What Are Contingencies On A Contract?

What are Contingencies on a Contract? 

Contingencies are commonplace in contracts of all kinds. A contingency allows for one party or another to legally back out of a contract in the event of some specific condition occurring. They are protection against the unknown. In real estate, there can be contingencies inserted for either buyer or seller or both. These take many different forms and until removed in writing, either party may change their minds based on the result of the contingent event or issue. While the seller contingencies are less common, there are a few that you can use to your advantage, should you need them. Keep Reading to find out what they are and how you can use them to protect your interests.

Some examples of home buyer contingencies:

 • Home inspections – condition of the home there are various inspection-related contingencies with specified due dates and requirements. These allow the buyer to demand new terms or repairs should the inspection uncover certain issues with the property – and to walk away from the deal if they aren't met. The seller can then either accept or reject those terms; rejecting them would also terminate the contract.

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 • Specialty inspections – mold, geological, roof inspections

• Code Violations – an investigation into improvements made without permits

• Lender appraisal – ensures the offered price is not too high. Should the appraisal come in lower, another negotiation might become necessary to see if the seller will lower the price to make up the difference. If not, this circumstance could void the contract

• Sale of current home – allows the buyer to back out if they cannot sell their current home in specific time frame. Sometimes the buyer is only able to close if he can get funds from the sale of his current home, which is usually under contract at the time he enters into the deal for the new home. So he makes the new deal contingent upon successful completion of his old place. A seller accepting this clause may depend on how confident she is of receiving other offers for her property.

• Final loan approval – loan is ready for signature and close

• HOA CC&Rs – review of documents to ensure rules and regulations do not infringe on enjoyment of property

• Insurability – home owner’s insurance available at a reasonable rate Home sellers can also have contingencies included as well, such as one which states the sale is contingent on finding a replacement home. Contingencies are a fact of contract law. In real estate, they ensure that the offer is concluded as expected.

It is important to know your personal interest in such a large financial transaction. The more you ask the better you will become with the process. It is important to have someone on your side looking out for your interests. Contact your Mortgage Lender or Me to find out more. 

Down Payment-How Much Will You Need?

DOWN PAYMENT-HOW MUCH WILL YOU NEED?

    Gone are the days when anyone could buy a home with just a promise and signature. No documentation loans allowed virtually anyone to buy a house with no money down with just a simple credit check. After the mortgage meltdown, this all changed. Lenders tightened guidelines and down payments were back. 

But how much do you actually need? Must you always find 20% down? The answer might surprise you; there are many ways to buy a home with less than 20% down payment.

  

 0% Down – There are still two loan programs which allow one to buy a home for no down payment; the VA loan and the USDA loan.

 -The VA loan requires the borrower to be a qualified service person or veteran and the USDA loan is for certain areas under the Department of Agriculture.  

 5% Down – Conventional loans with loan limits can allow one to buy a home with as little as 5% down. These loans do have PMI (Private mortgage insurance) which can be eliminated when the loan amount falls below the 20% threshold.  

3 ½ % Down – FHA offers first time home buyers a good home loan for only 3.5% down payment. Again these loans have loan limits and PMI but offer a faster entry into the housing market.  

It's important to know that if you are buying a home with less money down, know that your mortgage payment will be higher than if you put more money down. The three drivers that inflate a mortgage payment are:

1.Interest Rate

2.Larger Loan Size

3.Private Mortgage Insurance (PMI)

Buying a home doesn’t always mean 20% loan. Although many lenders like 20% down payments but most first-time buyers put down much less. Just keep your eye on the fees. The down payment is not the only upfront money you have to deal with. There are loan closing costs and earnest money to consider as well. (we will get into more detail about earnest money in next weeks blog post)

It is tempting to go with the lowest all-in upfront charges when trying to buy a home. But the key to building net worth is to buy smart, especially when it comes to such a large purchase as a house. 

Lenders are required to disclose all fees and it's always a good idea to shop around with multiple mortgage providers in your area to get your best deal. Plus, the more you explore your options, the more you'll learn about the process. 

 If you’re considering buying a new home, talk to myself or your lender about your options.

Fireplace Design Trends

Fireplace Design Trends

 The long evenings of the winter months invites families to stay home and enjoy the warmth of their own home. Naturally, attention turns to the fireplace as both providing extra heat and as the focal point of the room. New technology and environmentally friendly design has brought contemporary updates that are sleek, fashionable and playful.

  Finishing – Fireplace finishes have changed. New products such as the Cool Wall Series open a wide variety of design options by allowing a cool surface as a backdrop for finishes. 


 Wood – Wood burning fireplaces are back in style. Decorative spaces for wood storage are adding architectural interest.

  Larger Openings – One of the leading trends in fireplace design is enlarging the viewing window of the fireplace. A simple retrofit of an existing fireplace can make a huge difference in the look of any room. 

 Corner Fireplaces – This popular feature of the 1990's is back with modern updates. Two or three sided fireplaces with sleek styling and elegant accents, such as wood or metal, are providing a centerpiece for rooms. 

 Fireplace Walls – Linear fireplaces that stretch the length of the wall is one trend showing up in model homes across the country. Monotone colors and clean lines finish this modern trend. 

Advantages of Selling A Home This Winter

Advantages of Selling a Home This Winter

Home sellers and real estate agents often fear the winter months because it seems like a poor time to list. The truth is that winter can be a great time to list your home for sale. The Internet has no season meaning that serious buyers are always on the look out, checking out the latest listing online. It is especially true when the weather outside is cold. It means your online listing is getting viewed more then before. 


 Less Inventory 
Conventional wisdom tries to say that taking your home off the market in winter, or waiting to list, until the spring selling season starts is the best way to sell your home. The truth is that if you are trying to sell your home, wouldn’t you rather list while the competition is less? 
Come spring, sellers will flood the market and your home will be just another fish in a big pond. 

Higher Prices 
With the end of the summer season, often homes are removed from the market, either because the sellers mistakenly believe they need to wait for the spring. But when listings flood the market in April, prices can go down as a “buyers’ market” takes hold and inventory increases. 

 Serious Buyers 
Buyers in the winter also tend to be more serious about a home purchase. The holidays are a time to relax and enjoy family and friends. In real estate, studies show that if a buyer is out looking for a new home during these months, they have a reason to move, which tend to create better offers.  Home sellers can enhance their ability to capitalize on the slower pace and smaller inventory by listing their homes for sale now. Winter is the perfect time to get the highest possible sales price while the competition is drinking pumpkin spiced latte and waiting for the spring.  

Getting Tax Breaks
Winter home buyers may also be motivated to grab the tax benefits of buying a home before the years end. Many home buyers can write off some of the expenses of their home purchase on their taxes. There are many tax deductible items a home owner can count on, such as: 

• Mortgage interest
• Private Mortgage Insurance (PMI) Premiums
• Real Estate Taxes

Always, check with your tax expert to make sure you are getting all the deductions and credit you've earned. 

So why wait? Existing home sales have increased since November coming into December an average of 4.5% in the past three winters. That means even though there are less homes on the market, buyers are out there buying at a steady, if not increased pace. That is great news for you winter sellers!

If you are wanting your home to be in the spotlight then contact me today! 

It's Time To Winterize

1. Doors and Windows- Is cold air sneaking into your home through your doors and windows? You can make sure that all the weatherstripping is in place and you could even help by purchasing draft stoppers. Caulking your windows or purchase a plastic window insulation kit to keep out the cold chill.

2. Gutters-Cleaning your gutters before winter sets in helps by having a combined build up of leaves, heavy ice/snow causing unwanted damage. It is always a good idea to routinely check the build up in your gutters on your home so the water can flow quickly.

3. Flip Ceiling Fan Blades-YES! This helps! By simply switching your ceiling fan blades to run clockwise will push the warmer air down to the ground, saving you a little bit of extra money on that heating bill. 

4. Change Furnace Filters-During the heating season it's important to change out your dirty filters. If they are not changed out regularly it can restrict airflow and increase your energy demand.

5.Protecting your Pipes-To minimize the possibility of water freezing in your plumbing pipes, wrap each pipe in a blanket of foam insulation.

6.Turn off Exterior Faucets- Undrained water in pipes can freeze, which will cause pipes to burst as the ice expands, start by disconnecting garden hoses and draining the water that remains in faucet. An added protection is purchasing a Faucet Cover.

Almost two thirds of American Adults live in a home that needs weatherization. Among the people who do weatherize their home 54% do it to save money on their energy bills. 44% do it to make the temperature in their home more comfortable and 22% do it to be energy efficient. Whatever your reasoning is it's best to be prepared for a cold winter and prepare your home before the snow and ice begin to fall. Your home will thank you and so will your wallet. 

Thanksgiving Home Decor Ideas

Thanksgiving Home Decor Ideas

 Thanksgiving is the start of the holiday season. While the standard pumpkins and scented candles are a nice touch, there are so many other options for decorating a home for Thanksgiving. Consider these interesting and unusual touches to bring a fall feel to your home. 

 Colorful Leaves – In most parts of the country, there are piles of fall leaves in the front yard. There are a huge variety of uses for these bright leaves. Gather some to use on the dining room table, inside candle hurricanes or scatter along the mantle. 

 Natural Elements – Decorations don’t need to be so obvious. Consider using driftwood, acorns and pine cones to add a fall flavor to your home decor.

 Fall Fruit – Lemons placed in a bowl have long been a staple in spring and summertime staging. In fall and winter, change the lemons to a variety of colors of apples. Everything from red to green and everything in between adds a seasonal tone to the kitchen.

 Pillows and Throws – There’s no rule that says that one needs to keep the same pillows and throws throughout the home all year around. Consider fall/winter colors and themes to add interest to living rooms, bedrooms and dens.

Creative Candle Holders- Use repurposed candle holders for easy fall displays of small pumpkins and gourds. Look for inexpensive candle holders in varying heights at a garage sale or antiques store, then spray-paint black for a unified look. 

Bottle Display- Show off bittersweet berries in gold, green and clear bottles on a windowsill or shelf. Tiny gourds between the bottles add another shape to the seasonal mix. 

Pen Your Thanks- The holiday meal more meaningful by giving each guest a personal note of appreciation. Present the notes in envelopes as place cards or turn them into keepsakes: Print each message on colorful paper and wrap it around a candle holder. (but don't leave lit candles unattended)

Home Holiday Decorating doesn't have to be expensive, adding simple touches can bring about an uplifting spirit in your home. Ones that your family and friends would love to sit around and give thanks. 

When you are in the midst of selling your home over the holidays welcoming potential buyers into a space where they can see their holidays together is a nice touch. You want to present your home as their home when you are trying to sell. 

TOP 5 ROOMS TO REMODEL

Top 5 Rooms to Remodel 

With the popularity of the home remodeling shows, home owners across the country are anxious to take out their tool box and remodel their home too. Most often, remodels are better suited to professionals however, and this can cost significantly more. Regardless of the method, remodeling projects are not inexpensive, so making the best impact for the cost is important. 

Here are the top 5 rooms to remodel in 2018.

 1. Kitchen – Always a great return on investment. From functional spaces to bona find living areas, add extra seating, lighting and entertaining spaces such as a bar or counter. 

2. Backyard Kitchen/Family Room – The backyard is an extension of the interior. Section off areas for an outdoor kitchen and family room. Add a fireplace or even a TV. 

 3. Master Bedroom – Always a place to retreat and refresh. Master bedrooms are getting makeovers with calm soothing paint colors, large picture windows and balconies or patios.  

4. Guest Bathroom – While not often the first thought, a powder room is easy to remodel and gives a great impression. Make the space look larger with a monotone color scheme.  

5. Bonus Room/Media Room – Create a unique family space with a media room or bonus room. Extra space which will bring more than its share of cost when selling. 

Whether you are ready to sell your home or just update a room, any of these areas of  your home are great places to concentrate. You are sure to get a return on your investment in these areas. If you or someone you know is ready to sell their home contact me to learn more about your home value and where you can get started to placing the for sale sign in your yard.