Sometimes a buyer needs to sell a house prior to buying another. I should say most of the time because most people (but not all) cannot qualify and afford carrying two houses at once. Makes sense, doesn’t it? And often that same buyer is so excited about their new adventure of moving, they find a new house they LOVE prior to selling theirs.
What’s a buyer to do… ? What’s an agent to do? The buyer can write an offer on the new house “subject” to the sale of their current house. The California Association of Realtors has a form “COP” to do so.
But why would a Seller accept an offer with a long, doubtful contingency and tie up their property in an escrow that is so uncertain? They might if they are desperate but even then, they most often reject this kind of offer (especially if they have a smart listing agent).
So what’s the buyer to do? The solution lies in the form COP (contingency on the sale of another property). The buyer/seller’s best solution is to get their house on the market before falling in love with a new house, pricing it very aggressively (review your market analysis with their agent and price on the low side for immediate offers), doing a pre-inspection and repairing safety items, making sure your agent has a strong marketing plan, and going into escrow quickly. Because you’ve done the pre-repairs the buyer/seller can short the inspection contingency and the moment your buyer removes their inspection contingency and you are strongly certain about your loan, write an offer on the new house you love.
The COP allows you to present a strong offer with a short contingency for the sale of your current property and makes you a much more attractive buyer. It can be done. I’ve seen it happened and with an up-swinging busy market this Spring 2012, it is a great solution.

John Maxwell wrote:

You have a 10% chance of success with your goals when you HEAR an idea you like; a 25% chance of success when you consciously decide on them; a 45% chance when you decide WHEN you will do them; a 50% chance when you plan HOW you will accomplish them; a 65% chance of success when you have committed to another person that you will achvie them AND a 95% change of success with your goals when you set an appointment with someone to whom you are accountable. Goal setting is work… make the most of it and find someone to be accountable…..

“Looking ahead, mortgage loans will be viewed by private investors as riskier, and they will look for higher rates and more restrictive terms to compensate. The easiest way to prevent this is to retain the current system of having the federal government assume the default risk on 95 percent of all mortgages, which will require that plans for phasing out Fannie Mae and Freddie Mac be shelved indefinitely.” –Jack Guttentag

Over 60  real estate agents that work at the Santa Monica Keller Williams office coach with me. Of that number 41% of them are currently writing offers, have listings and/or are in escrow.  The average is generally 20%. Coaching is a powerful experience that supports action, commitment and performance.  It isn’t for everyone and for those that are willing to be coached, willing to be trained, willing to listen, willing to try things outside their comfort and most importantly, we willing to allow someone into their work…. it produces results…………….

Getting ready to teach the new agent class on Monday at 1:30. a new awesome group.

his week there where 3 new listings in Santa Monica from  Keller Williams.

How can you loose?  Right now it will be hard?  Real estate is down 20% all over the westside and the last time that happened, I bought in Santa Monica.  Not to many years later, I gained $400,000 from selling that property. This allowed me the opportunity to purchase a dear home and have an affordable mortgage.

If you take the opportunity to purchase at these low prices you are setting yourself to accomplish a similar outcome.  There’s no guaranteed and on the westside prices are never below the prices at the last low cycle.

David Bach states that statistically, owners net worth is $171,000 while renters net worth is $14,000.   Call me and I can help you fulfill that dream.

(310)395-6028

Today we walked all over the Warehouse district to find breakfast until we met a tour guide that sent us to the French Quarter to eat at Oceania’s near Bourbon street.  I had a huge omelette, decent coffee and a sweet time.  Then we walked around and I hit a quiet hour with friends of Bills.  From there we walked to the French Quarter to pick up a tour, missed the one we thought we’d take, realized we were a little hunger, so decided on a salad at Stanley off Jackson Park.  Love the jazz in the background.  Grabbed a mule buggy tour through the French Quarter and learned some great stories.  Of course after that, we need a Biegnut at Cafe Du Monde where I proceed to spill my hot chocolate all over the front of my white vest.  It was worth it..   After all that sugar we had to work out so grabbed a trolley to the Garden District where we wandered through densely tree lined streets to see the plantation mansions in their various conditions.  Some in need of repair, some in the middle of rebuilding and other quite perfect.  Talk about owning a potential lemon, buy a house that was build in 1870!.    The walk back to our hotel took hours but we worked off that donut.