Life and Real Estate in The San Ramon Valley
Archive for December, 2011
The Real Estate Purchase Process in California
December 12, 2011
The home buying process in California has become more complex over the years with more disclosures being required by law every year. And now there are also distress sales to consider. This article is my attempt to clarify the process so you will know what you are in for when next you decide to buy or sell.
I am assuming that you have found the home you want to buy and you have an experienced agent who is representing your interests in the transaction.
In the traditional or “Regular” sale, you often have an owner-occupier who is emotionally attached to the home. An offer that is close to what similar homes have sold for recently has a good chance of being accepted and then you typically have 10-14 days to complete your inspections, review seller disclosures, make final arrangements for financing and remove all contingencies prior to closing the transaction, typically 30-40 days after your offer was accepted.
Your agent should arrange for all inspections that are appropriate such as home, roof and chimney inspections. The seller will often pay for a termite inspection and correct any major issues that are noted. Anything of concern that arises from other inspections will most likely be a matter of negotiation between you and the seller.
Seller disclosures should be carefully reviewed and these will run to many pages. A seller is required to disclose anything of a material nature that could affect the value of a home including defects, past repairs, traffic noise and many other things. If a seller omits anything they could be liable for damages. So the seller needs representation and guidance from a very competent agent just as the buyer does.
Final financing arrangements refer to the qualification of the property for financing. You should already been personally approved but the property has to appraise and there may be other conditions to be met before funding.
Having removed all contingencies, you will then sign the final documents, usually at the Title Company, then once the loan is funded, the transaction is recorded and the home is yours.
This is when the funds are distributed, including agent commissions. It is worth noting that virtually all agents in California are paid on a commission only basis. They pay all of their own expenses and share the commission paid by the seller with their broker.
Distress Property Sales
That is how the “Regular” sales process works. Short Sales and Foreclosures are a little different.
The contract on a short sale is still with the owner but it has to be approved by their lender. So once the seller is in agreement, the offer is forwarded to the lender together with a “hardship letter” and other supporting documentation. Then the wait begins.
It typically takes around a month to get any response from a lender and that will either be a rejection or an agreement in principal. If it is the latter, they will arrange for an appraisal and then after another couple of weeks or so, they will hopefully respond with a price they are willing to accept along with any other conditions for completion. The buyer can then have any desired inspections (all at buyer expense). Note that short sales are always sold “As Is” so there is no negotiation of repairs.
With bank owned foreclosures (REOs), the process is a little simpler. The bank should respond to an offer within 1 to 7 days and there may then be some negotiation before reaching agreement. There is then a 7 to14 days period for inspections (again, all at buyer expense) and unless the buyer then cancels the transaction, he is committed to completing the purchase. Bank owned sales are also always “As Is” and unlike short sales, there are no seller disclosures.
Are short sales and foreclosures worth the effort? Sometimes. Each case is different. I have seen some really good deals go through with both, as well as some not so good. As with many situations, the mantra should be “Let The Buyer Beware”. I can’t stress enough the need to have a good agent to represent you in any kind of a distressed property transaction.
Restaurant Review – Incontro Ristorante, 455 Hartz Avenue, Danville
December 12, 2011
New to Danville but no newcomer to the local restaurant scene, Incontro established itself in San Ramon as one of the best Italian restaurants in the area. They recently took the brave step (in this economy!) of moving to Danville. It was time to see if it had paid off.
Sylvia and I visited early on a mild Friday evening and having parked in their private lot at the back of the building, walked through the bustling outdoor patio to the front of the attractive building that Incontro has made its own. This was previously a quite run-down place housing a Mexican restaurant, but the owners of Incontro have completely gutted it and transformed it inside and out, into a gorgeous restaurant, the likes of which Danville has never seen.
As soon as you enter, you know that this is a success. The attractive bar at the front was packed and despite having plenty of tables, the restaurant area was almost full. This was shortly after 6pm on a Friday. Don’t even think of going without a reservation.
Incontro is made up of a number of separate rooms, giving it the feel of a house. The décor is warm and inviting with extensive use of wood paneling, attractive art works and other décor items and the lighting has been designed to perfection. It looks like no expense has been spared and yet it is a restaurant that immediately makes you feel at home and relaxed.
Thankfully, the menu appears to have changed little with the move. There are relatively few choices but what they do, they do well. We skipped the appetizers and Sylvia opted for the Angus New York steak with a tarragon and wine sauce, while I had the pan-seared duck breast. Both typical dishes that you might find on an Italian restaurant menu but rarely cooked and presented as well as at Incontro.
We followed our main course with a shared Pannacotta and you can see this traditional Italian dessert on their web site at incontrodanville.com. This is a dish I rarely see on menus and Incontro prepared it to perfection.
We accompanied our meal with a pleasant bottle of Carneros Chardonnay that we brought with us. I should mention that they have a good selection of wines by the glass and the bottle but they are predominately (should I say, authentically) Italian and our palates lean towards California varietals.
So in summary, this is a great move for Incontro and also for Danville. Their risk has paid off and they are now established as one of Danville’s premier fine dining restaurants.
