Lisa and Jim's Northern Nevada Real Estate Blog: Northern Nevada Real Estate Time and Real Estate

Northern Nevada Real Estate Time and Real Estate

 

 
Northern Nevada Real Estate
Time and Real Estate
Lisa Wetzel and Jim Valentine
RE/MAX Realty Affiliates
 

Time And Real Estate

 

"Time is of the essence" is a clause in just about every real estate contract. Time is truly an essential component of real estate transactions, and often in ways not readily apparent to the participants. A proper understanding of time and real estate can help you in your real estate endeavors.

 

The easiest to recognize are the times allotted for performance in a transaction. These include the time provided for acceptance of an offer, completion of inspections and necessary repairs, inspection of title matters, and the close of escrow, the transfer of title. These are usually specified in days in an agreement, the condition must be completed within a certain number of days. Most contracts default to calendar days, the actual number of days that have elapsed, but on occasion a contract is written referencing business days. It is important to recognize the difference so you know the end date for performance, especially around a holiday.

 

There are many time factors in the financial component of a real estate transaction. They include the time allotted for delivery of an Earnest Money Deposit, delivery of any additional deposit, the time provided for securing a commitment for a loan, and the time for delivery of the loan proceeds. More important, however, and less understood, is the time value of money and how much of a factor it plays in real estate.

 

The time value of money is an economic principle that essentially says money sooner is worth more than money later. It is the basis for the Ellwood Tables, the tables used to compute an amortization schedule. Investors understand this principle and often base their decisions using it. For instance, if considering an offer involving owner financing, the offer that pays off in three years is worth more than the offer that pays off over five years. Having the money sooner affords a greater opportunity to use the funds for other gainful investing.

 

Time is having a huge influence in the Short Sale segment of the market. It takes a long time to get answers, and longer to get action from most lenders. Buyers are told up front about the extended time frame and uncertainty, but with the emotion of buying a home on the line, each day can seem like three. By the time a couple of months have gone by many Buyers are exasperated and walk from the transaction, right at the time the sale is approved. The timing can be great for the subsequent Buyer of that property, they can put their Short Sale together quickly thanks to the time invested by the initial Buyer. If you are investing time in a Short Sale be sure to invest enough to get what you are seeking, a good deal on the right home.

 

Our Advice: Timing is everything in life. Timing and time are also everything in a real estate transaction. There are many decisions that involve time in real estate and each can have an affect on the viability of a transaction. When to make your offer, what time frames to offer or request, how long to hold, how long of a loan to get, how long to wait for answers or performance, and when you can move in. Consider which are most important to you and make or accept your offer accordingly. Remember to match the time frames of your offer to the inherent risk factors and you will gain great advantage over others in the market.

 

Time factors can be as important as money is to some people. Learn the motivation of your counterpart in the transaction and determine if you can use time frames to your advantage, and theirs, when constructing your offer or counter offer. When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless! 


Northern Nevada Real Estate ... time and Real Estate

 

Lisa Wetzel and Jim Valentine are real estate agents with RE/MAX Realty Affiliates in Gardnerville. They are short sale and foreclosure specialists and certified distressed property experts.  

 

Contact them at  

carsonvalleyland@hotmail.com www.carsonvalleyland.com 

 

 
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Lisa Wetzel & Jim Valentine
 RE/MAX Realty Affiliates
1320 US Highway 395 N.
Gardnerville, Nevada 89410
775.781.5472 - Cell
775.783.6854 - Direct
775.552.8585 - Fax

- carsonvalleyland@hotmail.com
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Comment balloon 0 commentsLisa Wetzel • December 14 2012 06:02PM

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