Just Sold: 1705 Marshallfield Ln #B Redondo Beach
If you read my previous post about the sale of my listing at 5241 Pacific Terrace in ThreeSixty South Bay, here’s the second part of that transaction - the buyer’s “up-leg” purchase of 1705 Marshallfield Ln Unit B in North Redondo Beach.
This is a great case study of how to pull off a contingent purchase when the to be sold home hasn’t even been listed yet.
You may start off by asking….
What is a Contingent Real Estate Offer?
In addition to the “standard” contingencies of appraisal, loan, and inspections (or rather buyer investigations) a buyer can make an offer contingent on the sale of their current home.
There's a few varieties of how making contingent offers work and they are spelled out on the C.A.R C.O.P. form. Yes, that’s really the name of it.
The strongest position a buyer can be in is their home is listed, in escrow and all the contingencies for their sale have been removed by their buyer. In other words just waiting for escrow to close.
Next up but weaker is in escrow but contingencies not removed yet.
Following that is listed but not under contract yet and last is listing signed but not on the market yet or listing not signed yet.
In the last example, the buyer is basically saying to the seller “trust me, I’ll get my place sold”.
There's a number of reasons that Buyers make contingent offers with the most common being they need the proceeds from the sale to buy the next home. This is closely followed by they need to get their current mortgage off the credit report in order to qualify for the new mortgage (DTI issue.) Quite often it is both.
The Structure of Our Contingent Offer
What we offered was a 55 day escrow with 30 days to get the buyers home into escrow and the sale contingency being in place for the entire time. Here’s what that means in plain language. Within 30 days of acceptance the buyers would have to open escrow on the sale of their current (not yet listed) property and close escrow on that within 55 days of acceptance of the Marshallfield offer. Meanwhile the sellers of Marshallfield could not “bump” them out of the deal because the contingency would remain in place for the entire time - or at least until the escrow closed on their current property.
We offered very short contingency periods for the inspection, loan, and appraisal which were 7 days for the inspections, 12 days for appraisal and 15 days for the loan. Additionally I advised my clients that they would probably have to out bid others in order to make the contingent offer more attractive.
About 1705 Marshallfield Ln Unit B
This property is an over size 4 bedroom attached rear unit 2 on a lot. It was listed for $1,249,000 and the final (multiple offer) sales price was $1,310,000.
The home is 2726 Sq Ft with a private back yard. The listing agent described it in the MLS as:
“A short stroll to Hermosa Beach and situated in the prestigious Redondo Beach school district this is a fantastic home in an ideal location. This traditional floorpan property boasts central air conditioning, an outdoor kitchen, engineered wood floors, a high-end custom built whiskey lounge, newer appliances, and no monthly dues HOA dues.
The almost 2800 square feet of this two-on a lot home is situated off the street, making it both quiet and entertainment ready. It is light and bright with soaring ceilings, 4 bedrooms, a laundry room and open space all upstairs. Downstairs beyond the entryway you'll find the dining room, upgraded kitchen and two living spaces. One of these opens directly to your newer outside bar & kitchen, boasting stone counters, refrigerator and cook space, a conversation area and a turf yard. So, yes you can have the indoor/outdoor lifestyle most people desire. Award winning and coveted Jefferson Elementary is the home school for 1705 Marshallfield and it feeds into the equally impressive Parras Middle and amazing Redondo Union High School. While no home is perfect, this may be the perfect home for you.”
1705 Marshallfield Gallery
