Dear Buyer: Did Your Offer Get Presented to the Seller?

In the current climate of multiple offers submitted by anxious buyers, circumstances on some properties may lead a buyer to wonder if the seller was ever made aware of his or her offer.

First of all, unless the seller has waived in writing, all offers are supposed to be presented to the seller--this is the listing agent's fiduciary duty to the client--whether verbally, in writing, or in person by the listing agent or in person by the buyer's agent.  But in today's world, the buyer's agent does not usually personally present to the seller, and the buyer relies on the listing agent's word that their offer was presented.  Through the end of 2018, there is no ethical or legal requirement for a listing agent or the seller to respond in writing or otherwise to a buyer's offer. It is regarded as a courtesy.

But starting January 1, 2019, there is a new requirement. Per a new Code of Ethics requirement by National Association of Realtors, " a listing broker or agent is required to confirm in writing that an offer was submitted to the seller if the cooperating broker who submitted the offer so requests. The listing broker or agent must provide the written affirmative unless the seller has waived  the obligation to have the offer presented."  So, 1) the buyer broker must request confirmation (there are several ways to do this), as long as 2) the seller has not already waived the obligation to have the offer presented.  The seller does have the option of waiving offers (best put in writing with the listing agent) if the seller wishes to avoid offers under a certain price, or with certain conditions he/she does not want to meet, i.e., a longer escrow period.  Sometimes under these circumstances, the buyer may decide to rewrite an offer in order to get the seller's attention.  Otherwise, if the buyer's agent requests it, the listing broker, or listing agent, will be required to submit confirmation in writing that the offer was presented, and this is most often done by checking and signing for a box on the offer form.

If you would like to know more about making an offer to a seller, please contact me!  There are many aspects to the offer forms via the California Association of Realtors, and early familiarity with them will make your transaction easier and smoother.



Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

California Homeowner Associations Are An Owner Option for Many

Homeowner associations continue to be a popular form of ownership for all age groups.  In 2006, there were 43,000 homeowner associations in California, housing between 8.5 million to 10 million people.*  The Aliso Viejo Community Association in Orange County alone had about 15,300 units at that time. Such associations are favored by cities because HOA members help shoulder the newer infrastructure costs through their dues paid to maintain their common areas.

So a 2018 survey conducted by Community Associations Institute demonstrating owner satisfaction in these communities might also be a reflection of what today's housing choices are in many areas, including Orange County where HOAs are prevalent.

But in spite of that, many people do see advantages: affordability, convenience, safety, uniformity, shared responsibility in costs and maintenance, and association recreation features.

Common complaints are rising HOA dues (or having to pay any at all), architectural standards which may seem restrictive, unpopular rules, complaints about the Board of Directors, and lack of rules enforcement, to name a few.

But as the graphic shows, the CAI survey results show:

 When it comes to fees that are assessed monthly but often paid quarterly, prospective buyers or current homeowners should remember that these amounts cover certain basic services such as insurance premiums for the common area services such as roads, pools, and tennis courts, maintenance for these features, certain utilities such as water and trash service for each unit, BBQs and recreation rooms, which they might otherwise have to pay for if they owned a non-HOA home, or might otherwise not have some of those facilities at all.  And such costs continue to rise in California as insurance risks also rise.  However, for many people, multi-family style condominiums are an ideal entree to homeownership in certain areas, much more affordable than buying a single family home in the same neighborhood.
A well-managed association can be a blessing for some, but if not well-managed, or with Directors who do not enforce the CCRs or understand them very well, there can be challenges.  CCRs, voted into existence by the owners after initial setup by developers, are a contract between the owners and the Board of Directors.  They are the underlying foundation of operation in the community, along with the By-Laws and the Rules and Regulations.  Very important to follow them!

If you are interested in a condominium, townhome or house in a homeowner association or PUD, please contact me.  I have experience with this type of property and can help you navigate your way into your next home!

Julia Huntsman, REALTOR since 1994, Broker | www.juliahuntsman.com | 562-896-2609 | CA Lic. #01188996

* https://www.ocregister.com/2006/11/12/educating-hoas/ 

Where are California's Foreign Buyers Coming From?

Foreign buyers in California

Here is a question recently posed to CALMatters, a website dealing in housing data for California, "How much are foreign buyers and investment firms—two of the most common sources of all-cash transactions—impacting the average California family’s ability to buy a home?"

All cash sales have been the nemesis of buyers for over a decade.  As prices rise, many lower priced homes get snapped up by investors wanting to build a rental portfolio, investors who want to flip properties, or buyers who, if not paying all cash, have a 50% down or more down payment.  International buyer numbers have grown, especially on the West Coast, especially in areas such as San Gabriel Valley, Arcadia, San Marino, Newport Beach and Irvine, where buyers from China gained a foothold in the past and have increasingly congregated over time.  For Chinese buyers in particular real estate investment is a good strategy, they view American properties as "cheap" compared to what investments cost them in the city/country of origin.   While China has been eyed as the competition by buyers here, the fact is that "As recently as 2014, Canadians purchased more U.S. homes than Chinese buyers, according to the National Realtors Association.  But right now foreign investors are also favored by the EB-5 visas which grant green cards to large investors.


But the truth is that citizenship or national origin is not specifically a part of any real estate transaction, so there are assumptions made based by tracking the cash transaction statistics, because it is believed such foreign buyers are one of the impacts on prices here.  The British Columbia government levied a 15% sales tax on foreign home buyers to curtail the market impact in areas such as Vancouver, but prices are still out of reach of the average family there. Another rule limiting Chinese buyers from taking more than $50,000 to bring here has had some impact, but there may still be ways for purchases to be accomplished.  There are arguments over the impact of foreign buyers on statewide pricing, as they tend to target certain properties in some areas.  Obviously, there are other things having an impact, such as all the properties bought in the down market by investors which are still off the market and held for rentals, and the fact that fewer housing units are built to keep up with demand. 

So how many properties have been cash transactions in Southern California?   Go to this interactive map to find your area.  Overall, since 2013, percentages range from 13% to over 30%.  Long Beach 90803 zip code is 21%; 90802 is 28%, Newport Coast 33%, Signal Hill 13%,  whereas Malibu is 38% cash sales.

Some information is available here for foreign investors. If you wish to buy in Los Angeles or Orange Counties, please contact me for a comprehensive look at the market, referrals to financing, and details on properties currently on the market.  I am a Realtor with over 22 years of experience, and a Southern California native.