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Selling the Covenant

Challenge

A beautiful contemporary home with stunning views of the Rancho Santa Fe Valley needs to sell in a market where many homes are sitting for months, even years. Although justifiable the price is at the high of prices per square foot in the area and the size/configuration of the home makes it an attractive offering for a particular niche of clientele. How to get the job done and protect the seller’s profits?

Solution

The task required Adam to be on the lookout for non-standard opportunities to deliver results the client rightfully expected. This head’s up, proactive approach led him into talks with a particular buyer who was just the right fit, but for whom timing didn’t align. Adam structured a proposal for an extended escrow with an up front down payment released directly to the seller and an interim occupancy agreement in exchange for rents equal to the seller’s carrying cost plus an attractive yield % on the capital that would remain tied up in the home. The buyers performed all inspections and removed all contingencies prior to moving into the home.

The Extra Mile

Providing the management services along the way made a big difference for the clients. Also, the structure of the interim occupancy agreement actually increased the sellers profits on the sale during a time when the overall market remained largely flat. The buyers were thrilled to get into the home when they did and it was truly a win-win for everyone involved!

Result

After quickly negotiating with the buyers for repairs, Adam assisted with their move in and arranged a temporary property management agreement with the owner so they would not be inconvenienced during the rental term. After 9 months, the buyers were ready to complete the escrow (ahead of schedule) and the sale was executed.

President, Broker
CalBRE #01363100