The Opes Insider: Monthly Newsletter for Buyers and Sellers

Making a Difference for Our Clients

A Realtor® partner had clients that she could see were unsure about their housing decision and not ready to buy. She referred them to Opes, given our unique way of modeling the home purchase decision in context with a client’s financial life.

The clients were first time homebuyers in a very favorable rent situation. Our Personal Finance Advisor learned the clients were concerned they couldn’t afford a down payment and monthly mortgage in addition to the expenses of starting a family in the coming year.

Using Opes Advantage, our unique software, we were able to model their potential home purchase as well as the projected costs for raising a family over a longer time horizon. The clients were able to compare the impact of buying a home now verses continuing to rent for a few more years. Seeing the positive long‐term financial impacts of a home purchase and what their current and future monthly expenses might look like while paying for both a new home and a new family was extremely helpful to the clients. They were able to gain confidence that they could afford a new home at this time, with just a few adjustments to their current lifestyle expenses. The clients felt settled in their decision to purchase a new home and start a family.

The result? Clients who were now confident in their home decision, pre‐approved for their mortgage and ready to purchase their new home.

Solution for “As Is” Obstacles: Escrow Holdbacks

Many buyers in a competitive market purchase homes “As Is” to make their offer more attractive to the seller. This means that they will not ask the seller to do any
repairs or replacements as a condition of buying the property. So what happens if a buyer discovers a surprise repair during his or her due diligence process? These often minor repairs can be very unsettling, as neither buyer nor seller wants to delay escrow to have the repairs completed. Even if all parties are flexible with the time needed to make the repairs, paying for repairs prior to closing can create a problem. The seller usually has reasons for leaving the repairs unfinished, or they wouldn’t be selling the home “As Is” in the first place. The buyer will not want to pay for repairs on a home they don’t yet own because if the escrow doesn’t close, there is no way for the buyer to recoup these repair costs. This issue often causes major aggravation for all parties involved.

Recognizing the problem, and in an effort to eliminate the timing and payment issues with minor property repairs, Opes Advisors will now allow Escrow Holdbacks. This program enables escrow to close on time prior to repairs being made. It allows for buyers or sellers to leave funds in escrow to pay for the repairs after closing. Best of all, it eliminates the heart burn that can happen from both payment in advance for repairs and from delayed escrows!

Please contact me if you’d like to learn more about how I can help you in your home purchase decision.

Help when you make the most important financial decisions of your life.

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Ed Gerety

Ed Gerety, MBA
Personal Finance Advisor
Mortgage Advisor
NMLS 338608
831.600.1588