Someone recently came to my blog using the search phrase “what if i decide not to sign an addendum“. I know this because I’m able to track various metrics about the usage of my blog site, including the search terms that bring people to it.
Now, it’s not entirely clear what specifically was meant by this question. A home purchase contract may have several addenda attached for various reasons. Some typical standard addenda include an HOA addendum, an “AS-IS” addendum, a Short Sale addendum, etc. Sometimes an addendum is added due to subsequent negotiations after the contract was executed to indicate the buyer’s and seller’s agreement to new terms that may modify previously agreed contract terms. For example, if the home appraisal indicates a lower price than the agreed purchase price, the parties may agree to lower the price. The new price would be written up in an addendum to the contract and signed by both parties.
Another situation where an addendum comes into play is when purchasing a bank owned property. Typically, the bank will verbally agree to the buyer’s offer then send a a lengthy addendum detailing the bank’s terms. Usually, this addendum will supersede most if not all the terms in the original contract. The buyer then signs the addendum which is then sent back to the bank. The bank will then sign both the main contract and the addendum to fully execute the contract.
In all cases, if either the buyer or seller does not sign the addendum, then it has no effect and can’t be enforced. In the case of the bank addendum, this would effectively cancel the proposed purchase since no contract has been executed. In other cases, the original contract terms would remain in effect assuming the main contract was signed by both parties. In my appraisal example above, the original purchase price would remain in effect and other contract terms may determine the options of the buyer and seller. In this situation, the buyer may have a specific time frame to cancel or be obligated to the pay the original price.
Denise Rentschler
City of Tempe
Community Outreach / Marketing – Community Services
(480) 350-5209 denise_rentschler@tempe.gov
Tempe recognized as one of 118 Playful City USA communities
TEMPE, Ariz. – Tempe has been recognized as a Playful City USA community by KaBOOM!, a national non-profit organization dedicated to promoting play in children’s lives. In the fourth year of this annual program, KaBOOM! awarded the title to 118 communities across the country, 33 of which were repeat honorees from 2009, including Tempe.
Tempe was selected for its outstanding dedication to play. “A notable aspect of its commitment to children – Tempe Parks and Recreation engages and empowers it residents to get involved in the creation of natural shade structures for its play spaces through the Trees for Tempe program,” said Darell Hammond, KaBOOM! CEO and Co-founder. “These 118 Playful City USA communities serve as beacons for the rest of our nation that an investment in children is an investment in our future.”
In keeping with its title of Playful City USA, Tempe will host its second Play Day on Saturday, Sept. 25, 2010, so that Tempeans of all ages can celebrate play together and reap the benefits of being active. The free event will be held from 8 a.m. to 11 a.m. at Kiwanis Park (Mill Avenue and All-America Way). Activities will include kayaking on Kiwanis Lake, open batting cages, tennis lessons, NFL Punt, Pass & Kick youth skills competition and other events for all ages. More information on PlayDay 2010 visit www.tempe.gov/events/playday or call 480.350.5200.
About KaBOOM!
Headquartered in Washington, D.C., KaBOOM! is a national non-profit organization dedicated to saving play. Through community building, the organization is focused on giving every child in America a great place to play within walking distance. Since 1996, KaBOOM! has used its innovative community-build model to bring together business and community interests to construct more than 1,800 new playgrounds, skate parks, sports fields and ice rinks across North America. KaBOOM! also offers a variety of resources, including an online community, free online trainings, grants, publications and the KaBOOM! National Campaign for Play, which includes Playful City USA and Playmakers – a national network of individual advocates for play. KaBOOM! also has offices in Chicago and San Mateo, Calif. For more information, visit www.kaboom.org.
Months supply of inventory is an indicator of how long it will take to sell all homes available in the given price range at the current rate of sales. Typically, 6 months of inventory is considered a neutral or balanced market, where neither buyers or sellers have an advantage. Under 6 months is a sellers’ market, and over 6 is considered a buyers’ market.
Below is a chart showing months of inventory for various price ranges as of August 1, 2010. As indicated, homes priced under $75,000 are in a sellers’ market. Many of these are bank owned homes with high demand, particularly from investors paying cash.
Generally speaking, the range from $75,000 to $400,000 is in the range of a balanced market, with some borderline variation. It wasn’t long ago that anything up to about $150-$200K was considered firmly in the sellers’ market camp. Possibly yet another impact of the loss of tax credit incentives and buyers that made that price range so popular.
Buyers have the upper hand in the market over $400,000, and particularly in the range over $800K.
Click chart for larger image.
Keep in mind that these ranges apply to the Greater Phoenix area. The market segmentation will vary depending on the specific area of interest around Phoenix.
Here’s the August 2010 update from ARMLS (Arizona Regional MLS) for their Pending Price Index (bolding is mine):
THE ARMLS Pending Price Index™ (PPI™) is a predictive market tool exclusive to ARMLS. The Index uses pending sales data from the Arizona Regional MLS system to predict Median sales price and Average sales price three to four months into the future. This information is only available through ARMLS, the sole aggregator of pending sales data.
Pending sales data predict that the Average price will drop over 4% in August to $168.7K and continue downward but at a slower rate in September (3.1%) and October (1.5%) then spike strongly upward, recovering 14% to $183.7K in November.
The accuracy of the ARMLS PPI™ diminishes the further into the future the prediction is made because the sample size diminishes with time. So the strong recovery in November should be tempered with caution because of a long lead time.
The Median sales price shows a counter trend, falling fractionally (only $100) in August and significantly (-3.9%) in September, then recovering strongly October (2.1%) and November (2.0%) to finish right where it started four months earlier.
Overall, the Median and Average sales prices have remained relatively flat over the previous 18 months with only small monthly fluctuations. The Median is exactly where it was in February 2009 and the Average is fractionally higher than it was that same month. The market appears to be in a fairly stable pattern although it is prone to slight dips indicating that the recovery is still tentative and subject to many outside economic factors.
Last month I commented on a graph showing an apparently improving trend in Tempe home value appreciation based on price per square foot. Unfortunately, the August update shows a significant downward movement going from essentially flat appreciation to -13% (click chart for larger image):
Home prices in metro Phoenix are falling again, and new data about upcoming sales suggest that they are likely to keep falling over the next few months, bringing concerns of a housing-market “double dip” closer to reality.
Those considering a purchase soon should keep close watch on pricing trends where you are looking to buy. An agent on your side can help you gather and sort through the data for the local market so you can make an informed decision.
Unfortunately, the Tempe Agent News blog header photo above showing the Tempe Mill Avenue Bridge crossing Tempe Town Lake no longer represents reality.
The lake is man made in the river bed of the Salt River (which is normally dry in this section of the river). It is enclosed on both ends by dams made of [...]
Encouraging chart showing the long term history of Tempe’s average annual appreciation (click for larger image):
While solid evidence of major improvement since last year, there are still many uncertainties in the housing market. Hopefully the trend will continue into positive appreciation over the next year.
Someone recently came to my blog using the search phrase “what if i decide not to sign an addendum“. I know this because I’m able to track various metrics about the usage of my blog site, including the search terms that bring people to it.
