How To Make An Offer On a House

So you found the perfect house and you're ready to make an offer. Now what? Here's how the process typically goes for my clients. 




Have your lender run the numbers


Before making an offer, I have my clients' lender run the numbers. They need to know what their estimated monthly payment is so there won't be any surprise later. It includes costs like HOA dues, property taxes, and insurance. They need to know how much money their going to need for down payment and closing cost. 


Have your agent run the comps


When I give my clients advise on how much to offer, I make sure I back it up with data. I do that by running the comps on the property they want to make an offer on. We look both at what similar homes sold for and at the current homes for sale in the area to help them get a feel of the appropriate price to offer. It is my duty to be fair and honest with them so if I think I can get them a deal, I will get them a deal. If I think they should come in at asking, I will advise them to do so. If I think they should come up higher than list price (multiple offer situation), I would be honest about that too.


Determine the terms of the contract


You'll need to determine your offer price, desired closing dates, earnest money deposit, contingencies and seller concessions you'll be needing in order to close the loan. In a competitive market where my clients are competing against multiple offers, I usually advise to shorten the inspection period, appraisal and loan contingency removal and escrow if possible. Ask you agent for advise if you're not sure what to do. This is what we are here for. My clients are all well versed in the process of home buying because I make sure that I answer all their questions and explain everything they're signing. 


Sign and submit your offer


In California, your real estate agent will submit the offer in the form of the C.A.R. Form RPA (Residential Purchase Agreement). Before my clients sign the agreement, I ask them to make sure the names are spelled correctly, the address verified, the numbers are correct and the terms of the contract are exactly what we spoke about. Nowadays, I used Docusign to have my clients electronically sign the documents. I then double check before I submit the offer to the listing agent. 


Offer is then presented and seller responds


Upon receipt of offer, three things can happen. Seller can accept your offer and sign the RPA or seller can just not sign the offer and reject the deal altogether. What usually happens is seller will send a counter offer that a buyer can either accept or counter back. This is when the negotiation takes place. Price, contingencies, repairs, concessions, timelines and many more can be negotiated. Always seek the help of your agent. 


Sales contract is finalized, signed and escrow is opened


Once the sellers and buyers agree on the terms of the contract, the document is updated accordingly and signed. The fully executed purchase agreement is sent to an escrow company to open escrow and assuming everything goes smoothly, you'll be a home owner in 30 days or sooner depending on the contract. 


Note:

If you or someone you know is looking to own, sell or invest in real estate in Canyon Lake - Menifee area and the surrounding cities, I'd love to help! 


Angela Carpio, Realtor

6192285034

AngelaCarpioRealtor@gmail.com

http://www.angelacarpiorealtor.com/

#angelacarpiorealtor


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