I've got another company to insure the property from May 15th, when my current coverage expires, until I sell the place. I just did an online search and pretty much chose a company at random. I have to pay for a year, but since the house is selling soon, I'll get most of that back when I cancel the policy. The company I got was about $100 more per year than what my current insurance company charged me, so this exercise provided a nice little verification that my current insurance provider has decent prices.
Tip: Remember to either get the policy in the name of your company or, if the insurance company won't do that, get your company listed as an "additional insured" on the policy! Protect yourself legally from having the "corporate veil" punctured.
House 3: Sale Moving Forward
Last night, I faxed my agent the Seller's Property Disclosure Statement and Lead Based Paint forms. That should be the extent of the info I need to provide the seller.
I also contacted the escrow company this morning to make sure a couple things were clear. I mentioned that my title insurance policy should be the same as the one I bought last time, since I paid extra to hold the policy open. I confirmed I was getting investor rates. We also discovered the escrow write up was done incorrectly - it listed me personally as the owner of the property, instead of my LLC. That was corrected. They told me there was no need to fax them my Articles Of Incorporation since they have the copy from when I bought the house. I also mentioned I will be out of town on the closing date, which they said was no problem. And finally, I got the escrow number for my reference. Oh, I will need to provide them with my bank account information so they can wire the funds to me.
The next step in the sales process is for the buyer to have the property inspected and to present me with a list of items, if any, they want me to fix. They have until the 16th to do this.
I also contacted the escrow company this morning to make sure a couple things were clear. I mentioned that my title insurance policy should be the same as the one I bought last time, since I paid extra to hold the policy open. I confirmed I was getting investor rates. We also discovered the escrow write up was done incorrectly - it listed me personally as the owner of the property, instead of my LLC. That was corrected. They told me there was no need to fax them my Articles Of Incorporation since they have the copy from when I bought the house. I also mentioned I will be out of town on the closing date, which they said was no problem. And finally, I got the escrow number for my reference. Oh, I will need to provide them with my bank account information so they can wire the funds to me.
The next step in the sales process is for the buyer to have the property inspected and to present me with a list of items, if any, they want me to fix. They have until the 16th to do this.
House 3: A Double Dose Of Not So Good News (Updated)
A while back, I got notice that my insurance company was canceling coverage of this house, effective May 15. I had asked my agent to see if there was a way they would extend coverage until it was sold. I had not heard back from him yet, so I sent him an email over the weekend. This morning, I got a reply. They will not cover the property based on the condition of the rear patio and roof, not even until it is sold. So that leaves me without coverage for approximately three weeks, assuming escrow closes on schedule. It's tempting to just let the coverage lapse and go without insurance for those three weeks, but that's too great of a risk to take. I'll have to start shopping around for another insurance company.
The other bit of bad news was that the title company I want to use does not have a Spanish speaking person on staff, which my buyer needs. The only reason I want to use this title company is that when I purchased the house, I bought an option to keep the title insurance policy open so that when I sold it again, I wouldn't need to buy a new policy. I've emailed my agent and told her the situation. If the buyer is willing to pay my title insurance costs, I will be willing to use whatever title company they want.
Update: My agent said she didn't feel like dealing with changing title companies, so she called the title agent directly. It turns out the title company has a mobile agent that travels around. This person speaks Spanish and can go wherever the buyer is to get the documents signed. Sweet!
The other bit of bad news was that the title company I want to use does not have a Spanish speaking person on staff, which my buyer needs. The only reason I want to use this title company is that when I purchased the house, I bought an option to keep the title insurance policy open so that when I sold it again, I wouldn't need to buy a new policy. I've emailed my agent and told her the situation. If the buyer is willing to pay my title insurance costs, I will be willing to use whatever title company they want.
Update: My agent said she didn't feel like dealing with changing title companies, so she called the title agent directly. It turns out the title company has a mobile agent that travels around. This person speaks Spanish and can go wherever the buyer is to get the documents signed. Sweet!
House 3: Sold!!
Just got the word that my counter offer was accepted! The house is sold! The only condition is that the title company I requested be used have a Spanish speaking employee to translate for the buyer. I'll check on that on Monday.
One more oops - I neglected to notice that I will be out of town on the day we are supposed to close escrow, June 5th. I'll be in Los Angeles seeing a Springsteen concert :-) I should be able to get all my stuff done early though, so it shouldn't be a problem.
One more oops - I neglected to notice that I will be out of town on the day we are supposed to close escrow, June 5th. I'll be in Los Angeles seeing a Springsteen concert :-) I should be able to get all my stuff done early though, so it shouldn't be a problem.
House 3: Offer Received
An offer came in last night at around 9 PM. The agent's cover sheet said the buyers fell in love with the house and will work to make the sale happen. I have the house listed at $199,000. They offered $205,000 with me contributing 3% towards the purchase - meaning their offer is really for $198,850. They also want me to pay for the appraisal and home warranty. I'm going to counter back that they pay for the appraisal and warranty. The only drawback to their offer is that the buyers are getting 100% financing, so there is a chance the sale could fall through if they are not approved. I'll have to review the financing disclosure in detail to see their loan status. On the plus side, however, they are putting up a $1,000 earnest money deposit.
