How many home buyers and sellers understand what a default is?  Consumers often confuse the term default with cancelling the sale at any time – even backing out of a contract during the contingency period for a legitimate reason.  Cancellation does not always mean default, though – there are some  fair ways and times to get out of contract without it being a default. 

Default is a strong word which refers to a failure to do something promised in contract or not doing it on time; we sometimes call it “non-performance”.  In the purchase agreement, buyers and sellers both make promises to do certain things within a certain timeframe, so either one could potentially default.  For instance, the following items are areas where a buyer could default:

• not putting the initial deposit (good faith deposit) into escrow on time
• cancelling the sale after removing all contingencies or without cause allowed by the contract
• not removing contingencies on time (or possibly ignoring other deadlines)
• not completing loan papers on time

Sellers, too, can be guilty of defaulting on contractual promises. Here are some areas in which a seller could default:

• not moving out on time
• not providing completed disclosures or reports on time
• not having work done which was contractually required (such as pest work or repairs)
• not keeping the power & water on for inspections and final walk through
• causing a delay in closing due to not signing off on time

In Silicon Valley, there are two purchase agreement forms in use: the California Association of Realtors (CAR) contract and the Peninsula Regional Data Service (PRDS) contract.  Generally speaking, the PRDS & CAR contracts are similar on many points.  They are not so similar in the treatment of defaults, though.

Oddly, the CAR contract only mentions the word default twice, and in both cases the topic is a buyer’s default, first in the liquidated damages paragraph (25) and next in the other terms & conditions paragraph (27).
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Are you thinking of selling your Cambrian Park home? If you live in San Jose’s Cambrian neighborhood (primarily zip codes 95124 and 95118), I have a resource for you: a page I created with TONS of information and links specifically for Cambrian home sellers. 

The page is Cambrian Home Sale (www.CambrianHomeSale.com). There you’ll find:

• current Cambrian real estate market activity
• Cambrian homes for sale
• recent sales of homes in Cambrian Park
• information on finding out your home’s current market value
• Cambrian real estate market trends & statistics
• FAQs by Cambrian home sellers
• links to relevant posts on the Cambrian market
• downloadable (pdf) pre-listing packet
• and tons more!

Please visit Cambrian Home Sale for loads of helpful information specifically provided for Cambrian Park home sellers.

The Campbell real estate market appears to be “past the bottom”, as is the case with much of the Silicon Valley housing market. In some parts of San Jose, “the bottom” was in February or March of this year.  Campbell may have hit that point sooner – but in any event it is now heading back toward a balanced market (30 is the balance point for this formula). (Images and charts from Altos Research, to which I have a subscription and permission to use these, as well as the RE Report, another subscription service of mine. Altos uses list prices, the RE Report uses sold data as well as list prices.)

Let’s look at the data for October in Campbell – actives, pendings, and closeds (care of the RE Report).

While in many parts of the greater San Jose area the Days on Market (DOM) are lengthening, they are shortening in Campbell! Sales are up, but prices are still declining a bit (in several areas of Santa Clara County, prices are again inching up – this tends to happen in less expensive areas).  Pending sales are up and inventory is down.  So there are some mixed indicators but Campbell appears to be at or near “the bottom”.
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Luxury Homes and Estates in the Town of Los Gatos, CA

Los Gatos offers a wide variety of home styles and size, acreage and useage. From small, modest cottages to large estates, there’s something for everyone in Los Gatos. Below, please find the links to available and listed Los Gatos homes for sale offered at two million dollars or more.  These will take you to my other website, PopeHandy.com, and open in a new window.

Los Gatos Homes between $2,000,000 and $3,000,000
Los Gatos Homes between $3,000,000 and $5,000,000
Los Gatos Homes priced over $5,000,000