Misssion Viejo Home Buyers Lean on New Terms and Conditions to be Successful
Continued Lack of Inventory of Mission Viejo Homes for Sale Calls for New Terms and Conditions
Even though the inventory of homes for sale in Mission Viejo, Coto de Caza, and Rancho Santa Margarita has increased lately, there are still so few homes on the market that home buyers need to use new terms and conditions to be successful in the Mission Viejo real estate market today. Here are the top three trends in new terms and conditions that you need to know about as a home buyer in today’s market. Serious buyers will quickly see how these new terms and conditions will help!
- Contingent on the sellers’ finding a replacement property – You know already that if a house for sale in Orange County today is priced right and staged to sell, you’re more than likely looking at multiple offers from qualified buyers. Well, it’s no surprise that the seller is facing the same possibility trying to find their next Mission Viejo home. So almost every Counter Offer to a buyer’s initial offer these days is asking for some time up front for the seller to identify and successfully bid on their next home before they start the time ticking on their sale. So as a Mission Viejo home buyer, if you agree to grant the sellers 17 days to successfully land their next house, you are basically in a holding pattern until they can strike a deal on their next home. I’d make sure you know where they are planning to move and what their price range is to help gauge how long it may take them to find it. And if they don’t find anything that floats their boat – they can cancel your contract after the time has run out. So would you stop home shopping during those critical 17 days? I didn’t think so.
- Seller’s option to rent back for up to 30, 45, 60 or 90 days – Some sellers these days would rather get their home sold and close escrow so that they can go out into the buying universe without any contingencies. Meaning their money is in the bank and they can be competitive bidders. Of course, they don’t want to move until they have purchased their next home, so they’ll ask the buyer to let them rent their house back during the time it takes them to wrap up their deal and schedule the moving truck. Buyers be careful here – lenders who are loaning you money for your primary residence at preferred interest rates don’t like to see long rent backs, because then it looks like an income property, which has less favorable interest rates. Don’t shot your great deal in the foot. FYI – rent backs can be done outside of escrow. Ask you Realtor, she’ll know how to help you with this.
- Removal of Appraisal Contingency – The proverbial knight in shining armor riding up on the white horse to save the sellers from any shortfall between the price the buyer agreed to pay and the appraised value. Be careful here everybody. Buyers in California have a number of so called “outs” that they can exercise during their contingency period – the appraisal contingency is just one. Removing or eliminating this contingency does not wipe out any of the other reasons the buyer can give to justify cancelling the contract – regardless of the appraisal.
So that there you have the latest scoop on trending terms and conditions in a low inventory market. Let’s see if this uptick in inventory is a fluke or a signal of a turn in the market.
I’m Leslie Eskildsen, the Realtor you see in the Orange County Register Sunday Real Estate section.
Your success is a phone call away.
Call me. 949-678-3373
Text ne. 949-678-3373
Email me. Leslie@LeslieEskildsen.com
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