Blown Over Tree Cancel Your Home Sale? Understanding Risk of Loss

We are currently experiencing a real estate market rebound and though it may seem unrelated a crazy storm weather pattern. With the summer storm season is upon us and sold signs appearing on homes throughout the Minneapolis/St Paul metro, there are bound to be homes that will sustain storm damage before closing.  

So what if the unthinkable happens and a few weeks prior to the closing, straight-line winds blow through town and damage your property. Maybe picturesque hundred year old oak trees that gave the home character have been uprooted. Or worse yet, what if one of the huge oaks fell onto your house severely damaging the roof. What happens now?

What you might not realize is that this situation has been addressed in the purchase agreement you have signed. Risk of Loss is one of those “boiler plate” clauses on page four of the purchase agreement used for almost every real estate transaction in the State of Minnesota. Being preprinted, some agents and/or their clients will gloss over this clause when dealing with closing dates and net prices but it is a very important concept to understand, as is every other line in the document you sign to buy or sell a home.

This paragraph clearly states that the risk of loss due to any reason whether an act of God or the acts of vandals will be the responsibility of the seller from the time the purchase agreement is signed until the date of closing. That means if there is a fire or accident the seller will be required to bring the home into the condition that it was in at the time the contract was written and signed.

So if that temperamental decade old washing machine goes on the fritz, the seller is required to replace it. If a neighbor backs over the mailbox at the end of your driveway, it must be repaired or replaced with a new one. Final walk-throughs of the property are essential to ascertain the condition of the home is acceptable to the buyer prior to signing the closing documents. 

But what happens if it is irreplaceable picturesque trees that have fallen on the roof?
 

Even if there is substantial time prior to a closing, for the seller to call their insurance company and have the home repaired, that may not be enough. But, Is it the same house? And more importantly does the buyer still have to buy the home? In a word, no.

The clause goes on to say that in the case where there is substantial damage to the home or property, it is the buyer’s option to cancel or continue with the purchase agreement. The situation outlined above is common situation where the landscaping is changed due to storm damage. Often this cannot be replaced. The damage to the home could also result in an insurance claim that would now be reflected in a CLUE insurance report. This could affect the cost to insure the home. Buyers can opt to cancel the contract in this situation with all earnest money refunded.

Risk of loss comes into play from time to time in residential real estate transactions. In most cases the repairs are made quickly to both the buyer’s and seller’s satisfaction and the contract will close on time. But when the property sustains significant damage as determined in the buyers' eyes, they have the option of continuing to closing or walking away from the deal. Boilerplate or not, risk of loss is an important clause to understand when buying or selling a home.

Copyright 2013 www.terieckholm.com

Pack It Up! Test your Moving Skills

Yesterday, I had the opportunity to drop off one of my Christmas packages in person. I have been taking the easy way out and letting the postal service do the bulk of the work but I do like to add a personal delivery where it makes sense.

This client just sold his east Twin Cities metro home and after a month of packing and unpacking was down to the very last box. I said, “You know if you don’t get that one done, it will remain unpacked until you move again.” (I’m speaking from experience as there is one unpacked box from our move 16 years ago on a shelf in our basement.)

He responded, “I’m not moving again for a very long time!”

Funny…when we listed his house, he and his new fiancée had planned to sell her home too and start their new life in a brand new neighborhood. It is funny how quickly thinks can change...I just smiled.

Packing is a chore but it is a very big part of moving. This morning I ran across a fun interactive game that might be of interest to anyone planning a move soon. It gives the player a chance to test his/her packing skills by loading a simulated moving van, which is actually just a cube, with boxes as they come off the conveyor belt. So far, the men are getting higher scores than the ladies, even though many more women have tried playing the YOU-PACK-A-CUBE Game. It's on Facebook so you have to have a Facebook Account to play. I wasn't very good at the game but it was fun to try...and a bit addictive. My excuse...I do better when packing boxes, cars and vans in person.

So take a break from wrapping presents and baking cookies to test your packing skills…And when you are ready to make that move, give me a call!

 

Copyright 2012 www.terieckholm.com

Almost Wordless Wednesday--Fast Hands!

Amazingly fast and expert on the job...That's how I would describe this chef at the Japanese restaurant Tappan Edo located in Epcot's World Showcase in Disneyworld. I tried to capture the moment but he was so quick, it was impossible to see his hands as they prepared our dinner. I am certain he spent many hours perfecting his craft before displaying his culinary and entertaining skills. Now as an north and east Twin Cities metro REALTOR®, I continually work hard to perfect my skills with the hopes of being amazingly fast at finding a home for a buyer (or finding a buyer for a home) but it is doubtful that I will ever move quite as fast as this!

Copyright 2010 Teri Eckholm 

Love at First Sight--It Hits Home Buyers Too!

Do you believe in love at first sight? I do!

Decades ago as a handsome young blue-eyed man walked through the door of a neighborhood restaurant, his eyes connected with the sparkling eyes of a young girl. In that instant, their lives changed. It was years before they married and there were many ups and downs during that time. But they are still together and in love today. I should know, as the star-struck green-eyed girl was me.

Funny thing is that when I see that tell-tale star struck look these days, it is when my buyers fall in love with a house. After showing house after house to my clients, whether they are first time buyers or moving up or downsizing, I can see it in their eyes when we have found the one!

• It is not always the best house.


• It is not always the most expensive.


• The property is not always perfectly staged.

But something about the home strikes the heartstrings of the buyers…I can see it in their eyes.

I am a firm believer in houses selling themselves.

For most home buyers, a housing purchase is unlike any other investment; it is an emotional decision. My job as a buyer's representative is to provide stable, unbiased support and assistance throughout the home buying process. So while my buyers are starry-eyed looking at the warm paint colors, brilliant hardwoods and room sizes, I check out the nooks, crannies and disclosures to discover things that might be overlooked. While not an inspector, I will point out potential issues to question the sellers about (and home inspector should the buyers decide to write an offer). Sometimes flaws are hard to see with stars in our eyes.
Falling in love at first sight is a wonderful experience whether with another person or a home. It is important to take the time to get to know that object of your affection before making a commitment. As a professional REALTOR®, I can guide love struck buyers through the home buying process so that they get a good deal on their dream house. My job as a real estate agent when representing buyers is to look out for my clients’ best interests so they can remain in love with their dream home as long as the live there.
♥ Have a Wonderful Valentine's Day!♥

Copyright 2010 Teri Eckholm

Anoka County Home Buyer? Going at it Alone is A Heavy Load Indeed!

Are you a homebuyer going it alone? A renegade who doesn’t need the support and expertise of a real estate agent…at least not until you have found “THE” house. Is this the best plan to get the best deal on an Anoka County home in current real estate climate?
I read a great blog today that I wanted to share with home buyers (and sellers) in the north and east Twin Cities metro area. Will Nesbitt is a real estate agent in Fairfax, VA. As an arrogant east coast youth with Minnesota’s own Fran Tarkenton as an idol, he challenged his entire neighborhood to a game of football and was CRUSHED! (Read his full posts…The day my neighborhood crushed me. ) Will learned that day the value of having a good team behind you.

Having a good real estate team behind you is a valuable lesson lesson for home buyers too. So...Who is on YOUR team?

• Do you have an expert REALTOR® to assist you through the home buying process?


• A good loan officer?


• An expert housing inspector?


• A title and closing expert?


• Septic and well inspector?


• Are you a skilled negotiator?


• Do you have neighborhood expertise and know the value of homes in different developments?

How many homes did you buy or sell last year? A good REALTOR® will have assisted in the purchase and/or sale of several. This is expertise that a home buyer going it alone will never achieve. As a REALTOR® I work everyday with buyers and sellers on the purchase and sale of homes throughout Ham Lake, Lino Lakes, Blaine and other communities in the Forest Lake school district. It is my job to be a real estate neighborhood expert! And I have a number of great contacts to become a part of YOUR team so you don’t have to go it alone.

Going it alone can seem like a no-pressure way to buy a home, but is flying solo in a home purchase cost effective? Maybe not…Did you know, it doesn’t cost most homebuyers a single penny to have a real estate expert in their corner? But it can cost thousands to work without one. Team up with a REALTOR® who is a neighborhood expert and don’t get crushed by the weight of going it alone.

Copyright 2010 Teri Eckholm