Home Buyers: Closing of Escrow Timelines

Once unconditional loan approval is met, the closing of escrow begins. 

The buyer will receive the closing disclosures, CD, from the lender, which state the final details about the loan including the total costs and details associated with the loan. Now would be the time to resolve any issues if something does not look as you expected. Loan docs cannot be signed until 3 business days after the CD is signed. 

Within 5 days from the close of escrow, you will want to do the final walk through with your agent. At this time, you will want to verify the property is in the same condition it was when you submitted your offer, and you will want to ensure that all the repairs you requested, if any, have been completed. You will then sign a Verification of Property form stating the details of your findings. 

Once loan docs arrive at the escrow office, the escrow officer will notify you as the buyer and make an appointment to come in and sign. Make sure you bring a valid state ID, driver’s license or passport to sign the loan documents. The Notary requires these as a routine step to verify identity. If you are unable to sign during escrow’s business hours, you have the option to meet with their Notary after hours. Once loan docs have been signed, they are sent back to your lender for final review. 

At about 3 days before the close of escrow, the buyer will receive the wiring instructions from escrow for the remainder of their down payment and any other monies required to purchase your new home. The lender must have confirmation that the buyer’s wire is in escrow prior to their funds being wired out. If you are only able to do a check, we recommend coordinating that process with escrow to make sure it clears in time to stick with the specific close of escrow timeframe. Following confirmation of the buyer’s funds and review of the escrow documents, the lender will wire the remaining funds, usually, the day before escrow closes. 

Due to the Good Funds measure passed in California , the money has to sit in escrow for a certain period of time, typically a day, prior to the closing and recording of escrow. Upon the day the closing of escrow occurs, the title company will record the Deed of Trust with the county. Upon receipt of confirmation of the deed being recorded, title will confirm with escrow and escrow will contact both the buyer and seller. At this time, escrow will disburse the money to the appropriate parties and you will now be celebrating as a new property owner! 

Please head over to our contact page if you would like more information about the purchasing process. 

Home Buyers: Opening of Escrow Timelines

Whether you are a first time home buyer, or have not purchased a home in a while, it is important to understand the timeline of events prior to the opening of escrow. Typical escrow periods are between 30 and 60 days. Due to TRID being passed in 2013, escrows are more typically in the 45 to 60 escrow timeframe. However, unless you are purchasing a property all cash, these timelines would not apply. 

Opening of Escrow: 

Once your offer is accepted, you have 3 days from the time escrow opens to deposit the earnest money deposit, which is typically 3% of the purchase price. The escrow officer will immediately send out the “Joint Escrow Instructions” which you will want to read thoroughly and sign and return to the escrow officer in a timely fashion, as time is of the essence. 

From the date of acceptance, your inspection period begins, which can be up to 17 days. This is where you will want to review the necessary disclosures from the seller, order your own home inspection, termite inspection, and others so you are able to know all the ins and outs of the property. 

Once you review all your inspection reports and you find items you want to be repaired, you will want to submit a Request for Repairs. You, as the buyer, will either request the repair or a credit and you can fix the item once you are a home owner. Once the buyer and seller agree on terms, the seller will then ask you to remove your inspection contingency, which signifies your Earnest Money Deposit going “hard”. Once your EMD is hard, you cannot back out of the deal without losing your deposit, unless the property does not appraise or you are unable to receive the loan. 

The appraisal is ordered by the buyer’s lender, which typically happens within the first 17 days of escrow. The appraiser will visit the property and create a report of the subject property under contract and the nearest comparable properties. 

Following the appraisal, assuming the subject property appraises at the purchase price, comes loan approval from the lender. Once unconditional loan approval is received, which is in the 21-25 day mark, the buyer removes their loan contingency. If the escrow period is longer, we recommend making your loan contingency time period longer. 

As the buyer, this is the process of the first 25 days of escrow. There are obviously a multitude of documents and disclosures to sign, but this is a general run down to get an idea of the process. Our next post will go into the closing of escrow process. Please contact us if you have any further questions in regards to buying property.

Home Lovers: California Spanish Revival Homes

If you are familiar with the South Bay, I’m sure you have seen multiple Spanish revival homes in the area. This style of design became popular in the coastal cities in the early 1920’s most notably by the architects Bertram Goodie and Carleton Winslow. The majority of the Spanish revival homes were built between 1915 to 1931 which began in Rancho Sante Fe in San Diego and slowly worked its way up the coast to Santa Barbara. 

In the South Bay, we have seen beautiful Spanish Revival homes, original and remodeled, with the majority to be focused on a wonderful outdoor space and landscaping. Typical elements of the Spanish Revival include curves and arches, white stucco exterior, red-tiled roof, and courtyards and patios, amongst other elements. 

These homes always sell well in the South Bay market with a few in Redondo Beach holding a historical significance. In just the past couple of years, we have seen the style sell on the low end for $1,000,000 up to $3,775,000 just in Redondo Beach. 

If you are also a fan of Spanish Revival homes, take a look at a few of our favorite properties we have seen across California. Head over to our contact page if you would like any information on local properties for sale. 

Sellers: Why Your Agent Should Use Online Advertising

In this day and age, everything is done on the internet, from shoe shopping to grocery shopping and now even, buying homes, sometimes sight unseen. While we do not recommend buying a home online without seeing it, we do however recommend online advertisement for your property. 

Newspaper and word of mouth advertising is no longer the most cutting edge way to ensure that your property is being seen by enough prospective buyers. We believe that the proper online advertising will allow you to sell your home at the price you want, and in a timely manner. 

With online advertising, the most important aspect are the photos of your property. You only get one shot to make an impression, so the photos should put your property in its best, yet realistic, light. Making sure your agent hires a professional photographer, as opposed to using cell phone photos, is extremely important. With that said, knowing these photos will be published across the internet, you will want to remove any personal items or photos you don’t want strangers seeing. 

To give you an idea of the various online platforms your property will be on in order to get the proper exposure, we have listed a few below: 

1. Multiple Listing Service
2. Zillow
3. Trulia
4. realtor.com
5. Social Media platforms such as Facebook and Instagram

We believe that online advertising should also work in conjunction with old school advertising, such as mailers to the local neighborhood, and local newspapers. By using both internet and old school methods, you are expanding your reach out to a larger audience. 

Head over to our contact page if you would like more information about our marketing campaign we provide each of our listings and our professional photographer’s portfolio.

Home Improvers: 3 Big Ideas For A Small Backyard By The Beach

View fullsize

View fullsize

View fullsize

Home Improvers: 3 Big Ideas For A Small Backyard By The Beach

If you live in the South Bay, you know that a yard where you can fit everything you want comes few and far between, and besides, our real backyard is the beach. However, it is always nice to maximize the space we are given in order to have a truly usable outdoor space. 

Here are a few ideas that we have seen throughout the years that we feel not only utilize space well, but also bring value to the home. 

1. Fireplace or Fire Pit

Adding a fireplace or a fire pit in your backyard adds the right ambiance, and allows you to utilize your backyard through the colder months, or nights if you live in the South Bay. Its important to think about where to place it if you want to make it the focal point of the yard. Using a similar design as your home, as well as adding additional landscaping, lighting, and comfortable seating will create a great outdoor environment. 

2. Outdoor Kitchen and Dining Space

Adding this extra outdoor entertainment space can feel as though you are adding square footage to your home if designed correctly. Its important to create a seamless transition from indoor to outdoor and working with nature and greenery in your yard. This adds a secondary entertainment space where people can gather and feel comfortable outside of the home. 

3. Water Features

Although we live in such close proximity to the beach, adding a water feature can bring a different element to your outdoor space. Your backyard may not be big enough to include a full size pool, but a smaller sized pool still can bring an additional design factor and an awesome utility. 

Adding these features, whether it be a fireplace, kitchen, dining space, or a small pool, can make a big difference in terms of increasing the comfortability, utility and eventually the value of your home. Contact us if you have any questions or need recommendations for local landscapers, contractors or handymen to help you with the above small backyard ideas.

*Images provided by the MLS and Pinterest. 

Buyers: What To Know About Different Purchase Options

Since we are in a competitive market, its important to be well versed in your purchase options to ensure you are making the right decision for you and also aren’t overpaying for the property. Typically, the winter months are historically the best months to buy, and where you are least likely to get into a bidding war, however, this is not guaranteed in the South Bay real estate market. 

As a homebuyer, whether first time or not, there are going to be certain aspects about your particular situation you are going to want to take into consideration to make sure you are making the best choice and best offer, so we will explore a few purchase options. 

Contingent On A Sale

In such a competitive market, it is difficult to have an offer accepted that is contingent on the sale of another piece of property. If this is the route you are going, we recommend having the property you need to sell on the market, and fairly along in the escrow process with contingencies removed. This will allow your offer to look as strong as possible to the prospective seller. Another potential option would be to sell your current property and stay in a temporary rental while you are finding another home so you aren’t making a contingent offer. While this option does involve some risk and quite a bit of moving, it definitely makes your offer the strongest. 

All Cash

The South Bay market has seen an increase in all cash buyers in the recent years, considering real estate in the area is a relatively safe investment. If you have the ability to do an all cash offer, this offer is by far the strongest, and potentially, you could not be the highest paying bidder but still end up with the property. Sellers find that buyers with the fewest contingencies and least amount of escrow time to be safer options. 

Conventional Financing

This is your typical route with 20% down, more or less, depending on each individual situation with anywhere between a 30-60 day escrow period. Within this offer, you typically three contingencies, the inspection, appraisal, and loan contingencies. 

FHA

FHA loans work best for first time home buyers that want to purchase but have low credit scores or a low down payment. An FHA loan is a federally insured loan which gives new home buyers flexibility. In some instances, you can purchase with just 3.5% down for up to a $650,000 dollar loan. On top of the monthly mortgage payment, you as the borrower has to pay a mortgage insurance to protect the lender from a loss. 

Regardless the type of financing and purchase option you decide to move forward with, we always recommend for our buyers to write a letter to the seller. Buyers typically don’t get the chance to meet the seller face to face, so this is an opportunity to make a strong impression upon the seller, in hopes that they ultimately choose your offer. Within the letter, we recommend writing about how you love home, and a brief background about yourselves. We present the letter in a package along with the offer, a proof of funds for the down payment, and a pre-approval letter. Please contact us for further questions.

Sellers: How To Prepare Your Home For Sale

With Spring approaching, many homeowners find it to be the right time to sell. However, getting your home ready to put on the market is not instantaneous. Ensuring that your home shows well and looks its best can make a huge difference in price and offers with potential buyers.

Below are a few easy and cost effective tips that will allow you to maximize the potential of your home: 

1. Decluttering 

Its important for a buyer to walk into your home and imagine themselves living there. In order for this to happen, you have to remove any unnecessary items to make it look ‘staged’ yet livable and homey. We recommend removing any family photos, books, cleaning off desks, nightstands, organizing closets and getting rid of any unnecessary furniture, amongst other items. This maximizes the space but also gives people a clear vision of the space. 

2. Painting 

A fresh coat of paint can go great lengths. Make sure each room is a neutral color to attract a wide range of audience, as well as, use light colors in smaller spaces to have the space show bigger. For rooms with crown molding and trim, you can paint both the walls, and the trim the same color, but use a Semi-Gloss for the trim for an added effect. 

3. Floors

Getting the carpets cleaned and hard wood floors buffed is a necessity, especially if you have pets or children. For a small amount of money, this can create such a big difference for a room and make sure the property shows well and clean. 

4. Kitchen & Bathroom Updates

Its important to replace old faucets and hardware not only for aesthetic reasons, but also to make sure you are within the newly enforced water conservation code as of January 1, 2017. Although it is not a condition of sale, it is now apart of the disclosures. New faucets and shower heads can give a bathroom a fresh new look. If the bathtub is showing wear and tear, it is easy to re-glaze the tub. Reglazing can also be applied to the shower tiles in order to update the color from, say a dated pink, to a fresh white. 

If the kitchen cabinets are older, you can look into painting them, or even replacing just the fronts. Remember, if you have a smaller kitchen, it is always better to go with light cabinetry to make the area look bigger. In addition to this, replacing the hardware on cabinets can also give the space an updated feel, without the hassle of a full remodel. 

For any of these updates, we can connect you with local handyman and contractors to make your home look your best whether or not you are thinking about selling. Please head over to our contact page to inquire for further details.

First Time Home Buyers: How To Get Out Of Your Lease

As we move away from the Holiday season, many buyers are starting to become more serious about purchasing a home due to the rental rates continuing to rise and fear of waiting too long with interest rates. But what starts to become a dilemma, is trying to time a home purchase with the end of a lease. Most people don’t want to be stuck paying both a mortgage and a rental payment. With taking this into consideration, it is important to understand the rental ramifications and also your rights as a renter as you make the transition to homeownership. 

We will begin with the ramifications. To begin, you will need to give your landlord a written 30 day notice if the lease is less than one year, or a written 60 day notice if the lease extends beyond twelve months. At the minimum, you will be responsible for the rent for either that 30-60 day time period. Although each lease contract is different, there could also be an early termination fee in addition to the rental payments you are responsible for. 

With the assumption that the landlord is going to follow through with the terms of the lease, you could be responsible for paying out the rest of the lease, until a suitable replacement tenant has been found. There is potential that a landlord could be lenient depending on your history as the tenant, the current market, and if a replacement can be found quickly.

As for your rights as a tenant, you are not required to live in the property, so as long as you are paying rent. Your landlord must also be making an active effort to lease the property out to find a replacement tenant. Once the replacement tenant is found, your landlord is no longer allowed to continue to collect rent from you as soon as the new tenant begins to pay rent. 

Now for our recommendation: we recommend for you to be upfront with your landlord from the get-go. Give a proper notice with your explanation, continue to be current on your rental payments, maintain the property well, and abide by all other terms of the lease.  Also, try to find a qualified tenant on your own by asking family, friends and neighbors to ensure that the property gets re-leased out as quickly as possible. Lastly, always look for help from your real estate agent. They can make sure the proper notice is given, as well as negotiate through this process smoothly for you. 

The lease to home ownership overlap can be helpful in situations where your new home purchase needs work done. Especially with construction usually taking longer than expected, you won’t have to worry about living in a construction zone and can make a seamless move. 

If you find yourself in a similar situation, please contact our office for further advice and recommendations. 

Welcome to Horrell Realtors!

 We will be posting weekly to give an update about the South Bay real estate market, the ins and outs of home ownership, all the fun of living in the South Bay, local development projects, design tips and much, much more. 

To give you a background on us, we are the longest standing real estate firm in Redondo Beach, CA. We were founded in 1964 by Kay Horrell. It is now ran by Jay Horrell, her son, and grandchildren, Jessica and Jason Horrell. Our office is located in the Riviera Village, where we work day in and day out to meet our client's real estate needs. 

Our office specializes in residential properties across the South Bay cities including Redondo Beach, Hermosa Beach, Manhattan Beach, Palos Verdes and Torrance. Our office also handles investment properties, development opportunities, multi-family and commercial properties. 

Our job is to consistently exceed our client's expectations and assist them meet their real estate goals, time and time again. Please head over to our contact page to get in touch with us, if you would like to know how we can help you!  

We look forward to having you as a reader, and have you know more about our business and the real estate market.