What is a Contingency Period?

Typically buyers make offers that are contingent on any number of things. Most commonly this includes getting an appropriate loan (which also involves a satisfactory appraisal by a licensed appraiser hired by the bank), having a home inspection. among others. Here in California there are an additional number of contingencies that are included such as reviewing the Home Owners Association documents. The contingency period is a default of 17 days, but which can be any reasonable time period that is agreed upon by both buyer and seller, and is the period during which the buyer has to remove all the contingencies in order for the deal to move ahead. The buyer must complete the home inspection, obtain a loan, and review and approve all the other disclosures and documents required by law or which are otherwise part of the transaction (e.g., docs requested by the Escrow company).

When you are relocating this may all be done from a distance, but it does mean paying careful attention to agreeing on a reasonable contingency period to allow for the flow of documents back and forth (with overnight mail and email this can happen fairly quickly). And getting a loan when out of state can be more time consuming, so allow plenty of time. Your REALTOR can help a great deal with insuring that the documents get to you in a timely manner, but it is YOUR responsibility to return them promptly. Failure to remove the contingencies in the agreed-upon time COULD put your transaction at risk, as well as your deposit.

(Photo is from my weekend trip to San Francisco - looking at Alcatraz from park below Ghiradelli Square)

Many people relocate when they have reached a time in their lives that they wish to downsize and simplify their lifestyle. The majority of the people in this category are Baby Boomers. They may want to near children and grandchildren, or live in a warmer climate such as San Diego where they can spend their time golfing year-round. One of the options that some people in this generation choose is a 55+ community - an association of homes of perhaps varying styles and sizes, where the requirement is that one or possibly both members of the household are at least 55 years of age.

These communities offer a particular lifestyle that can appeal to those who no longer wish to have a large home, and prefer to not have to deal with the maintenance issues. The 55-year age requirement can be met in a number of ways depending on the stipulations in the association's by-laws. Often only one member is required to be 55 or older, but sometimes both. There are some large associations where only part of the subdivision is reserved for this age group, whereas others are completely self-contained, gated communities. It is common to find a range of amenities that will appeal to the residents - some have their own golf course (e.g., Ocean Hills in Oceanside), and a clubhouse that offers a variety of activities is fairly common (bridge, dances, community events and dinners). Home styles vary - some communities offer manufactured housing while others are more tract-like, either attached or detached. Commonly they are single story to better accommodate the residents as they age, but some offer both single and two-story arrangements. Because of the number of communities in our area, you will likely find what you are seeking, both in terms of amenities as well as price. San Diego offers a wonderful year-round lifestyle, but is not the least expensive areas for retirement.

In order to preserve the desired lifestyle, these communities may have restrictions on visitors - the number who may visit at a time and how long they may stay. The golf courses are usually private (but guests will usually be allowed to use the course), and the fees may be included as part of the monthly maintenance fees the residents pay to cover exterior and grounds maintenance. The overall convenience of no maintenance, a range of amenties and a group of similarly aged residents can allow for the perfect lifestyle. But it is not right for everyone, so do your due diligence before you make a final decision.

In a relocation, the role YOU have is a critical one, perhaps more so than when you are moving a short distance to a new home. Unless you are very familiar with the area you are moving to, there is much that you need to learn so that you can make an informed decision about where to live. The more time you can spend researching the area and obtaining information, the more comfortable you will feel about settling in your new location; this will help alleviate the stress also, since much of the tension will be caused by unfamiliarity and unsettled issues.

1. Use your agent's website and access to the MLS to understand the housing as much as possible - type of homes, neighborhoods, size of homes, lot sizes, age, proximity to school and shopping, etc. Keep careful notes on areas that interest you so you can research these more. There is a wealth of information on the Internet.

2. Review the Chamber of Commerce websites for the towns that interest you. These typically have lots of information about the community - services, housing, shopping, parks, schools, events, etc. You will gain a good understanding and feel for the community. The URLs for these sites will vary, so a Google search will likely lead you to the  right URL. If you are moving to my area, you can search Carlsbad, Oceanside, Solana Beach, Del Mar, Vista, San Marcos, Encinitas, Cardiff. There are other nearby communities as well.

3. If schools are important, there are a number of resources on-line. You can link to my website where there is a national search site for school districts around the country. If there are particular school districts that interest you, research these on the Internet by doing a google search for that particular school district and review their site. I also suggest contacting school districts directly and perhaps getting more updated info, as well as the names of some parents to talk with. You should verify what school(s) are in you area so you know in advance, but check again once you have decided on some homes that are of interest - you might find that they are tied to different schools, and if that makes a difference to you knowing this will be important before you make an offer. While your agent may know, it is best for YOU to check this out. You will find that some information on the school district websites may be outdated, and boundaries for schools can change.

4. Crime may also be of concern, and if so you should check on this yourself. A Realtor cannot guide you to or away from an area based on crime statistics. One source is the police department for the town of interest (sometime the chamber website will have this information). You can also research this on the Internet. California also has a database of sexual offenders you can search.

I'll talk some more about due diligence in a later post. Any questions, please feel free to ask me directly if you wish.