Whether you are looking to buy or sell, we offer the highest levels in real estate expertise and professionalism. Don’t hesitate to contact us and allow one of our real estate professionals to help guide you through that process!

As you browse listings on CDanJoyner.com, you may find homes you like that appear to be unavailable, due to some kind of contingency. If you find the perfect home, but it’s labeled Active Kick Out or Contingent, should you pursue it or forget it?  

The reality is that contracts fall through sometimes. If you have a back-up contract, you can buy the home should it come “Back on Market” or “BOM.”

Active kick out
Active kick out means the seller has accepted a contingent offer, such as the buyer has a home to sell before they can close on the seller’s home. The seller can reserve the right to accept a better offer and “kick out” the previous buyer. They must give the first buyer 48 to 72 hours to either remove the contingency and move forward with the purchase, or back out of the contract.

Contingency
Nearly all offers-to-buy have contingencies. Typical contingencies include provisions that the home must meet the appraised value by the mortgage lender’s third-party appraiser, or it must pass a professional third-party home inspection to the buyer’s satisfaction. The buyer may make the contract contingent upon the lender funding the purchase.

Option period
Option periods give the buyer time to get financing and complete home inspections and the appraisal. Unless the buyer acts on a contingency, the home is considered out of option but it can still fall out of escrow.

To learn more, contact your C. Dan Joyner, REALTORS sales professional.

What should you expect when you buy a model or “spec home” from a builder?

A model home features upgrades to show the builder’s floorplans to advantage. If you can wait until the builder sells all their inventory, you may get the model at the initial offer price and with more upgrades than other homes in the neighborhood.

A “spec” home is move-in ready. The clock is ticking on the builder’s bank loans, materials and labor, so if you’re preapproved by a lender and have no contingencies to delay closing, you can move in quickly.

Many builders have their own contracts, so you should be represented by your C. Dan Joyner, REALTORS agent. Builders won’t negotiate price because of other homes in the subdivision, but your agent may be able to negotiate free or at-cost upgrades like adding a fence or back yard sod. The agent can help you negotiate better terms, see you through inspections, and make sure the builder performs as expected.

Shop for new homes with your real estate agent. If you can’t, inform the builder or their in-house salesperson that you’re represented and offer your C. Dan Joyner, REALTORS agent’s contact information. Builders won’t pay the agent’s commission if you bring them in after you’ve already toured the model or spec home.

Market conditions are like a weather report; they show you what to expect so you can make plans, pick your listing price and decide on your marketing strategy.

One thing is certain: Markets are either going up or they’re going down, so as conditions change, you need to know the long and short-term trends. If the market is heating up, you can ask a little more for your home. If it’s cooling off, you may need to lower your price to attract buyers.

So, how are buyers behaving? Are they making multiple offers and paying over list price? Or are they sitting on the sidelines, looking but not making offers? The answers tell you if you’re in a buyer’s or seller’s market.

A seller’s market is characterized by confident buyers, rising prices, short “days on market”, supply levels of less than six months on hand, and offers close to full price, at full price or above list price offers.

A buyer’s market is characterized by fearful buyers, longer “days on market,” inventory supply levels of six months or more, and low offers. To get buyers to come in from out of the storm, sellers must offer incentives such as seller-paid closing costs or throw in the refrigerator, washer and dryer.

To find out where your market stands, go over the Comparable Market Analysis (CMA) that your C. Dan Joyner, REALTORS agent provides you. Using this knowledge, you can price your home to sell quickly, and for the most money possible.

Did you know there is "CarFax" for your home? A CLUE report on a particular property contains all of the loss claims reports from member insurance companies. "CLUE" is an acronym for Comprehensive Loss Underwriting Exchange and the database is managed by a company called LexisNexis. When you apply for home, car, or other liability insurance, a CLUE report is usually pulled as part of the application process. 

Unfortunately, providing you with a CLUE report is not as easy as it seems. When insurers quote homeowner’s insurance for a buyer, a CLUE report is obtained as part of the quoting process. Using this report, insurers can tell the potential buyer what claims have been filed on the property, the amount that was paid by the insurance company, and when the loss occurred. Because the CLUE report is only available as part of the quoting process, we need to know the buyers names, dates of birth, social security numbers, the construction details of the home, etc., to obtain the report.

I have had brokers mention to me that sometimes a seller fails to disclose homeowner’s claims previously filed against the property. If the seller is not disclosing former claims, there is a chance the repairs weren't made. When this happens, the buyer may find it difficult to purchase insurance coverage. Not long ago, we worked on an account where the CLUE report revealed a hail damage claim from March 2016 with a payout of $8,000. As it turns out, the seller kept the money and did not get a new roof. Frustrating!

When this problem gets passed on to the buyer, the best case scenario is if the insurance underwriter agrees to write the policy, giving the buyer a window of time to repair the damage. The worst case scenario is that the underwriter only agrees to insure the home after all prior damage has been repaired.

To obtain a free copy of your CLUE report, contact:
LexisNexis, Consumer Center
www.lexisnexis.com
Phone:866-312-8076
To obtain a CLUE report on a particular property directly from LexisNexis, the owner must be the one to request it.

Keep those questions coming! We appreciate our partnership and are here to help with any and all of your insurance needs.

Ginger Carlon
Joyner Turner Insurance
864-400-3530
ginger@joynerturner.com

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