Slowing home sales could mean a return to contingencies – Orange County Register

Change is inevitable. Just as we all held our breath (sometimes literally) at the start of the pandemic waiting to see what would happen to our jobs, our children, our savings and our home values.

To our surprise, home sales and values ​​jumped.

And whether you hold your breath for the good times to drag on or pray for the good times to come back, change happens. We now feel a change in the market, as well as a change in the seasons.

The typical Southern California market is back on statistical tracks more like 2021 and prior years, if you throw in 2020 and the Covid-19 curve, according to Steven Thomas and Reports on Housing.

Demand goes down and supply goes up. This is most certainly tied to a 2 bp rise in interest rates, soaring gasoline prices, and the slippery slope between a bull and bear market on Wall Street.

With change in the air, patience and creativity will come into play for both sellers and buyers.

For sellers, that means patience in the form of waiting days, weeks, or even a month or two to find a buyer for your home. Creativity means seriously considering accepting a contingent offer.

Did it make you gasp? Spit your coffee? Yes! Contingent offers will make a comeback. If your home is going to take longer to sell and you don’t want to be homeless when it sells, you may be inclined to make an offer to buy your replacement home based on the likelihood of your home selling. possibly sell.

The difficulty with contingent offers is that you have to come up with a reasonable and mutually agreeable time frame to find a buyer for your home, negotiate the price and terms, and open the escrow.

The CAR form for an emergency sale has “17 days” written into the contract, but conveniently offers “or (blank space)” in case 17 days is too much or too little.

And if your home buyer is making a conditional offer to sell their home, you better get your calendar out. This will involve determining timing and logistics – such as how long each has to put their house into receivership, how long each of the receivership periods will last, how long it will take to transfer money from one receiver to the another, and how several days each of the occupants must bring out their personal belongings. Phew.

Leslie Sargent Eskildsen is an agent at RealtyOne Group West and a board member of the California Association of Realtors. She can be reached at 949-678-3373 or [email protected]