Jeff’s Carlsbad Blog for First Time Home Buyers

My Carlsbad Home Offer Has Been Accepted – Now What?

Do you have any idea of what to expect after your offer has been accepted on your Carlsbad home?

Read Part 1 on How to Make an Offer

Read Part 2 on After the Offer Comes the Negotiations

Here in California you will have agreed upon a specific DUE DILIGENCE period (typically 17 days – the default) in your contract (Form RPA). This could be more or less depending on what the seller would agree to. This process may vary somewhat in other states – see your contract.

The DUE DILIGENCE period is critical for you, the buyer. During this time period you must do all your investigations and review all the available documentation about the Carlsbad home you are buying to make sure you are comfortable with it and willing to proceed with the sale. Carlsbad real estate is too expensive to make a mistake – it’s not like buying the wrong size shirt that you can return.

Possible the MOST important thing you should do (I’d say MUST but it’s not required, only strongly advised IMO) is have a thorough home inspection. You really need to know about any defects in the home, repairs that are needed, and so on, before moving ahead. This is especially true if you are buying a Carlsbad home “as is” and when buying a SHORT SALE or FORECLOSURE property.

There will be a host of DISCLOSURES from the seller and from the escrow company (the neutral third party that manages the transaction process for both buyer and seller) that you must review and approve by signing. This is valuable information about the home — you can’t change it but need to know about it and be willing to buy the home knowing what you know — including natural hazards, mold, lead paint, past insurance claims (if any), wood boring insects (e.g., termites), and information from the seller (form TDS) about the home’s systems and condition, among other things.

The other critical event that must happen is you need to obtain your LOAN COMMITMENT so you can remove the loan contingency. The bank must obtain all the financial information from you and conduct an appraisal of the home before they will approve your loan. Failure to obtain loan approval could mean you lose the house.

The DUE DILIGENCE period is a critical one, and you must take responsibility for doing a thorough investigation (including reviewing all MLS data, and perhaps even measuring the rooms) to satisfy yourself. Once this period has passed IT IS TOO LATE.


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