There it is! The Beautiful Home (or as near to it as we can get … sometimes concessions are necessary) we have been looking for, and we are ready to make the offer. It shouldn´t be a daunting thought because we have scrutinized all possibilities.
What do we do now? How does this property compare to what is available for sale. What has recently sold, how does this property compare? This report is called a “Comparative Market Analysis”. This report, called a “CMA”, gives a us an idea of what the comparable home sales in that subdivision have been, how does it relate to others similar to it that have sold. What is the price range of those properties that sold in the area, how long have they been on the market, and what similarities do the properties have?
In addition to this information, we look at:
- * How long the property has been on the market
- * Has there have been any price reductions during the listing period
- * Have there been any other offers on the property
- * What the motivation of the seller is.
After a day out, you know unconsciously if a home fits. You become some what of an expert in evaluating corporate apartments Denver. Unfortunately, since our areas are so different, some are older, some are subdivisions, other are condominiums or Planned Unit Developments, sometimes there are similarities to them, other times not so much. The question is: do you like the property?
We finally are content with a price that we will offer on the property. We start to fill in the “California Residential Purchase Agreement and Joint Escrow Instructions”. This contract is very through. The California Association of Realtors is constantly review issues that arise from real estate transactions, and they have input of attorneys, appraisers, loan companies, inspection companies, termite companies, and Realtors in California and across the United States. Their goal is to make it as fair as possible for both buyer and seller.
Now we go at the pace that is comfortable for you. You need to understand the contract and what it means to you as you enter in to this agreement. Each paragraph is part of this “review and preparation” process. The first document again affirms and acknowledges agency, and that Priority One Realty exclusively represents you as a buyer.
Then we get into the “offer to purchase”. Here is a summary of that document, and its highlights:
- * Date
- * Where the contract is signed
- * Name of the “Buyer”, that would be you.
- * We identify the property ? address and parcel number
- * Price being offered.
- * When we expect Escrow to Close ? usually 30-60 days. We HAVE to close escrow when we say we are going to close escrow.
- * Then we give a brief overview of what we expect the financing to look like.
This includes:
Initial deposit, and who this is given to.
- Sometimes this is called earnest money.
- This is held by the escrow company until closing
- Becomes part of the down payment on the property.
- Are we going to increase the deposit?
- Loan description: type of loan, interest rate, etc.
- Other financing issues: second, etc.
- What are you putting down
- All of this adds up to the “Purchase Price”
Now we start talking about what you “buyer” are going to do and what they “seller” are going to do.
Letter from your Lender indicating you are “ready to perform” is due in 7 days. This usually accompanies the offer.
- Verification of down payment
- Contingencies
- Loan
- Appraisal
- No loan contingency
- All Cash Offer
That is a large amount of information. I am glad you have had to review this “before” the action begins! So what do we do next? We represent you, so we are responsible to “guide” the contract through the process. We contact the listing agent who represents the seller, and let them know that we are making an offer. If it is possible, we will be negotiating with the seller and the listing agent at the property on your behalf. We will absolutely be functioning on your behalf! You can be confident of that.
In the San Diego market, it is typical to have multiple offers. Usually, there are counter offers. Time is of the essence, as the contract states. A fair offer usually generates a fair response. You can be assured that there will be no possible alternative that is available, that we will not explore. Our goal is to help you acquire the Home that you choose. We are looking for the best scenario for you and for your family.
Let´s assume that the seller accepts your offer. We need to get the Home Inspection done. It is best if we both attend, it is important for you to become familiar with the property; it is going to be Your Home. If you are not available, we will be there. You will receive an inspection report, outlining every detail regarding the property, including the appliances, plumbing, electrical and the roof. If repairs are in order, we will request those repairs, in writing immediately.
There are other inspections that could be important to you, or follow-up inspections that are a result of the general Home Inspection. Once these inspections are completed and approved, we are ready for the next stage, the closing process.
