosting open houses this Saturday and Sunday! Come check out these Silicon Valley properties priced under $2M. Want to receive a report on market activity in your neighborhood, including home values, sale prices, and any active, sold, or pending properties going back six months? Sign up here!

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181 Ada Ave, Unit 55

Mountain View, CA 94043

3 Beds | 2.5 Baths | 1,560 sqft | $1.78M

Market Activity Report

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134 Lyell Street

Los Altos, CA 94022

3 Beds | 2 Baths | 1,405 sqft | $1,753,500

Market Activity Report