It probably won’t surprise you to hear that there is some gray area in the real estate business.
The 10 pages of the California Association of Realtors’ purchase contract contains several important paragraphs that specify what you can and cannot do. Agents must not only know it inside and out, but also how to use it to their clients advantage:
Jim Klinge
Klinge Realty Group
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CA DRE #01527365, CA DRE #00873197
Trustindex verifies that the original source of the review is Google. We sold a home with Jim and Donna and from beginning to end they were consummate professionals. Their initial walk through the property resulted in a list of items to be repaired or updated. They supplied a list of vendors and job quotes to do the repairs and updates. We originally wanted to sell ‘as is’ and just get it over with. They gave us a selling price for ‘as is’ and options for doing a few updates/repairs to doing it all with the selling price for each option. We agreed to do all they suggested and we sold for the exact price they predicted. For every dollar spent we got back more than $2 back in the selling price. And they got that price in a rising interest rate environment! Donna and Jim are extremely detailed and guide you through ever aspect of the sale. There were no surprises thanks to their guidance. We couldn’t be more pleased with their representation. Thank you Donna and Jim, Jerry and MaryTrustindex verifies that the original source of the review is Google. We have known Jim & Donna Klinge for over a dozen years, having met them in Carlsbad where our children went to the same school. As long time North County residents, it was a no- brainer for us to have the Klinges be our eyes and ears for San Diego real estate in general and North County in particular. As my military career caused our family to move all over the country and overseas to Asia, Europe and the Pacific, we trusted Jim and Donna to help keep our house in Carlsbad rented with reliable and respectful tenants for over 10 years. Naturally, when the time came to sell our beloved Carlsbad home to pursue a rural lifestyle in retirement out of California, we could think of no better team to represent us than Jim and Donna. They immediately went to work to update our house built in 2004 to current-day standards and trends — in 2 short months they transformed it into a literal modern-day masterpiece. We trusted their judgement implicitly and followed 100% of their recommended changes. When our house finally came on the market, there was a blizzard of serious interest, we had multiple offers by the third day and it sold in just 5 days after a frenzied bidding war for 20% above our asking price! The investment we made in upgrades recommended by Jim and Donna yielded a 4-fold return, in the process setting a new high water mark for a house sold in our community. In our view, there are no better real estate professionals in all of San Diego than Jim and Donna Klinge. Buying or selling, you must run and beg Jim and Donna Klinge to represent you! Our family will never forget Jim, Donna, and their whole team at Compass — we are forever grateful to them.Trustindex verifies that the original source of the review is Google. WeI had the pleasure of working with Klinge Realty Group to sell our home in Carmel Valley, and I cannot recommend them highly enough! Jim and Donna demonstrated exceptional professionalism, offering expert guidance on market conditions and pricing strategy, which resulted in a quick and successful sale. Communication was prompt and we were well-informed throughout the entire process. For anyone looking for a dedicated and knowledgeable real estate team, look no further! ---Trustindex verifies that the original source of the review is Google. Donna and Jim Klinge of Klinge Realty Group have our highest possible recommendation. From Donna and Jim’s first visit to our house through closing their advice and counsel was candid and honest in all dealings. They kept us fully informed throughout the process. The house sold less than three days after listing with a two-week closing. My wife and I have sold several houses during our lives. This was by far the best experience. Klinge Reality is a premium service realtor. You can’t make a better choice for someone to sell your home fast and for top dollar.Trustindex verifies that the original source of the review is Google. Donna and Jim provided exceptional support and professionalism throughout the entire process. We couldn't have been happier with their efforts. They made our house shine, and thanks to their expertise, it sold above the listing price in the very first weekend! Truly a fantastic experience from start to finish.Trustindex verifies that the original source of the review is Google. This year has been difficult on our family, mainly due to having to sell our home. Thankfully we knew God had a plan for us and working with the Klinge team was a key part of it. It was an obvious decision to work with them again after such an amazing experience when purchasing the same home we needed to sell. The challenge was, how will we do this in so little time with so much going on? Jim and Donna held our hand every step of the way. Whenever an unexpected issue arose they found and provided a solution. Never once did we feel pressured to make a decision and the Klinges were always reassuring after providing the information that the decision was ours to make. Despite the curve balls, they never panicked and exemplified the “can do” attitude, making us feel optimistic and taken care of. Their expertise and professionalism was superb. But of all the reasons to work with the Klinges, the most impactful and valuable is their compassion and genuine care for their clients. We pray that we can one day purchase our forever home and you better believe that Jim and Donna will be representing us - as long as they will have us of course. Thank you again Klinge team! Your execution, experience, and care are unmatched.Trustindex verifies that the original source of the review is Google. Jim and Donna were fantastic! Jim understanding my needs, recommending potential places, pointing out the pros and cons of each property was invaluable. Then when the offer was accepted Donna’s organized guidance through the inspections, paperwork etc made the whole process seem effortless. So grateful that I had them on my side!Trustindex verifies that the original source of the review is Google. We first found Jim through his blog at bubbleinfo.com, which really showcased his knowledge of SoCal real estate. Since then we've done three transactions with Jim and Donna, and they are an incredible full service agency, with Jim's deep market insight and Donna's deft contract and project management. We trust them implicitly in their analysis and strategy, which is based on years of experience. They're always available and on top of things, and we strongly recommend them to anyone.Trustindex verifies that the original source of the review is Google. The Good The Klinge Realty Group operates like a finely tuned machine, with a very personal touch. We contacted them on a Sunday and they were talking to us about our family and our needs on our living room couch the following day. They carefully listened to us and worked with us to identify the best and quickest path to listing within 2 weeks to take advantage of the low inventory conditions in our South Carlsbad neighborhood. They knew our tract specifically and had many previous sales there over the years - they came prepared with a thorough analysis of comparative sales and recommended a pricing strategy that they felt confident would yield offers the first weekend on the market. The Great Over the next two weeks Donna coordinated a range of vendors who she knew from experience could get the preparation to list work we needed done on time and with high quality. Our light tune-up involved excellent experiences with their stagers, landscapers, contractors, electricians, and plumbers. Throughout this period Donna's daily communication was clear, concise, and responsive. Any time we had questions Donna picked up the phone or texted immediately - but almost always, she answered our questions before we even knew we had them. The Outstanding We had a tricky situation with a shared fence that could have delayed our escrow. Donna used superb mediation skills to negotiate the terms of replacement and was personally on site with the fence contractor to make sure everything went smoothly. The fence looks great and escrow closed on time. The Truly Exceptional Our house came on the market on a Wednesday and between then and Monday morning Jim was personally at all three open houses. He was in constant communication explaining potential buyer reaction and strength. As he predicted offers began to come in on Saturday and each one was incrementally higher than the last. At the end we had 5 offers, 4 of which were over list, and the final accepted offer was $100,000 over list. In addition to being over list it included rent back terms that met our needs. The Recommendation For all of these reasons we would strongly recommend The Klinge Team to anyone wanting to sell in North County Coastal San Diego. I had been reading Jim's bubbleinfo.com blog for 15 years and knew when the time came to sell that he would be our first call. Jim Klinge is not your standard realtor. He is keenly aware of market conditions and sales strategies. And, works his tail off - though not as hard as Donna . At this point he's gone from realtor to friend and I plan to have him over to grill and chill at our new place to talk real estate, but also just about life and raising kids in San Diego. He's more interested in relationships than his sales numbers - and that's why his sales numbers are so high. We have already recommended the Klinge's to some close friends and another successful sale is on deck right around the corner...Trustindex verifies that the original source of the review is Google. We recently had the pleasure of working with Jim and Donna from Klinge Realty Group to sell our house, and we couldn't be more satisfied with the experience. From the initial meeting, they listened attentively to our needs and provided invaluable guidance on specific improvements to get our home market ready. Their responsiveness throughout the entire process was truly impressive. Anytime we had questions or concerns, they were quick to address them, ensuring we felt comfortable and informed every step of the way. What stood out the most was their team and extensive network of tradespeople, which made addressing any necessary repairs or updates seamless and stress-free. Thanks to their expertise and dedication, our house sold quickly and at a great price. We highly recommend Jim and Donna to anyone looking to buy or sell a home. They are a fantastic team who truly care about their clients and deliver exceptional results.Load more
Very good advice! Grift the Grifters.
Now can’t help but wonder what advice your better half veto’d.
She probably didn’t want the magician to give away all of his tricks and secrets…
Affirmative.
The C.A.R. purchase contract does address this scenario in its paragraph 3K, so I wouldn’t call this much of a gray area:
BUYER STATED FINANCING: Seller has relied on Buyer’s representation of the type of financing specified (including but not limited to, as applicable, amount of down payment, contingent or non contingent loan, or all cash). If Buyer seeks alternate financing, (i) Seller has no obligation to cooperate with Buyer’s efforts to obtain such financing, and (ii) Buyer shall also pursue the financing method specified in this Agreement.
Buyer’s failure to secure alternate financing does not excuse Buyer from the obligation to purchase the Property and close escrow as specified in this Agreement.
Jim,
Is a listing agent obligated to present all offers to the sellers? For example, can the listing agent block a legitimate cash offer just because it is low ball?
Thanks,
Bill
Interesting advice Jim. But in general the agents that I have come across have very limited thinking and if I say 40% they get bent out of shape I later reneg on my initial assumptions.
From your CAR note, (ii) – does that mean that the buyer is under obligation to buy PERIOD? And if other financing doesn’t pan out, they STILL need to buy or simply they lose the house (but no money is lost right?).
It would be interesting to see if a high downpayment with a lower offer would work? Why you ask? Because I don’t believe in paying “asking” price. If someone else does, they can knock themselves out and pay their large mortgage every month for 360 months.
Regardless, I find the entire process of “bidding” for overpriced properties truly despicable and offensive. Is this what people have become?
great advice jim!
I too hate bidding wars.But if you want something bad enough sometimes you have to think of any advantage you might be able to use in the contract.
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From your CAR note, (ii) – does that mean that the buyer is under obligation to buy PERIOD? And if other financing doesn’t pan out, they STILL need to buy or simply they lose the house (but no money is lost right?).
Noz,
As long as you know that financing didn’t pan out during your contingency period, no money would be lost, you’d simply cancel the contract.
If you release all contingencies in writing after your typical 17-day contingency period, and then can’t get financed, you’d lose your deposit.
Yes, to the question in your last paragraph – it might be a California thing though.
Jim,
Thanks for the reply. I think I understand but clarify one thing for me. Let’s say I have 40% down and put an offer on a home with stating that I plan to put down 40%. That is to say I want to put a lower offer and not get into bidding wars so I entice the seller to take my offer with 40% down….and I have the means to back it up.
Come time to close, I change my mind and say I don’t want to put 40% down but rather 20% (ie. the seller already chose my offer thinking I’m going to put down 40%).
Then what happens? Am I still liable to show 40% down? If you can clarify the limitations with this approach, I’d appreciate it. I’m thinking of using your suggestion but not sure what I’d be liable for.
Hi Jim – Interesting approach. I had always thought that a seller would have the right (if they wanted) to cancel the contract which seems to be what #1 of paragraph 3K is saying. Not that they would but they do have the right to cancel. Love the work that you do – keep up the good job and thanks for the shirt.
Nice tip. The Seller doesn’t care so long as you close. The bigger deposit tells the Seller that you’re also also more than likely going to be approved for a loan and can cover nearly any surprise appraisal number difference.
Just be prepared to put the 40% down.
I’d also add that you be willing to throw in 2% of purchase price for any squabbles.
Noz,
You can obtain any financing you want.
The only thing that matters is that you cancel during your 17-day contingency period if you cannot get the financing you want.
If you release all contingencies in writing, and then can’t get financed, then you lose your deposit.
The only time you might get crossed up is if the listing agent has insisted that you pre-qual with their lender, who determines that you’re a “slam dunk” with a 40% down payment.
Then you cancel during the 17-day period, and the listing agent wants to see that you got denied for a 40% down deal. Because paragraph 3K says that you must pursue both financing options, if you can’t show that you were denied then they might make your life difficult.
But there is a way out – have your agent show you.
Stormin,
Sellers can never cancel a deal. Once they sign, they are in, and the buyer has 100% control of the transaction.
The sellers can issue a ‘notice to perform’ if the buyers miss a deadline, but they get an opportunity to rectify before sellers can cancel.