No Contingency Purchase Offer

Most Silicon Valley home buyers are well aware that a no contingency purchase offer is more appealing to a home seller than a contingent purchase offer. A prospective home buyer should still think carefully about the risks they face when making a no contingency purchase offer.

Probably the most significant risk is not being able to get a mortgage. This has become a greater risk because recent disastrous wildfires have led many home insurance companies to withdraw from the California home insurance market. If you don’t have fire insurance, you probably won’t be able to get a home purchase mortgage.

In early September 2023, Senator Bill Dodd texted “Deal is dead” referring to negotiations between legislators, the state insurance commissioner, and insurers. Agreement to changes that would have allowed insurers to increase rates if they guaranteed they would cover certain percentages of properties in high wildfire risk areas were close to being completed. However, a secret recording of a lobbyist was revealed containing a boast about “trying to jam a bill in the last three weeks” of the state’s legislative session. Consumer groups were not present during negotiations. They immediately raised alarms. The negotiations failed to be completed by the September 14 legislative deadline. Legislators have stated their belief that an agreement can be reached in the next legislative session.

The insurers have complained that their applications for rate adjustments have taken “an inordinate amount of time” when submitted to Insurance Commissioner Ricardo Lara’s office.

On September 21, Governor Gavin Newsom signed an executive order urging Insurance Commissioner Lara to take swift action.

No Contingency Purchase Offer

Most Silicon Valley home buyers are well aware that a no contingency purchase offer is more appealing to a home seller than a contingent purchase offer. A prospective home buyer should still think carefully about the risks they face when making a no contingency...

GPM – Graduated Payment Mortgage

Many home buyers have heard about adjustable-rate mortgages (ARMs). They typically have the advantage of lower mortgage payments than fixed-rate mortgages. This enables the home buyer to get a larger mortgage and buy a more expensive home. An ARM comes with the risk...

Why Make A Preemptive Offer To Buy?

Unfortunately many first time home buyers believe that if a house is offered for sale with a specified offer date, they have to make their offer on that date, or perhaps later if it isn't sold. There are no laws that prevent home sellers from accepting a purchase...

Corona Virus – Larger Lots?

There have been a few reports (without data) that the corona virus pandemic is leading home buyers to prefer larger homes with larger lots. In Silicon Valley the city of Los Altos is known for having lots larger than most other Silicon Valley cities. Comparing house...

Multiple Counter Offer

In Silicon Valley, multiple offers to purchase a home are often received within a short time period. A seller cannot respond to multiple offers by sending a simple counteroffer to each potential buyer. The seller needs to make a "multiple counter offer". The seller...

Juliana Lee Real Estate Team

Many real estate agents say they are part of a team or part of a group. Rarely would one person try to do everything required to regularly sell real estate. The recent Juliana Lee Real Estate Team Video provides a glimpse into why these real estate agents are a team.

Hillsborough Real Estate Trends

Hillsborough house price per sq.ft.

The plot of both average and median quarterly Hillsborough house prices will generally alert you to unusually high or low prices by the separation between the average and median prices changing.

Hillsborough house sales price vs. list price

Changes in the Hillsborough real estate market typically create significant changes in the sales price to list price. The list price is set by looking at recent sales prices. The comparison shows how well sales prices follow expectations.