Real Estate 

e-Newsletter

by Cynthia S. Radom 

Award-winning Certified Seniors Specialist REALTOR® - Specializing in Listings and Trust Sales

Since 1994

Coldwell Banker Realty - Beverly Hills CA

When a Seller accepts a purchase offer for their property, that doesn’t mean the sale will close. Escrows are canceled all the time for a myriad of reasons. However, a Seller can only cancel an escrow without defaulting if the Buyer does not perform.

A backup offer is when another Buyer wants to be next in line to buy the property in case the initial transaction goes south. A backup offer can be negotiated before the sale is recorded and several offers are acceptable.

A backup offer is fully negotiated in writing with one specific caveat: Before a new escrow can begin, both principals must cancel the existing escrow. Therein lies the first hurdle. Getting a Buyer and Seller to agree on the return of the initial deposit, in full, partially, or settled by arbitration, can lead to a lengthy holdup.

Pros of a Backup Offer

- Puts pressure on the existing Buyer to perform, knowing there is another offer or two.

- The backup may have better terms or a higher purchase price than the accepted offer.

- Negotiations are complete.

Cons of a Backup Offer

- The Buyer may have found another property and canceled the backup offer.

- All inspection reports from the initial transaction must be given to a backup Buyer who may want to re-negotiate if there are issues.

- Many Buyers are hesitant to submit a backup offer, knowing the Seller will use it to negotiate with the existing Buyer.

Another Option - Reactivate

A new Buyer may be waiting with a better offer who didn't request a backup position. When the initial escrow is canceled, the Seller can decide to reactivate the listing and ask for new offers if there is no signed backup offer. That option may bring multiple offers, which always benefits a Seller. And no time has been wasted on negotiating backups. A fully executed escrow cancellation assures a new Buyer that the sale can be closed.

THE NUMBERS ARE IN!

Click here.

Caveat Emptor

The warnings about business dealings couldn't be more precise. Let the Buyer beware! You get what you pay for! When it seems too good to be true, it's probably not true!

Buyer Beware

Webster defines the Latin phrase Caveat Emptor as the principle that the Buyer alone is responsible for checking the quality and suitability of goods before purchasing. Going it solo doesn't have to apply when buying real estate. Hiring a trusted partner, a professional REALTOR®, to represent a Buyer in the most significant financial purchase of their life is a wise decision.

According to CA law, every Buyer who wants an agent to represent them in a property purchase must sign a Buyer Representation Agreement before viewing a home for sale. The contract terms include who, where, when and how an agent will assist in identifying and helping their client buy a property. Also, per the new rules imposed nationwide, any fee the Buyer is willing to pay for their agent's services.

Important Decision: Hiring an agent or going it alone is not a decision to be taken lightly and should not be based on saving money. Recall the saying: A Man Who is His Own Lawyer Has a Fool for a Client. Enough said!

A basic real estate transaction requires over 150 steps and almost an equal number of forms. When discussing the Buyer Representation Agreement, a Buyer's agent will present their experience and state their value as your potential representative. After all, that is what you may be paying for under the new industry rules.

Remember that hiring a part-time real estate agent hobbyist is no better than self-representation. Purchasing a home requires legal, financial and process expertise. Hiring a full-time, professional agent is worth the potential liability in a highly litigious industry. A Buyer's payment only applies if the Seller does not offer to cover the Buyer's Broker fee in part or in full. It's all negotiable.

Not My Kid...

On behalf of all property agents and all Sellers, please leave the kids and dog at home when house hunting. Listing agents are responsible for our clients' homes during showings and open houses, and we can't be everywhere at once.

It's always the indignant Buyer when asked, "For safety reasons, please keep your children with you," whose kid goes hog wild when left unattended. Or the Buyer who thinks it's okay to bring an outdoor baby stroller into the house without forethought of scratching wood floors, leaving dirt tracks on carpeting or chipping walls when turning a corner.

What may be acceptable behavior at home is unacceptable at homes for sale. Young kids can't differentiate between their home and a stranger's when going to a viewing. Kids will be kids: hands tracing along white walls, running from room to room, picking up an item of interest, opening the refrigerator, jumping on a bed or flushing a toy down the toilet and causing a flood. Furthermore, parents shouldn't be expected to hold a youngster while examining property. That's understandable.

An example was recently reported about a six-year-old who ran into a closed 1970s sliding glass door. Running from the entry, full-speed ahead, into the slider overlooking the backyard and no shatter-proof glass. Neither the agent nor her parents could stop that tragedy.

Fur Babies: Some prospective home Buyers are tied to their fur babies and take them everywhere. Show me a dog owner who can stop a leg from lifting when the need arises. Pooches love to mark a new territory with their scent; try stopping that mid-stream urge. Or a dog chowing down from the Seller's pet bowl. Not everyone welcomes a strange dog nearby who may be allergic or fearful.

Although this plea may not be relevant to you, please share this with young parents, grandparents and dog lovers. House shopping is an outing for adults only!

Most Sellers of CA real estate must complete transfer disclosure forms for residential one-to-four properties. Answers are used to tell the Buyer the good, the bad and the ugly about the specific dwelling. The only exemptions include these types of sales:

- REO's and Foreclosures

- Probate

- Bankruptcy

- Government Entities

- Non-residential portions of a mixed-use property

- Irrevocable Trust owners

Some disclosures are still required even if the Seller has never lived in the property (Successor Trustee), is a flipper/investor, an LLC or a corporation, lives out-of-state, selling "as-is", short-sale, a

FSBO (for sale by owner) or the house is going to be razed by the

Buyer who may decide to keep.

Disclosure statement forms can never be waived, even when the Buyer and Seller agree. When a Seller cannot answer a specific question, the answer is NO!

When diminished mental capacity is an issue and someone else has durable Power of Attorney, it is wise to consult with an attorney.

Tidbits of News!

- Property Insurance: If you need or would like a quote on property insurance, including fire coverage, please e-mail a request to me, and I will forward a list of nationwide companies or brokers, including contact information. The insurance moratorium during the state of emergency, when quotes were temporarily stopped, is lifted and policies are being considered according to the home address.

- Fire Displaced Students: Two weeks after the LA firestorm, 1,100 new students were enrolled in Newport Beach schools.

- Animal Categories: As a tenant or a landlord, be advised of the three animal classifications:

Service: trained to assist with tenant's physical disability.

Support: An "emotional" support companion requires official written certification ($50 online!!!) to establish a need.

Pet: A landlord can only increase rent for a "pet" but can't charge a larger security deposit and no fee for a service/support animal.

- Your Successor Trustee: Selling real estate changed dramatically in 2024 with new laws, disclosures, commission structure and a lot more forms. In many cases, the person(s) you want to distribute your Trust has not sold a CA property in years or ever. Keep your Successor Trustee informed by sharing every issue of this Real Estate Newsletter. Also, provide my name as your trusted agent and recommend that I help them through the selling process, Cynthia Radom 310-779-1715.

Website: RealtorRadom.com Award-winning REALTOR®

Specializing in Trust sales

Moving to a new home can be incredibly exciting. It opens a world of new friendships and experiences and can even foster positive self-growth as you navigate fresh surroundings that keep you mentally and physically healthy. Yet, relocation is not without its challenges. Whether you're relocating across the country closer to family, nearby to a Seniors residence or to a condo fill your move with more joy by following these stress relief strategies provided by Verywell Mind.

1. Focus on the positives
2. Prioritize self-care
3. Stay organized
4. Consider moving as an opportunity to weed out
5. Steer away from a perfectionist mindset
6. Maintain existing relationships
7. Get out and meet new people

Also, utilize the experience and expertise of REALTOR® Radom, a Seniors Specialist for 30+ years.

Contractor Scams

One in 10 homeowners has been a victim of a contractor scam, costing thousands of dollars in losses. The most common scams include doing quick, low-quality work without a contract, providing a low-cost estimate, then significantly increasing costs during the project, substituting leftover materials while charging for new ones and lying about permits.

Tips to Avoid Contractor Scams - Ask to see proof of license and insurance or confirm on the website CLSB.ca.gov. This provides extra security, and a contractor-generated surety bond (guaranteeing the work will be completed) provides financial security against scams.

- Get everything in writing and review it carefully. It's not easy to win a legal action against a home contractor based on an oral agreement, but written proof can be successful if it includes the contractor's name, information, and projected start and end dates.

- Never pay the whole amount up front. Home improvement contractors can't ask for more than $1000 or 10% of the project cost, whichever is less. Article: REALTOR® Magazine

Remove the Guns

Property Sellers, there are strangers walking through your home. If you own a gun collection displayed in a glass case or antique guns exhibited on a wall, please remove and store off-site. Even a knife set should be removed from the kitchen counter before showings. Staging a home includes a safe environment.

LA Times Analysis

In case you missed this article, it's worth reading.

Excerpts from Merrill Lynch article

Scammers work hard to win your trust, but they often give themselves away if you know what to look for.

Watch for these three red flags

1. You receive an unexpected call, email or text request from your bank to transfer funds or provide personal information. It could be an imposter.

2. A business you trust emails new instructions for transferring funds to complete your purchase. The email address looks legitimate, but it may have been taken over by a scammer.

3. You see an ad or are contacted to invest in a “great opportunity” promising low costs, high returns and easy riches. It’s probably too good to be true.

Other scams targeting Seniors

- Your grandchild is in jail and needs money for bail.

- Your bank account has been frozen and we need to unlock it.

- Imposter develops a lonely hearts relationship through

e-mails. Then wants to take it to the next level and come for a visit, but they need the plane fare. Note: I had calls from two men in southern states who experienced the same scenario. A woman, who claimed to be living in one of my Beverly Hills estate listings, gave them the same pitch. When I asked why they didn't realize it was a scam, both men offered the same reply, "I am a very trusting person". A hard lesson to learn.

As a Seniors Specialist REALTOR® I have heard too many real-life scams costing people money they can't afford to lose. Please beware!

A Home Safe

Do you have a safe in your home?

Provide a written note now to your Successor Trustee with the location, combination and/or a key. Also, list the contents and any special opening instructions.

Linkage Fee

A precursor to the ULA tax to fund affordable housing, a linkage fee, was added in 2017 as a deed covenant on major remodels or additions. Click here for info and costs and review your title report before selling. A linkage fee can be a hefty tax.

911 List

Today is the day to create an Emergency Evacuation List, no matter where you live. Items you need or want to take with you if time is of the essence to gather and get out of your home quickly. Keep the list near one of the items so you can easily find it.

Fixer-upper Homes

Zillow reports that "fixers" are seeing the biggest dip in sale prices (7-8%) in several years as labor and supply costs rise.