Todd's Real Estate Blog

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We found a home we love, now what?

Homes for Sale in San DiegoWe found a home we love, now what?

We submit an offer right away!  Since we already talked with the lender and have a pre-approval letter in hand, we can move forward and actually submit the offer.  To get a blank copy of the California Residential Purchase Agreement so you have time to thoroughly read and write down any questions you may have just contact me here.  We will sit down with you and explain the entire contract and answer your questions. 

There are many things to consider when writing an offer and we will go over each one independently with you because each scenario is different.  However, there are steps in the process that will always be the same.  Things like Escrow, Title, Home Inspections and such.  I will give a brief overview of the entire process from start to finish so you can get an idea of the flow of the transaction.  During the transaction we will provide you with a calendar with all the important deadlines to remember to make it easier for you to plan your move. 

The California Residential Purchase Agreement or RPA is written to protect you, the seller and the brokers in the transaction.  It allows you sufficient time you to do your due diligence with inspections, appraisals, financing and other important items.  With our in depth knowledge of the contracts, we are always looking out for your best interests. 

Things you need when you are ready to write the offer: 

  • A good faith deposit check - 1 to 3% of the purchase price but it can vary.  Escrow will deposit this check in the escrow account.  
  • How long of an escrow period do you want?  30 days is the norm but we can go shorter or longer.  Or you can choose an actual closing date.  
  • What title company do you want to use? I can provide some recommendations.  The seller usually pays for the title insurance.  
  • Which termite company do you want to use?  I can make recommendations.  The seller usually picks up the tab for the wood destroying pest inspection, repair and treatment of any infestation. 
  • What escrow company do you want to use? Again, I can provide some recommendations from previous business.  Escrow fees are usually split between the buyer and seller.  It falls under closing costs. 
  • What Home inspector do you want to use? I can give you a few to choose from.  Be prepared to pay the property inspector on the day of the inspection.  Depending on the square footage, a home inspection will run you from $250 for a small condo and up to $3000 for very large homes. 
  • Your lender will set up for the appraisal so we don't have a choice on this.  As the buyer, you will be paying for the cost of the appraisal.  Costs typically run 400 to 500 dollars.  Usually the payment is taken out during escrow from your closing costs. 
  • You will also need to decide on how much money you want to put as a "down payment".  If you are  going 100% financing as with a VA loan then you don't have to worry about this.  Offers with larger down payments are always stronger than an offer with 100% financing.  
  • We will also ask for a one-year home warranty from a company of your choice.  I can make recommendations on companies.  The seller usually picks up the tab for the home warranty. 

 

 

 

Comment balloon 2 commentsTodd Armstrong • September 09 2009 09:37AM

Comments

Good information for home buyers. Many well qualified first time buyers will miss the opportunity to receive the $8,000 tax credit if they do not get into the market and meet the 11/30 settlement deadline.

Posted by Roy Kelley (Realty Group Referrals) over 11 years ago

I'm hoping they extend the $8,000 credit through next year.  Just like the "Cash for Clunkers" program, this one is working well. 

Posted by Todd Armstrong (Pacific Sotheby's International Realty) over 11 years ago

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