Jeff’s Carlsbad Blog for First Time Home Buyers


Buyers – How to Make an Offer

Posted in Offers,Realtor's Job by Jeff Dowler on December 17, 2007

Once you have identified the home you would like to purchase, it’s time to make an offer. This aspect of the buying process probably causes more anxiety than anything else.

 

The right offer will allow you to play in the negotiatin game, the wrong one will result in you being struck out.

Here’s what you need to do:

Decide on the offering price – this is perhaps the most important thing you need to do, and you must do this in a thoughtful way. Consider what you can afford (based on being approved) but also look at the value of the property as compared to other homes that have sold. Your agent can help you examine this information, but the choice of offer is YOURS. No one wants to overpay for a home, and in a buyer’s market you have more negotiating room, but don’t assume you can waltz in with a low ball offer and walk away with the deal of the century. Ideally you want to make an offer that the seller will respond to, not one that is so ridiculous that the seller ignores you, refuses to respond, or counters at full price.

In addition to price, make decisions  – about offer contingencies, desired closing date, the time frame for the seller to review the offer and get you a response, how much to put down as a deposit, items you wish included in the sale (if any), date to complete the due diligence period (this may vary based on standard practice in your state/region, your personal situation, etc.), the timing of the home inspection (this is essential)

Review all required paperwork (this will vary by state, but in California the primary form is the RPA or Residential Purchase Agreement and Joint Escrow Instructions) and complete all required items. This should be done with your Agent, who can help you make the right decisions.

Sign, initial and date all pages as required.

Complete other required paperwork (varies by state) – in California you will sign an agency disclosure (form AD – Disclosure Regarding Real Estate Relationships), the Buyer’s Inspection Advisory (Form BIA) and the Disclousure and Consent for Representation of More Than One Buyer or Seller (Form DA)

Provide a check for the deposit to accompany the offer – a copy will be submitted; the actual check is not given to the listing agent until the offer has been accepted.

Make sure you get copies of all the paperwork that you signed as well as a copy of the deposit check.

Go home, celebrate your first offer, and try not to get too anxious

The next phase is the Presentation of the Offer and Negotiations (counter-offers, if applicable).

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  1. […] Read Part 1 on How to Make an Offer […]


  2. […] Read Part 1 on How to Make an Offer […]


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  4. […] worrying about getting your loan commitment…then getting it Read Part 1 on How to Make an Offer […]


  5. […] Read Part 1 on How to Make an Offer […]


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