I Don’t Want That in the House

Buyers are often confronted with lots of stuff when they are touring homes they are considering buying. And, equally often, the question is ” does that stay with the house or does it go?”

This is a great question, and one every buyer should ask.

When you submit an offer you will want to define or clarify any issues about stuff that you want vs. what you don’t/ Without making it complicated, in general ALL the sellers’ personal possessions or “personal property” are expected to be taken (including the trash), while things that are “attached” generally stay. Things like appliances can become big issues in negotiations since the sellers may want some of them (often the washer, dryer, and refrigerator). Commonly the MLS will list which appliances convey with the house, but NOT ALWAYS. So if these are important, you should check AND list them in the offer as remaining with the house.

Bear in mind that this is negotiable, and simply asking for all the appliances, or other things, does not mean the seller will willingly leave them. That may depend on your offer. Admittedly some sellers are not very clear about these things,, change their minds, etc. which can lead to confusion, and disrupt the negotiation.

By the same token, if there are things you do NOT want, it does not hurt to spell that out in writing so there is no confusion. You are in a much stronger position to demand something be removed if it is spelled out in the contract both you and the seller signed.

Talk with your agent about these issues before you get too far along. It can help avoid any problems.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2007 Jeff Dowler Carlsbad Homes and Real Estate Tidbits

When Do I get the Keys to My New Home?

The most exciting thing about buying your new home is having closing, obtaining the keys, and walking through the front door. So when does this happen?

Keep in mind that closing occurs in different ways in different states. In some locales you may sit down with your agent and an attorney, or some other professional, to sign paperwork and then receive your keys right there.

Here in California you normally receive the keys once the escrow company has received all the paperwork, your loan has been funded (i.e., the money is in escrow’s account), and the recording of the deed and other documents has occurred). You might meet your agent at the house, or be able to pick up the keys somewhere else once closing has occurred and you receive a call to that effect. Check with your agent as closing gets close so you know what to expect.

Sometimes folks want to get the keys early so they can start moving in, especially if they have movers bringing things. You will have to obtain permission from the sellers in order to do this, and often they are unwilling to do so becuase of liability issues. But there are exceptions

When making your offer, make sure you specify in the offer when possession is to take place. It could be, say, 5 PM on the date of closing. But sometimes sellers want it to be later so they can move out. You will have to come to an agreement on this.

WARNING!I recommend that you do not make specific plans with movers, arranging for vendors to do work, etc. on the day or closing, adn perhaps not even the day after, unless they can be changed. Sometimes things get delayed, through no fault of your own. If you do get possession when expected you could be in a bind.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2007 Jeff Dowler Carlsbad Homes and Real Estate Tidbits

What You Should Know About the Offer to Purchase

This is a reprint of an article I wrote some time ago for buyers on my ActiveRain blog. There is lots of good stuff there, too, for buyers, including information about San Diego communities and housing in general.

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Buying a Carlsbad home, or a house elsewhere in North County, means using the standard California Residential Purchase Agreement and Joint Escrow Instructions (a.k.a. RPA).

It’s an imposing document, especially for first time buyers. The standard document is 8 pages of single-spaced contract language, so for someone who has not done this before it CAN be intimidating.

There are critical decisions that YOU have to make along the way.

But here are some hints to get you through the offer process. However, the intent is NOT to review everything, since you need to do some of the Q and A stuff with your trusted Buyer Agent (you DO have one, don’t you? Someone to represent YOUR fiduciary interests?).

There are some KEY DECISIONS you will need to make (but NOT an exhaustive list), so knowing about these in advance will give you some time to ponder the issues, and give some thought to what you might want to do with regard to these matters.

1. Purchase price- obviously this may be THE MOST IMPORTANT issue you have to decide. Give this a lot of thought. And make sure you talk with your buyer agent to review the comparable sales so you can develop a strategy. This can, and will likely be, a major point of negotiation with the seller.
2. Initial Deposit- how much are you going to put down as a deposit with the offer, i.e., your good faith down-payment. Not everyone has money but not putting down a deposit will make your offer very weak and a concern to the seller.
3. Loan Amount- how much are you going to finance? This will depend on your down-payment and how much you are qualified to borrow. If you have not gotten pre-approved, do it NOW!
4. Balance of the purchase price- if you have other cash you will contribute in addition to the deposit and the loan, you need to indicate that. Some folks only put down the down-payment and the balance is financed.
5. You need to provide verification of your down-payment and closing costs, in writing, normally within 7 days.
6. Loan contingency – unless you are a cash buyer, your offer is probably contingent on getting a loan, and you will need to obtain approval of your loan within a specific period, typically this is the standard 17 day contingency period (but negotiable).
7. Closing date and occupancy – when do you plan to close and obtain occupancy? This can often be a critical date for the seller too. Be prepared to negotiate the time frame.
8. Costs associated with the purchase – there are a series of questions about costs for which you must decide (or propose) who is paying for what. Some of these are traditionally the seller, some are the buyer’s, and some are shared. These include things like the inspection, wood destroying insects inspection and damage remediation, other inspections, natural hazards report, escrow fees (usually split 50/50 but again this is negotiable), transfer taxes, HOA transfer fees, home warranty and more.
9. Issues relating to statutory disclosures
10. Items to be included or excluded – things like appliances
11. Sale of your current home contingency - will not apply if you don’t own a home or can buy a new one without selling your current one.
12. Contingency Period - the standard period during which you much review all the disclosures, have your inspection, obtain your loan and more is 17 days, but is a negotiable time period. You will be expected to remove ALL contingencies by the end of the agree-upon time frame.
13. Liquidated damages - if you default you may be subject to loss of all or a portion of your deposit. This can be limited to 3% of the purchase price depending on the conditions.
14. Dispute Resolution - in the event of a dispute, you might agree, with the seller, to go through arbitration in order to resolve the issues.
15. Miscellaneous Terms and Conditions - maybe it’s a short sale, or there are other terms you want to include
16. Expiration of Offer - how long will you give the seller to consider and respond to your offer. Without a specified date, the default is 3 days.

There you go…a pretty good list of the things you need to consider in the offer process. Not an easy task, and there are some important decisions you will need to make. A qualified, knowledgeable REALTOR is your key to success here.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2007 Jeff Dowler Carlsbad Homes and Real Estate Tidbits