The summer sales season is upon us. Why do people like to move in the summer? Many reasons: Kids are out of school and will be able to start back with their new classmates; The longer daylight hours are conducive to after-work house hunting; Sellers like to show their homes when they are light and bright, and muddy feet won’t track on clean carpets. It’s just…easier. And easy is good, right?
The inventory of available homes remains somewhat low in San Benito County. As of July 10, we had 81 homes listed on the multiple listing service (MLS), the computer base used by all Realtors to list the homes they represent. Of these, 10 are over the million dollar price point. There are 11 in the 900Ks, 8 in the 800Ks, 11 in the 700Ks, 11 in the 600Ks, 8 in the 500Ks, 10 in the 400Ks, 3 in the 300Ks, and 3 in the 200Ks. As you can see, the market is skewed toward the higher end. That is because the lower price points are selling quickly, not remaining on the inventory for very long.
There are also 81 homes currently under contract, with buyers and sellers doing all that they need to do during the escrow process including lining up financing, doing inspections, making repairs while the lenders and agents are busy keeping track of all the details and ensuring all the paperwork is done correctly and on time.  A typical escrow lasts six weeks, though cash sales can be completed in days and sticky transactions can take a year or longer.
Whoa, doggies! A year to buy a house? What would take that long?  It is amazing the things that delay a purchase. If the house is a short sale (meaning there is more owed on the home than could possibly be recouped in a sale) the lender could take that long to agree to the sale. If the home is being sold under probate, the court needs time to approve the sale. Sometimes there are extenuating circumstances such as a lease held by a renter who is unwilling to move. There are many reasons, and they all add to the challenge and joy of being a Realtor.
When a house is in contract, we call it “Pending”. Before I became a Realtor, I would see that sign on homes and wonder what the heck it meant.
The other term I didn’t know was TFT. I would see that homes had TFTed. Tufted? Tufted? How does a house tuft? Actually, that is an acronym for Transaction Fell Through. It means the home was under contract, but the buyer backed out of the sale. This could be because of inability to secure a loan, discovery of information which changed their mind, or a change of status such as the loss of a job or the death of one of the buyers.
In addition to the inventory on the MLS, there are the developments of new houses which are back on the landscape after about a decade. First, we had the sewer issues, then we had the bubble burst, so it has been awhile.Â
These new house developments will pay a commission to a Realtor who brings in a buyer, so there is no need for you to walk into one without representation. But make sure you talk to your Realtor BEFORE you go for your first visit. If you walk and they get your name they consider they “own” you, so to speak, and you won’t have a professional working on your behalf in the process. It doesn’t cost you, the buyer, a cent to have your own agent, so why wouldn’t you want that?
Now that the dust of the Saddle Horse Rodeo has settled, the fumes of the last bike of the rally and the blast of the last firework are behind us, this is a good time to talk to a Realtor if you are thinking about buying or selling this year. Even if you won’t be ready in 2015, but might want to in 2016 it is not too early to include him or her in your planning.Â
Enjoy your summer; be safe. It’s a good life.
Nants Foley is the executive broker at Four Corners Real Estate Group in Hollister. If you have information you would like seen presented in a future column, contact her at nantsfoley@gmail.com or call 831-801-5110.
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