A real estate contingency is a provision that something must be overcome or approved to consummate a transaction.  In other words, it’s a condition, such as “I will buy this house IF (fill in the blank)”.

Silicon Valley real estate consumers are well aware that home buyers normally have a few contingencies during escrow.  The major ones are for property condition or inspection and loan or finance (to include appraisal).  But there are others too, such as approving the preliminary title report, obtaining and accepting disclosures etc. (On rare occasions, such as some tenant occupied properties, the buyer may have to make an offer first and then, after it’s accepted, view the home or apartment building. In that case it’s “write offer subject to inspection” – a contingency that you’ll accept it after you get into escrow! This is how apartment buildings and some multi-family dwellings are sold.)

What about seller contingencies?

Sellers, too, may be able to back out of the contract if certain conditions are not met.  The two we see most common are these:

1. In the case of a short sale, the sellers have a contingency for bank approval and for their acceptance of the bank’s terms.  If the bank doesn’t approve the short payoff, the seller does not have to sell the house to the buyer.
2. Sometimes sellers only want to sell their home if they can find another one which they wish to purchase.  This can be a contingency also: “sale subject to sellers’ finding a replacement property within X number of days“.

Some homes are part of a co-op (cooperative) and in a few areas around the country, I think mainly in New York City, a board must approve whomever wants to purchase the home or unit.  In those cases, there would be a seller contingency for board approval.  I have never run into it in the San Jose, Los Gatos, or Saratoga area but it is possible that you could see it somewhere in California.

How does a seller’s contingency impact value and desirability?

Seller contingencies usually make it difficult to attract buyers since there is a giant unknown in terms of the ability to close escrow and it’s not in the buyer’s control to fix it.  With short sales, that contingency must be in place for the seller, but not so for the “replacement property” clause.  When sellers invoke that contingency (which must be listed in the MLS), it will usually cut down on showings, offers, and ultimately the probable buyer’s value for the home – so normally this is not advisable.

If you don’t see the MLS printout on your property when it’s on the market, you could be missing errors and typos that have slipped past your agent.  Or you may simply prefer that certain elements be emphasized over others.  I’m convinced that many Silicon Valley home sellers never view or critique the agent report or comments though – if they did they’d probably have a bit of a heart attack.

Errors and typos are not uncommon.  Once I helped a buyer to purchase a 3 bed, 2 bath home which was incorrectly represented in the multiple listing service as 3 bedrooms, 1.5 baths.  This of course was to our advantage, but the seller probably had less traffic, and ultimately a lower sales price, because of the data entry error.It should have been caught by the agent, of course, but the seller too should have been more responsible. No one knows your home like you do!

Sometimes the typos are funny, if unintentionally so.  I saw one house which boasted dual pain windows (makes you wonder!).  A walk in pantry was once said to be a walk in panty. This happens not just on the mls of course.  One friend mentioned to me reading a termite report that said that the wood debris in the crawl space of a home was called “cellulite debris” instead of “cellulose debris”.  Mistakes happen. If you’re the seller, try to find them before they go public – or worse, viral!

The comments sections (most for everyone, but a few for just real estate licensees and members of the MLS) are crucially important to a successful sale – almost as important as having a lot of high quality photographs.   Let me give you an example.  Would you rather have your home described by the first or second set of comments?

1. LOCATION, LOCATION, LOCATION! Nice home in great area!!!
2. Classic, updated & remodeled Victorian on tree lined streets close to SJSU. Large formal entry, remodeled kitchen with granite & profession 6 burner range, large living & dining rooms. Newer furnace. Foundation upgraded in 2005.  Big front porch & private back yard. (more…)

Frequently I’m asked if I (or another real estate licensee or agent) can help a consumer to purchase a foreclosure.  There are some nuances to this answer, but in short, it depends.

There are several stages in the foreclosure related sales in California.  Often, homes somewhere in this quagmire are listed on our Silicon Valley area MLS or multiple listing service.  If a property is listed in the MLS, then yes, we Realtors can help home buyers with a distressed sale purchase.

1. Pre-foreclosure (where payments have been missed and a Notice of Default or NOD has been filed – often, but not always, these homes are on the market and included in the MLS.  If they’re in the MLS, I can help.  Often these are short sales (but short sales are not always in pre-foreclosure – they may not have missed any payments).
2. Trustee’s sale, or actual foreclosure on the courthouse steps.  No role for a real estate agent here.  There are some big caveats and warnings! First,  often what’s owed against the home is more than it’s worth and the only way to purchase a home here is to pay off all the debts (so it may not be much of a deal!).  Second, if you buy here, you get NO inspection contingency and must pay cash for the house.  End of story – no backing out.  Worse, you cannot inspect it ahead of time!
3. Bank owned or REO.  These are usually listed on the MLS and if so, I can help you with it.  Sometimes banks hold onto them between the trustee’s sale and prior to listing them with a broker.  Often this is only for a month or two but sometimes it’s longer.  If it’s not on the MLS, it’s very very hard, or maybe impossible, to buy it.

While it’s not hard to locate homes where owners have missed some payments, it should not be assumed that these houses are either for sale or that the owners have any intention of selling them.  In my opinion, it would be harassment if consumers showed up on their doorsteps trying to purchase a house where a payment has been missed.  Most, maybe all, of the residents there would be offended.  They may be trying to get a loan modification (a friend of mine got one approved last week!) or have family & friends helping them to get back on track. If it is not listed in the MLS (which you can find at www.MLSListings.com – the public portal of our agent multiple listing service), the odds are overwhelmingly against it being available to you.

Did you buy your house at the peak of the market?

Recently I met with some of my past clients, who purchased their San Jose house close to the height of the market (2005-2007).  In those days it was a hot seller’s market (not unlike many parts of the Silicon Valley real estate landscape today, actually), and buyers routinely purchased their homes “As Is“, meaning no repairs provided by the sellers.  Desperate to get in when prices were appreciating fast, it seemed that most home buyers said “we’ll take care of it after we own it“.

But they forgot.

Actually this didn’t just happen during the peak of the market here in Santa Clara County – there’s always a percentage of consumers who buy As Is to get a better price.  They have good intentions about taking care of the mold, the termites, the roof and whatever else might not be either in good working order or free of infestation.  But once they move in, the “to do list” doesn’t seem to have those items as a high priority, and over time they completely fall through the cracks.

Pull out your old file, find your inspection reports and review them, especially if you are preparing to sell your home

Today I want to encourage you to dig out your old home inspection and pest reports, dust them off, and have a look.  Did you need to address a problem with termites, electrical issues, leaks?  Is there something to take care of with the roof, gutters, dry rot or fungus?  All of those things do not self-correct, but instead grow worse over time.  (more…)

My Sereno Group real estate colleague and friend Lorraine Combs has some extremely gorgeous land listed for sale in Morgan Hill.  Many of us have the dream about building a home somewhere in Silicon Valley and getting more space – and this south county acreage is so scenic that I really wanted to showcase it here.  It’s a nice piece of the California heritage with views of the hills, trees and water all in one place. What a great place to enjoy horses or a vineyard!

So, take a few minutes, enjoy the photos and details, and see if these riverside lots might be just the thing for you or someone you know!

Two Riverfront Morgan Hill Lots For Sale: Some General Information

These two properties were recently subdivided, so share the same address, which is 12575 Watsonville Road, Morgan Hill.  The area is close to town and also near to the wine growing region.

One of these parcels is just shy of 3 acres and the other is 3.45 acres.  They are contiguous so two lots can be purchased together if you are looking for an even larger piece of land to call your own.

Both properties front the beautiful Uvas River, which runs year round.  And both are equestrian properties, zoned for horses.

Seller financing is possible for your real estate purchase – this is an enormous plus, especially given the current lending climate!

A well is shared between the two addresses. One lot has a P, G & E pole and the other has an electric easement.

One of the parcels has an existing structure and a new house can be built on that site, which includes views of the Uvas River.  The other does not currently have a building on it but does enjoy frontage on the river (and plenty of level land upon which to build).

Please note: do not go to these listings without an appointment!  It is imperative to call and make an appointment first to view this prime land (contact info will be listed at the end of this article).

Now let’s go over each parcel individually. (more…)

The scenic Strathmore neighborhood of Los Gatos lies close to the foothills, including both Blossom Hill and the coastal range rising behind it.  Homes here enjoy that very beautiful backdrop and access to the park and trails, but many other benefits too.

It’s a pedestrian friendly area with sidewalks and tree lined streets, so it is not uncommon to see people out enjoying a stroll, a jog, a bike ride or otherwise taking in the peaceful region.

Additionally, Strathmore residents share a community pool (or cabana) with a neighborhood swim team.   One of the biggest draws of all is that on top of these features, kids in Stratmore get to attend fabulous public schools too. The profile on this neighborhood is overwhelmingly positive!

Where is the Strathmore neighborhood?

Located in east Los Gatos, Strathmore is just off of both Blossom Hill Road and Union Avenue.  The main road through the neighborhood is Anne Way.

It’s a quick trip, less than a mile, to the on ramps at Highway 85 (and less than that to the nearest grocery store, Safeway on Union Avenue).  It’s about 2.5 miles to Vasona Lake County Park and just a little further to downtown Los Gatos.  So this is a wonderfully convenient location.

In those nearby hills, Belgatos Park and the Hines Open Space Preserve offer trails just a few blocks away.

(more…)

Find a home in Los Gatos!  There is no need to register and two ways to browse listings of properties for sale in Los Gatos, the upscale, vibrant and scenic Silicon Valley town nestled into the base of the Santa Cruz Mountains.

1. Find a Los Gatos home for sale by map

Get a bird’s eye view of what’s for sale, and for how much, in different parts of Los Gatos (including 95030 and 95032 zip codes and the ability to navigate to neighboring communities in San Jose, Saratoga, the mountains, Monte Sereno, Campbell, Cambrian etc. too). Search by home type (condo, house, townhome, rental), size, number of bedrooms and other criteria. The “shop by map” feature is available on my PopeHandy.com website. Have a look today!

View Los Gatos homes for sale

This page loads a little slowly, so if you click on the link above, please be patient will all of the mls info and images fill the screen.

2. Browse listed properties in Los Gatos by home type

Additionally, you can browse Los Gatos homes for sale here, without leaving the page! Below please find groupings of listings, primarily by the type of property (house & duet home, townhouse, condominium, multi-family and rental) but the top set of listings is for the ever popular “lowest cost” houses in the town.

Most affordable Los Gatos houses for sale – priced up to $1 million only

These lower cost houses will be shown from least to more expensive.

Sorry, but we couldn't find any results in the MLS that match the specified search criteria.

Houses for Sale in Los Gatos – all prices, view list

The listings shown will be in the order of “newest first”.

Showing properties 1 - 5 of 91. See more city of Los Gatos real estate.
(all data current as of 5/24/2012)

1. $1,998,000 : 17121 Los Robles Wy, Los Gatos
   
   4 beds, 2 full, 1 part baths

   Home size: 3,137 sq ft

   Lot size: 26,136 sqft
   
2. $1,199,000 : 108 Towne Te, Los Gatos
   
   3 beds, 2 full, 1 part baths

   Home size: 1,657 sq ft

   Lot size: 3,242 sqft
   
3. $999,000 : 112 Towne Te, Los Gatos
   
   3 beds, 2 full, 1 part baths

   Home size: 1,269 sq ft

   Lot size: 3,312 sqft
   
4. $2,239,000 : 16111 Escobar Av, Los Gatos
   
   4 beds, 3 full, 1 part baths

   Home size: 3,692 sq ft

   Lot size: 8,132 sqft
   
5. $2,450,000 : 17 Glen Ridge Av, Los Gatos
   
   4 beds, 2 full baths

   Home size: 2,982 sq ft

   Lot size: 7,500 sqft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

(more…)