Real Estate Tips and Information by Karen List

Buying and Selling Homes in Santa Clara and Alameda County

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Remove Your Loan Contingency!!!

March 7th, 2017 · No Comments · bay area, buying a home, first time buyer, home for sale, home seller, homebuyer, real estate, san jose home

For this townhome style I sold in San Jose for $389,000, I was the agent for the sellers. They actually bought this home with me as their agent about 15 years ago! And, to make things even more interesting, back then, in 2002, I was the listing agent for this home as well, and dual agent at that time for these clients. And, to take this back even further, I sold this home to the previous sellers and was their buyer’s agent back in 1998! So, I have sold this unit 3 times since 1998, going back 19 years!!! Yikes! I am aging myself!

This was a very interesting listing this time around. I was fairly confident we would get multiple offers for this home. It’s just adorable and a really nice setting. The sellers remodeled before selling and it just looked great! The one downfall is that it is a 1 bedroom, which does not have as big of a market as places with at least 2 bedrooms, although, it does have a loft area that is great for an office, den, bedroom, etc…although for some, the loft area just wasn’t quite what some people needed for additional space and really needed that 2nd bedroom, so that turned into a factor, in which many buyers really needed another true full bedroom.

But, the interesting part, was that there was a lot of interest in this home and I feel we would have had multiple offers and things go more as I expected, but for some reason, buyers were just dropping like flies when it came to financing. For some weird dynamic that I can’t even explain, there were a number of buyers that liked the home and wanted to make an offer, but their financing was falling through the cracks. Luckily for us, we didn’t accept any offers in which financing was an issue, in fact, luckily, the buyer’s agents were letting me know that their buyers weren’t able to even make an offer, due to issues with their buyer’s financing, so we didn’t waste time and effort on anything that could not fly.

For the transaction itself with the buyers that did get their offer accepted, the loan part of the transaction was very frustrating. Firstly, the appraiser didn’t even make it out there in a timely manner, and then the loan itself, was just one frustration after another. They did pull it off in the end, but we closed exactly 1 week late, and the loan officer would not even give the green light to remove loan contingency until Day 36 of our contract. We had the loan contingency removal carrot dangling in front of us for weeks, and practically every day, the loan officer would ask for just one more day, which would turn in to many more days. We had 5 loan contingency extensions. I felt confident the buyers would pull it off, but of course, the clients got nervous, and I totally understand why.

What was even more frustrating about the loan contingency was that some of the conditions were things that should have been handled in the first week, like a condo cert, HO6 insurance, and at the 11th hour, the loan officer was scrambling to get these items that should have been done upfront and not be holding up our closing. So, definitely, the loan contingency situation was a huge frustration and also a concern for the sellers, because they were concerned the buyers were not solid and the transaction may even fall through. But, we got through it, so it’s all good now. The sellers moved to Florida where prices are more than 1/2 the cost of San Jose. So, things all worked out in the end, but it was a roller coaster ride to get there.

Just Sold in San Jose for $389,000

Just Sold in San Jose for $389,000


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