OOOH.. Tough break. No one's happy when an escrow falls apart. But whether the seller gets to keep the buyer's deposit comes down to two words.
It Depends!
Let's say the buyer has already removed all their contingencies in writing. Now they lose their job, or they find another house they like better, or they decide they can't stand each other, after all. They want out. In most cases, the seller would have a right to keep the deposit. After all the buyer backed out, AFTER removing their contingencies.
But HAVING A RIGHT TO THE DEPOSIT, AND ACTUALLY GETTING IT ARE TWO DIFFERENT STORIES.
In Fair Oaks and the Sacramento area, the buyer's deposit is typically held in escrow. Escrow is a neutral third party. Escrow needs both the buyer's and the seller's approval (signature) to do anything. And that includes releasing any money.
But if the buyer is stubborn, or is a jerk, or really doesn't think it's their fault they can't complete the sale, they may refuse to sign the release, even though they agreed to in the contract. Then, short of begging, reasoning, pleading or sending out Luigi, the seller has no option other than court - usually small claims court.
As a little twist, twice I have had a buyer back out, then leave the state. Now what? It's tough to file in small claims court against an out-of-state person.
So what happened to the $5,000 that was sitting in escrow in my case... that rightfully should have gone to the seller? It's still sitting there today. My seller didn't get it, but at least the buyer didn't get it back either. Escrow can't do anything unless both sides agree. Ultimately, the escrow company will turn the unclaimed money over to the state.
An honorable buyer, who does what they say they will do, will sign the release, and turn the money over to the seller. After all... a deal's a deal. But that's why we have courts. Not everyone does what they say they will do.
Flickr photo by shyg's photostream
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Check out my other posts that might be of interest.....
HOME BUYERS AND SELLERS..........Buying a Home, Selling a Home, Loans, What Happens if....
LOCAL INFO................................. Fair Oaks, Carmichael, Sacramento, Folsom, Citrus Heights
ABOUT SALLY DUNBAR.................. How I learned to...., Personal stuff, My Wordless Photos
OTHER STUFF............................... Inspiration, Attitude, Humorous Stuff, Charity, the Economy
TECHNOLOGY, BLOGGING ............. Active Rain, Technology
Buyers are panicking at the moment. They are running out of homes to buy!
In Sacramento there is only 2.3 months of inventory under $300K (if buyers maintain their present rate of snapping up homes, we'll run out in 2.3 months).
In Fair Oaks it's not much better... 2.4 months to sell 'em all out.
That means if no new homes come on the market, we'll be out of homes by summer. Basically economics says when supply goes down prices go up.... like skyrocket up, in this case. EEKKKK!
HOWEVER... don't look now, but there is a wall of new inventory charging from behind. Maybe an avalanche of homes. You see, California has had a moratorium on foreclosures since December of '08, which means very few new bank foreclosures (REOs) have come for sale. And the moratorium keeps being extended.
In the mean time, many owners are getting further behind on their payments. What seemed like a good idea to give the poor homeowners a break, allow banks time to adjust to the new regulations, and to encourage loan modifications, has also let the steam build up. Foreclosures are backing up, and when they blow, it could be big.
There are currently 7,648 homes scheduled for foreclosure in Sacramento County, according to Foreclosureradar.com. There are another 3877 in default. Currently only 1139 REO's are listed for sale. You do the math!
What effect will this rush of REO inventory have on our market? Well, professor.... I think when supply goes up, prices go down, right? Very good... You get an A.
So where does that leave a buyer today? Do you buy, or wait?
The answer revolves around interest rates. Right now, they are UNBELIEVABLE. Like 5% and below. A 1% increase (to 6%) would result in the same payment as a 10% drop in home prices. Shocking isn't it? So you get a loan today for $200K, you'll pay $1074 per month principle and interest (approx). Prices drop 10% and interest goes to 6%, you'll pay $1079 per month for your $180K loan! The same, only different.... no, the same. (OK, I'll throw in the extra 5 bucks).
So my answer is Yes... go ahead and buy now. IF you can get one! Interest rates are a huge component of the mix and can't be ignored. And even if the onslaught of REOs bring prices down more, you will most likely be ahead in the payment game, since you got such a good loan.
Flickr photos by Krassy Can do It. (Can do what? Buy a house?... Call me, Krassy!)
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Check out my other posts that might be of interest.....
HOME BUYERS AND SELLERS..........Buying a Home, Selling a Home, Loans, What Happens if....
LOCAL INFO................................. Fair Oaks, Carmichael, Sacramento, Folsom, Citrus Heights
ABOUT SALLY DUNBAR.................. How I learned to...., Personal stuff, My Wordless Photos
OTHER STUFF............................... Inspiration, Attitude, Humorous Stuff, Charity, the Economy
TECHNOLOGY, BLOGGING ............. Active Rain, Technology
I recently started working with a referred buyer from the East Coast. He asked what our agreement would be up front. Here's what I told him...
"First of all, I don't ask for a buyer/broker agreement, which would bind you to working with me. My take is, that you really don't know whether we are a fit until you have spent some time with me, and put some miles on my car.
"
I feel that if I do a good job for you, and impress you with my knowledge, skills (and tremendous wit), you will WANT to work with me. I would prefer to earn your trust that way than through a legal document.
"So I don't ask you to make a decision, or commit to anything. Let's just take the next step, which is to start looking at homes. If at any time you feel I am a bozo, that's it... we're done. I only ask that if I show you a home, and you decide to buy it, you work with me on that home, unless I have proven to be completely incompetent. In which case refer me to the looney bin. Please.
"
So there you have it... buying a home in Fair Oaks 101... Sally's style. The graduate version will happen later, once we run into the inevitable problems! Now let's get going!"
I know there is a lot of disagreement over buyer/broker agreements, and other realtors use them successfully. This is just how I approach them. I've never been burned yet by a client, and It's been over 20 years full time. And honestly, not having an agreement has allowed ME to fire a few bozos!
Funny thing is, the first day we spent together, my East coast buyer stuck our his hand, and said "YOU are our realtor... it's a deal."
flickr photos by oooh.oooh and thinkpanama
My broker, just returned from the Realty Alliance conference, which are the top 100 independent real estate brokers in the nation. Sacramento was the "talk of the town", apparently!
We are apparently giving the nation hope that we are turning the corner in this market, with our booming sales. We were one of the first to be hit during this "Repo Madness" which is sweeping out nation, with a record in prices, but it looks like we are the first to be coming out of it.
Our county-wide inventory is down 58% since a year ago (8968 to 5251 currently). Our price per square foot is down 29% (161/ft to $115/ft currently), and appears to be leveling off. We are down to 3.4 months of inventory, from a high of 11.2 months back in Jan of '08.
Sales for the past 4 months are furious, with 39% of our listed homes entering escrow in February '09, compared to 14% last February. This is truly phenomenal.
What does the future hold?... who knows. But for now, interest rates are at an all time low and the buyers are coming out of the woodworks enticed by the sale prices we have. It's fast, furious... heck, we're on fire!
It's a great time to be a buyer!
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Check out my other posts that might be of interest.....
HOME BUYERS AND SELLERS..........Buying a Home, Selling a Home, Loans, What Happens if....
LOCAL INFO................................. Fair Oaks, Carmichael, Sacramento, Folsom, Citrus Heights
ABOUT SALLY DUNBAR.................. How I learned to...., Personal stuff, My Wordless Photos
OTHER STUFF............................... Inspiration, Attitude, Humorous Stuff, Charity, the Economy
TECHNOLOGY, BLOGGING ............. Active Rain, Technology
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For Real Estate in the Fair Oaks, Carmichael, Orangevale, Gold River, Citrus Heights and Sacramento areas of California. I focus on doing what is right for my clients, regardless of my personal gain.
Whoooeeeeee! It's been a long time. 30 years as a broker, and I've loved it... well most of it. There have been a few yahoos along the way, but mostly great people, many who have become my good friends whom I have sold homes to multiple times. I'm mainly in my beautiful town of Fair Oaks, (on the bluffs of the American River, upstream of Sacramento, with the cutest old town known for its wandering chickens), but venture into Orangevale (an eclectic mix of horse property dotted with infill tuscan-style estates), Citrus Heights (good values), Carmichael (where my rental is and my daughter lives), Gold River (beautiful planned development on the banks of the river with miles of bike trails), Folsom (there's more than the prison where Johnny Cash sang - a quaint old town with Victorian homes and access to sublime boating, biking, bar-b-ques, beaching, and... bookreading? ... at Folsom Lake), El Dorado Hills (gorgeous, views, with beautiful homes), Granite Bay ( famous for its schools, rural properties and estate developments, like Los Lagos), Roseville (has everything, plus a super business center), Rocklin (rural bucolic life plus gazillions of newer lovely subdivisions) and Sacramento itself (where I grew up, and hey... Arnold's weekday home!)
Wanna check out homes for sale in some of my favorite Fair Oaks neighborhoods? Here ya go... Old Fair Oaks Village, Northridge Country Club area, Phoenix Field, and Rollingwood. Or if you simply want to search for the good deals on foreclosures, go here.
Yesterday my client suggested I was a real estate encyclopedia, which may have been an accusation that I'm square and use way to many words, or a compliment that I really do know my stuff. I guess sometimes its both.
CREDENTIALS
AWARDS AND HONORS
Additionally, in 2006 Sally Dunbar was chosen out of 900 agents to receive Lyon Real Estate's prestigious C. Mike Messina Memorial Award for excellence and professionalism.
I have been married to David Dunbar for nearly 30 years, and he's still my sweetie... love that guy to death. He's a contractor who only does things one way - the right way. We have a ton of fun together.
We have 2 daughters, and we should have had more, but who knew they would be so entertaining and fabulous? Roxy is a Financial analyst and UC Davis graduate. She saves me every time I'm half-way through a spreadsheet and realize I am not a financial analyst. Thank God those things email well. She's a great dancer, and we both have an obsession for cowboy boots. Christy is a Senior at Cal Poly, San Luis Obispo, and is another great dancer. She's our comedian, and has brought the joy of newfangled music to my life. Thanks to her, my favorite group is Incubus, and Everlong can bring me to tears! I have lived in Fair Oaks since 1979, having returned to Sacramento from Santa Barbara, where I had lived since high school (don't ask who would leave Santa Barbara for Sacramento... it was for love, and it was the best choice i ever could have made!). Our family loves this area, and is involved in bike riding (ask about our world-class bike trail), sailing (on Folsom Lake), walking our fabulous trails (you feel like Lewis and Clark), snow boarding (I found a two carat diamond ring in the snow once), water polo, swim, and occasional jaunts to Sand Mountain and Florence Oregon where we go duning with our extended family (ask about our dutch oven pies).
I love my area and can't wait to show it to you! And I promise you, we'll have fun! (If you have skipped over my discreet links above, I'm done with gentle reminders! You HAVE to watch my video of what I love about Fair Oaks. It's my town, and I LOVE it. I want to share it with you. Aw come on... tried to drop subtle hints!)
I hope you will have fun prowling around my blog. Check out my posts on BUYING A HOME, SELLING A HOME, STAGING, Getting a loan, the Economy, Things I've learned in life, and some fun stuff just for thigh-slappin fun.
I'LL ALWAYS DO WHAT'S RIGHT FOR MY CLIENTS.
A few years ago, Gloria called me to list her home on the bluffs of the American River. I was excited! She then confided she was recently widowed, and needed a change. She was sad. I told her she had the best investment she could possibly find - a rare home with a smashing river view. I suggested she strip wallpaper, repaint, install new carpet, replace her windows (to improve her view!), and paint-out her dark-beamed ceilings. And to then see if she needed a change. So she did. And today, 8 years later, Gloria is still enjoying the view from her lovely new windows. And her home has tripled in value! While I talked myself out of a sale, it was the right thing for Gloria!
I do the right thing for my clients because it's the best way to lead your life. If you want to buy or sell, call me. We'll figure out the best way to proceed, then we'll make it happen. You have my word! And if that means encouraging them to do nothing. then I've done my job well.
DRE lic # 00809499
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TESTIMONIALS about Sally Dunbar
"I know many real estate agents in the Sacramento area, but when it came to choosing an agent to list and market my elderly parent's home in Del Dayo Estates, I knew I wanted Sally to be the one. She is enthusiastic and diligent with her listings and her follow-up in the whole process was fabulous. She was wonderful and patient with my dad and kept all of the family members informed each step of the way. I highly recommend Sally for all of your real estate needs." Patti Codiga
"Sally really knows her stuff." Dr. Gregg Heise
"After 274 days on the market with another reputable agency we called Sally. She presented her marketing plan, and walked through our home and made several suggestions, which we implemented immediately. With her changes, our home just shined! She had an offer for us in 11 short days. Even better, we closed in 15 days. Sally's professionalism, candor, and expertise were the best gifts we gave ourselves for the holidays!!!! We will always recommend Sally to our friends and family." Curtis and Rosemary Asby
"Sally is a true pleasure to work with. She was very informative, patient and extremely understanding. Sally is a true professional who we would recommend to anyone we know." Paul & Ida Mamika
"Sally was awesome. We will recommend her to friends and family. She was the only professional aspect I witnessed in this cutthroat industry. We were fortunate to have found her!" Randi & Allen Hampton
"Sally's highly competent negotiating skills were of great benefit. She got an excellent purchase price for us!" Doug & Mary Kuhl
"Sally is by far the best agent I know." George Raab, her Dad
"Sally has empathy for her clients, the knowledge and negotiating skills to make transactions happen, the marketing savvy necessary to represent any property and the drive to get it all done. There have been few people who I have observed in the some 30 years that I've been in the real estate profession who have combined so many elements into such an outstanding career. Her career can only be described as exceptional. I'm proud to work along side her." Clay Sigg, Vice President/Managing Broker, Lyon Real Estate
"Without Sally's support, perseverance and professional expertise we wouldn't have been able to purchase our first home. I respect Sally not only for her expertise and tenacity, but also for the amount of effort and pure hard work she puts into her job. Throughout the entire transaction, Sally made certain that my best interests were being met. She even made the extra effort to be present at the signing of escrow, which is another example of her dedication to her position. Her efforts are to be loudly applauded by this happy client. " Sarah & Rick Walker
"I found Sally to be caring, efficient, and professional beyond the word. Her follow-up with detail was impressive." Carol Delzer
"Sally listened so well we bought the first home she showed us! It even matched our decorating. She really keyed into our needs." Patricia & Jerry Hall
"We will, as we always do, tell anyone and everyone about you! And of course any move or change we make MUST have a "Sally Dunbar" mark." Gail & Mike Arno
"Thank you for all of your hard work in finding and helping us buy our house. We know it wasn't an easy process, so thanks for sticking with us through it all. You have our future business and well as our sincere recommendations. " Kurt & Debby Smith
"You are wonderful and we truly appreciate your help, guidance, professional knowledge, and above all else your sweet self." Joe & Snow Nemeth
"Sally Dunbar did a fantastic job. I cannot think of one thing that would have made my experience more pleasurable." Wade Serrian
"Minnie and I really want to thank you for your work in selling our home. Your professionalism, attentiveness and overall outstanding knowledge was always evident. We appreciate you." Bob & Minne Buyse
"Thank you for making the house sale so easy. I did just ‘sit home' and let you do it all. You are the best!" Alison Majer
"You are such a pro and always do such an amazing job. Thank you." Nancy & Gene Mansfield
"How great a realtor are you? Let me count the ways:
You tirelessly showed houses to me and quickly learned which ones were ‘me' and which ones were not. You saved me a lot of time. You found out I was almost 55 and you knew that 55 was the magic age to transfer an existing tax base. You told me I should wait 8 months before looking - after you had spent countless hours showing houses to me! You saved me $140/month in taxes. You gave me suggestions for simplifying my home so that it would show best. And you suggested small but impacting improvements. You helped the house sell quickly and at top dollar. You knew the market in my area and in other comparable areas and helped me set a reasonable price. You attended the loan signing with the title company for the house I was buying and caught their mistakes, saving me $2,000 in closing costs. You knew the laws so well you were educating the people at the title company and giving them documentation on a lesser-known law which protected me. Two escrow officers said ‘Boy, you have a really good realtor'. You attended the home inspection of the home I was buying, and helped me determine what the seller should be requested to repair. When my first buyers dropped out at the last minute, you delivered the bad news as soon as you learned it. AND you had already contacted the realtor for another offer we had received on the house and they were still interested! As a result, the close of escrow was only delayed by one week. You put me in touch with loan brokers, moving companies, and other organizations that I needed. You answered my e-mail, answered my phone calls, answered my many, many, many questions. You calmed my anxieties and you rejoiced with me over my new home. Sally, you are the best!" Marsha Raigoza
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