| We Found Your Dream Home. What Do We Do Now? |
 Once you've found the property you want to buy, it's critical we write an offer as soon as possible. Since we've been targeting homes that are desirable and a good value, chances are other buyers and their agents may have spotted this home too. Speedy action in getting your offer presented to the seller increases the chance your offer will be accepted by the seller, and decreases the chance we'll be competing with multiple offers on the same property. |
| Making an Offer on Your Dream Home |
 Because the law requires all agreements for the sale of real estate to be in writing, we'll put the terms of your offer onto a Real Estate Purchase Agreement, a multi-page standard form designed by California Association of Realtors attorneys. This Agreement is used throughout the State. It is very detailed and consumer-oriented, protecting the interests of both buyer and seller. Terms of the Offer: The price you're willing to pay, the close of escrow date (when you'll become the owner), your possession (time by which seller must be out), terms of your mortgage loan and details of all other aspects of the purchase are spelled out clearly in the purchase agreement. The agreement notes which side of the transaction (buyer or seller) will be responsible for paying each of the costs associated with the transaction. Contingencies in the Offer: There also are contingencies in the purchase agreement. Even when your offer is accepted by the seller, your purchase is contingent upon your being able to examine, within time frames spelled out in the agreement, virtually all aspects of the property, including its physical condition, the title (for easements, etc.), and its value (via an appraisal). Earnest Money Deposit: When I present your offer, I'll be expected to show that you've put up an earnest money deposit (good faith deposit check) to show that you're serious about the purchase. Sellers expect to see a deposit equal to three percent of the purchase price. Once your offer is accepted, the earnest money check is deposited into escrow and applied toward your down payment. If your offer is not accepted, the check is returned to you uncashed. You are never at risk of losing your earnest money deposit unless you default on (breach) your contractual obligations. |
| Presenting Your Offer |
 Because you have a pre-approval letter from a recognized, reliable lender, your offer will carry more credibility than a competing offer which is not accompanied by such a letter. And because I've spoken in advance with the seller's agent regarding details such as the seller's ideal moving time and preferred service providers, we'll have a better chance of receiving the seller's acceptance instead of a counter offer. |
| What the Seller's Response to Your Offer Means |
| Offer Accepted: If the seller accepts your offer (hooray), it becomes the full agreement between you and the seller once the acceptance is acknowledged by you or by me as your agent. The seller may still show the property to solicit back-up offers, but your agreement prevails unless one of your contingencies is not met. Offer Rejected: The seller may reject your offer. If the seller accepts a competing offer, yours is automatically rejected. In that event, our only hope is that the seller will agree your offer can be in first "back-up" position in the event the transaction resulting from the accepted offer encounters insurmountable problems. Offer Countered: If the seller doesn't like all the terms of your offer, hopefully we'll get a counter offer. A counter offer lists changes to your offer that would make it acceptable to the seller. While you're deciding whether to accept the seller's counter offer, the seller may legally withdraw the counter offer and accept an offer from another buyer. The seller has the right to do this until the seller or seller's agent has received and acknowledged your signed acceptance. Multiple Offers Countered: When the seller is countering more than one offer, it is so noted on the counter offer form. Your acceptance of the seller's multiple counter does not automatically mean you'll get the property, since the seller is countering other offers too. Buyers in a multiple counter offer situation can accept the seller's counter as written, or they may counter the seller back. In this kind of situation, competing buyers may at this point even increase the price they're willing to pay. A multiple counter offer does not become the prevailing agreement until the seller has signed it a second time. If this all sounds confusing, don't worry. I'll be with you every step of the way. Note: Foreclosures, REO's, corporate relocations, short sales and probates are more complicated and usually require other paperwork. In addition, some listing brokers and local real estate associations have their own addendum to attach to an offer. We'll go over provisions of all offer paperwork before you sign it. |