Don't accept a Rolex as your home purchase deposit

As soon as you accept an offer for someone to buy your home, the buyer has to send over an all-cash good faith deposit.

This deposit is typically 3% of the purchase price of the property and is held by the escrow company in an escrow account just in case the buyer breaches the contract and you want to try to collect for damages.

If the buyer wants to send over anything but cash as their deposit, say no!

I have heard of buyers trying to use necklaces, #Rolex watches, and all types of other items for their deposit.

There are a few problems with this.

1) Will the escrow company hold a physical item as a deposit?

2) What is the true appraised value of the item?

3) Is that item real and authentic?

Because so many problems can arise out of this, only accept cash as your deposit.

If the buyer refuses, find yourself another buyer.

The most unique home on the market this week in Los Angeles

Echo Park has really changed over the years.

Back in the day, Echo Park was not exactly the safest neighborhood to be in.

But now it's filled with beautiful homes that demand a high price tag.

This charming “Treehouse” vertical cottage built-in 1926 makes the most of its limited space.

Has 1 bed, 1 bath on main floor and a bonus space downstairs w/ separate entrance plus a finished attic.

This home is currently on the market and is asking $819,000.

Regular Recording vs. Special Recording

I highly recommend doing a standard recording.

In that case, you don't have to do anything!

You are simply waiting for a call from your agent to tell you that you now officially own the property.

A special recording should only really be used in an absolute must circumstance.

Unless it's a must, it won't kill you to wait the extra day to close escrow.

Do a "special recording" to close faster on your home purchase

Under normal circumstances, you do not close escrow the same day your lender funds your mortgage loan.

You would normally close the day after the loan money is sent to the escrow company.

However, I have come across certain circumstances where the buyer of a property has to close as soon as possible and needs to close the same day the lender funds the loan.

In that case, you can do a "special recording". This requires a little more work on the buyer’s part.

As the buyer, you have to go down to the county recorder's office, wait in line, fill out some paperwork, then get the special recording completed.

It's actually a really big pain in the neck!

But, if you are in a hurry to close escrow, a special recording is available to you.

74% of home purchase contracts contain contingencies.

The 2019 Realtor Confidence Index Survey says 74% of home purchasing contracts contain contingencies, with the most common ones pertaining to home inspections, getting a acceptable appraisal, and obtaining a loan.

That means 26% of buyer home purchasing contracts do not contain any contingencies at all.

Sellers LOVE non-contingent offers.

That means that if the buyer backs out of the deal, for whatever reason, the buyer could lose their deposit to the seller (usually 3% of the purchase price).

Wouldn't you find a non-contingent offer appealing if you were selling your home?

Just Sold!

In December 2018, I showed my clients this beautiful home. They fell in love with the property and I was able to facilitate the purchase for them at $1,075,000.

Just 8 months later, they unexpectedly had to put the home up for sale. We knew the market went up over the previous 8 months... but how much? We decided to list the home at $1,090,000. At our limited showing open house (2:00pm - 2:30pm), we had 25 buyers sign in. Each of those buyers brought a couple of friends/family members with them. We counted about 80 people that had lined up in the street outside the home. It looked like a block party!

In the end, we received 5 offers. After a fierce negotiating battle among the buyers, a wonderful family (my clients that I brought to tour the home), ended up winning the property. The selling price was $1,155,000. That's an $80,000 profit for the sellers in just 8 months!

Keep in mind, no remodeling had been done to the home over the 8 month period. My buyers said they saw my marketing video (OakmontWoods.com) and were intrigued by the back story I gave about the community. I am very happy all worked out for the sellers, and that I was able to bring another great family to the Oakmont Woods community.

We're hiring! Real estate agent assistant needed.

Our family owned real estate business is growing and we are expanding our support team.

We are hiring a real estate agent assistant/project manager.

We are looking for someone who is ready to support our social media accounts (20K followers on Instagram - @DanielLosAngeles), manage our Customer Relationship Management systems, and help with a variety of projects that will generate client leads and grow the company even further.

If you are organized, knowledgeable about social media, and great with project management, contact us today!

Link below for job description and instructions on how to apply.

contemporealtors.squarespace.com/hiring

Thanks!

5 days before closing, lender denies the loan

This is my 8th real estate transaction over at 4610 Densmore Ave.

The buyers insisted on using their lender to purchase the condo... big mistake!

The lender failed to come through with the loan.

Luckily, I always have a back up plan.

Pending home sales are up 8%

California saw a 3.1% uptick in pending home sales in August, an increase of 8% from a year ago.

Economists say home sales are forecasted to rise in the coming months and into 2020.

I think their prediction will be correct!

Home just sold for $85k more than it was bought for only 8 months ago

I represented both the seller and buyer on this property!

The sellers are sad to see this property go, but they told me they are very happy with the outcome.

The buyers are thrilled to be moving into such a exclusive neighborhood.

I am happy both parties were able to successfully achieve their goal!

Daniel, what's the best deal in Burbank?

Quiet, upscale, and best of all... you can keep a horse in your backyard!

This home is located in one of the best areas in Burbank.

Because this property is a fixer-upper, it's great opportunity to get into this neighborhood at a major discount.

That's why this is my favorite home to come on to the Burbank market this week!

When do we hand over possession of the home to the new buyer?

Let's say an unexpected emergency comes up and you, the seller, must now stay at your property longer than what you agreed to when you initially accepted the buyer's offer to purchase your home.

You and the buyer, during escrow, can make an amendment to the contract to change the day when you hand over possession of your home.

As long as it's put in writing in a amendment and signed off on by all parties involved, possession of the property can change hands on whatever day everyone agrees to.

Possession of your home must be turned over by 6pm.

The standard real estate purchase contract states that possession of a property from seller to buyer must be turned over by 6pm on the day escrow closes.

So even if you record, and close escrow at 8am in the morning, the seller is still allowed to remain at the property until 6pm.

Keep in mind a standard contract can be changed.

As long as the buyer and seller agree, the seller could stay in possession for days... months... years... the entire life of the seller... whatever is agreed upon.

What is a "recording"?

You officially become the owner of the home once recording takes place.

Recording, AKA having the title of the property put in the new buyer's name, can happen any time between 8am-6pm.

You are not allowed to have the keys to the property before recording has taken place (unless the owner has given permission).

What happens as we get closer to escrow closing?

All of these events take place within 5 days of closing escrow on your property.

Since you know this will be a busy time, make sure you plan and request time off of work as soon as possible.