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  Eric Bengel Real Estate Agent for Howard Hanna Home Sales
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What You Need to Know About Contingencies

12/27/2017

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What are contingencies?
When buying or selling a home, one word that you’re guaranteed to hear over and over is “contingency”. Unfortunately, “contingency” also happens to be one of those words that are difficult to define without using the actual word, itself. Here’s the gist of it:

Think of a contingency as a sort of safety net that a buyer puts in place in order to ensure that they purchase a property only after certain conditions have been met. Still with me? Rather than providing any more of a lofty or confusing definition, why don’t I give you a few examples… Most purchase offers contain three traditional contingencies.
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  1. Almost all buyers want to have their attorney review their purchase contract.
  2. The majority of buyers want to have inspections conducted on the property.
  3. And, finally, most buyers need to secure a mortgage.
Taking these contingencies in order, here’s a little more information:

ATTORNEY REVIEW: Both buyers and sellers want to have their attorney review what is often times a dense and legalistic four-page document. The reason for this is that a real estate attorney can ensure that none of the conditions written into the purchase contract by a potentially wily and unscrupulous agent are detrimental to their client’s financial well-being. Attorneys will traditionally spend ten or fifteen minutes reviewing a purchase offer with their client before issuing their approval and, by extension, removing the attorney approval as a contingency of sale.*
*The end goal for any contingency is removal, once all conditions have been met.

INSPECTIONS: I think that we can all agree that the average person does not want to purchase a property where the furnace is non-operable or the roof is leaking water into the living room or the foundation is about to collapse in on itself. The means by which buyers are able to avoid this disastrous predicament is by ensuring that their purchase offer is contingent upon professional inspections. Traditionally, within seven days of acceptance of an offer, buyers will have an engineer and often times a chimney or furnace inspector walk through the property on their behalf. Shortly after, based on the inspection report, the buyer will then ask the seller to make certain repairs that they deem necessary in order for them to feel comfortable moving forward. If, after some negotiating, buyer and seller can agree to a list of repairs, this inspection contingency will then be removed as a contingency of sale. Once our office receives a signed Inspection Contingency Removal, we typically consider the deal to be solid and the property goes pending in the Multiple Listing Service (MLS).

MORTGAGE: Without writing a mortgage contingency into a purchase contract, a buyer could potentially be sued by a seller for non-performance should they find themselves unable to secure financing from a bank or lending institution. As a result of having this mortgage contingency in place, the buyer is obligated to move forward and transfer title into their name only if a bank or lending institution finds them credit worthy and approves their financing. Once a buyer has been approved for a mortgage, the bank will distribute their approval letter and, in doing so, they have assisted the buyer in removing the mortgage as a contingency of sale. This is very often the last contingency to be removed.
Occasionally, a fourth contingency may be written into a purchase offer, having to do with the sale and transfer of title of the buyer’s existing residence. This, ironically, is what most real estate agents refer to as a contingent offer. Because the aforementioned contingencies are so common, they don’t typically stick out as an impediment to the sale. However, because a contingent offer relies upon the sale of the buyer’s existing residence, this contingency is not quite as common or appealing to a seller. That being said, there are certainly occasions in which a seller, unable to sell their property through more traditional means, is willing to work with a buyer who needs to first sell their existing residence in order to finance the purchase of their next.

Of course, there are a host of additional contingencies that can be written into any purchase offer. However, these four conditions constitute what is common to perhaps 98% of all purchase offers. While the wording may seem a bit tricky, I hope that this breakdown makes things a bit more clear!

Our Guest Blogger, Mark Siwiec, is an agent with over 27 years of experience. His team of eleven are responsible for over $60M in annual residential real estate sales.



Eric Bengel (Real Estate Salesperson)
Howard Hanna Real Estate
Direct Phone:  (412) 889-6661
Office:  (412)-963-6300

email:  ericbengel@howardhanna.com
Website:  EricBengel.howardhanna.com
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Protection Against Wire Fraud During a Closing

12/21/2017

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Wire fraud is financial fraud that uses electronic communications to obtain money. Sometimes the fraud involves only a few thousand dollars, but it can be hundreds of thousands of dollars.

Fraud occurs when a fraudster gets money based on a false presentation, promise or lie. For example, when closing on your home, you may receive wire instructions that appear to be from the settlement agents or attorney. In reality, the instructions are sent from a fraudster doing their best to scam you out of your closing cash.

It’s important to take precautions to protect yourself from these fraudsters. According to the FBI, attempts at wire transfer fraud are increasing year over year. In fact, the number of business-email compromise cases with wire transfer requests through fraudulent emails doubled from May 2016 to December 2016.

We talked with our experts to compile this short list of ways to protect yourself and loved ones from wire fraud:
  • Don’t share online banking logon credentials with anyone.
  • Don’t share your account number with anyone who does not need it.
  • Never access a bank account on a public computer.
  • Monitor all of your accounts regularly for any unauthorized transactions. If you do see one, report it to your bank immediately.
  • Be vigilant and suspicious of emails from free, public email account domains, as they can be a source of risk.
  • Watch out for phishing emails that include embedded links, even when they appear to come from a trusted source.
  • Install a computer firewall to prevent unauthorized access.
  • Be skeptical of any changes in wiring instructions.
  • Confirm on the phone any wire or other disbursement instructions that are received via email. Make sure that the number you call is a known or independently confirmed number, not the telephone at the bottom of the email.

Remember, you can’t be too careful! It’s okay to check, double check and even triple check wire transfer information. You may even consider going to the bank in person to ensure that the wire transfer happened, rather than emailing.



Eric Bengel (Real Estate Salesperson)
Howard Hanna Real Estate
Direct Phone:  (412) 889-6661
Office:  (412)-963-6300

email:  ericbengel@howardhanna.com
Website:  EricBengel.howardhanna.com
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Holiday Travel Tips

12/14/2017

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Prepare your car for winter
Before leaving on your trip, give your car a thorough check-up. Do wipers need to be replaced? Are your fluid levels where they should be? Your tires need to be in good shape for driving on wet or snowy roads and be sure your radiator and cooling systems are up to snuff. And – we know you’ve heard this before, but bear with us – your car should have an emergency kit. Pack it with jumper cables, blankets, a first-aid kit, flares, food and water, a flashlight and other safety gear. A shovel and cat litter or sand (to provide traction should you get stuck in snow or ice) are good ideas as well.

Before you leave
Know exactly where you’re going, with printed maps, and check weather conditions along your planned route. Let someone know your itinerary, so if you don’t arrive on time, officials know where to look for you.

When you’re on the road
Are roads snowy or icy? Take it slow. Take it slow. Take it slow. Sorry for repeating ourselves, but it’s absolutely vital to, yes, take it slow. Remember, having four-wheel or all-wheel drive does not mean your car will stop or steer better on ice.

If your vehicle becomes disabled
If your vehicle is disabled, be sure to stay with it. Run your engine and heater for short intervals, and open one of your windows slightly to prevent carbon monoxide build-up. Light two flares (remember that vehicle emergency kit? Now’s the time to use it) and place one a safe distance from both the front and rear of your vehicle. Note your location with mileposts, exit numbers or cross-streets and call the authorities or a tow truck.

We hope you enjoy your holidays with friends and family, and we look forward to serving you in the New Year!
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What Is a Buyer's Agent? A Trusted Guide Who'll Help You Find a Home

12/2/2017

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By Liz Alterman | Sep 13, 2016 (re-blogged from Realtor.com)

Ready to house hunt?  It's a jungle out there:  Prepare for a flurry of paperwork, stampedes of buyers competing for the same digs, and other challenges before you get your hands on those house keys. We won't lie: The process can be complex and stressful—which is why having a pro by your side can make all the difference.

You might have heard of buyer's agents, seller's agents, listing agents, and so on. You're a buyer, so what is a buyer's agent? True to their name, buyer's agents assist home buyers every step of the way; they can also save you tons of time and money on the road to homeownership.

Read on to learn how a buyer's agent can help, and how to find the right one for you.

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Benefits of using buyer's agents
"A buyer’s agent will guide you through the home-buying transaction and be at your disposal for any questions or concerns," says Shane Wilcox, a Realtor® with Partners Trust. Here are some of the things a buyer's agent can do:
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• Find the right property. After determining what clients are looking for and what they can afford, the agent will schedule appointments to tour homes that fit the bill. The agent can also explain the ins and outs of various properties and neighborhoods to help buyers decide which home is right for them by explaining the pros and cons of various options.

•. Negotiate the offer. The buyer's agent will advise clients on an appropriate price to offer and present it to the seller's agent. "Then they will negotiate on your behalf and write up the contracts for you," says Matt Laricy, a Realtor with Americorp Real Estate in Chicago. This is where the agent's experience in negotiating deals can save you money and help you avoid pitfalls like a fixer-upper that's more trouble than it's worth.

• Recommend other professionals. A buyer's agent should also be able to refer you to reliable mortgage brokers, real estate attorneys, home inspectors, movers, and more. This can also help expedite each step of the process and move you to a successful sale all the faster.

•. Help overcome setbacks. If the home inspector's report or appraisal brings new issues to light, a buyer's agent can advise you on how to proceed, and then act as a buffer between you and the sellers or their agent. If negotiations become heated or hostile, it's extremely helpful to have an experienced professional keeping calm and offering productive solutions.

Buyer's vs. listing agent: What's the difference?

Buyer's agents are legally bound to help buyers, whereas listing agents—the agent representing the home listing—have a fiduciary duty to the home seller. "That's why it's in your best interest as a buyer to get an agent who is there to represent you," explains Alex Cortez, a Realtor with Wailea Village Properties LLC in Kihei, HI. "Think about it this way: If you were getting sued, would you hire the same attorney as the person suing you? Of course not. You need someone who will diligently fight for your interests and rights.”

Let's say, for instance, you walked up to the listing agent at an open house and gushed about how you love the home and want to buy it, but you will need to move soon because you're expecting your second child and need to decorate the nursery pronto, or the lease on your rental is up in a couple of months. A seller's agent could then use this information against you by informing the seller that your clock is ticking, so they shouldn't budge too much on their asking price—or at all.

Yet make this same confession to the buyer's agent you're working with, and it's all fine—this professional would know to keep this info private from sellers (and their agents) so it can't be used against you.

How to find a buyer's agent

A good buyer's agent can ease your way to homeownership—and a bad one can result in a bumpy ride. As such, don't just take the first buyer's agent you meet (which is what two-thirds of home buyers do), or blindly accept the recommendation from a friend (over half do this). Instead, it's best to interview at least three agents and ask them a few questions, including the following:

•. What neighborhoods do you specialize in? Real estate requires local expertise, so you should find an agent who's extremely familiar with the areas you're interested in.

•  What's your schedule and availability? Part-time agents who are committed can do a fine job, but if the house of your dreams pops up or you encounter last-minute closing snafus, you want an agent who will be readily reachable.

• How long have you been a real estate agent? You ideally want someone with a couple of years of experience, and a proven track record of selling homes.

To find real estate agents in your area, head to realtor.com/realestateagents, where you can also read online reviews provided by past clients and learn more.

The agent/buyer contract

Once you agree to work with an agent, you will have to sign a contract called an Exclusive Buyer Agency Agreement outlining the agent's services and compensation (more on that next). This contract also means that this agent will be your sole representative and that you won't work with other buyer's agents.

How much do buyer's agents cost?

Home buyers don't need to worry about the expense of hiring a buyer's agent. Why? Because the seller pays the commission for both the seller's agent and the buyer's agent.
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