Submitting an offer

The process of submitting an offer on a home.

The process of submitting an offer for a home

Once you have gone through the pre-purchase evaluation, deciding on your home musts vs. home wants, the shopping for homes, choosing a home, it is time to submit an offer.

How this process works is your agent will write up an offer on a California Residential Purchase Agreement® This contract should state everything in writing that you are offering and for what. It is important that every I is dotted and T is crossed. This will become a binding sales contract if the offer is accepted by the seller. This type of paperwork is best handled by a real estate agent and their team.

A California Residential Purchase Agreement is a contract between an individual/entity intent on purchasing said property. The terms of the agreement, the price, the closing date, the deposit or earnest money, any provisions, tax adjustments, who will pay for title, survey, inspections, a timeline for the next steps and time limits and any contingencies that will allow for the cancellation if necessary.

California Residential Purchase Agreement

Here is a list of what items must be included in the purchase agreement.

  • The address and description of the property.
  • The buyers and sellers’ full legal names, brokers names.
  • The sale price or offering amount, terms of the agreement, and closing date.
  • Tax and fee adjustments between both parties.
  • Who will pay for title, survey, inspections, insurance, and any other fee’s.
  • Earnest money amount.
  • Contingencies that will allow cancellation if necessary.
  • Any additions that may include things such as washer dryer or other stuff that they buyer wants included in the sale.
  • A timeline of the process, next steps, and time limits.

Once the offer is submitted to the seller the clock is ticking and the seller has a certain amount of time to either accept the offer or send a counteroffer. If the seller sends a counteroffer, the ball is in the buyer’s court and the clock is ticking for buyer to accept the counteroffer, come back with yet another counter offer, or decline buying the property.

The most important thing buyers need to remember is to be is patient. Let your real estate agent act as liaison between you, the sellers and their agent. It is not uncommon for counteroffers to go back and forth to make adjustments that include flexibility on pricing, closing date, and appliances.

What are contingencies for a home in a purchase agreement?

What are contingencies?

Contingencies in this case mean asking for extra information or documents and if not found, you will be able to back out of the purchase without financial obligation or harm. Some common contingencies are

  • Loan/financing contingency
  • Home inspection
  • Insurance
  • Title

Having contingencies are great for buyers however keep in mind that this may work against the buyers negotiating power and the seller may choose another buyer with less contingencies even if the offer is less. These are things to consider however some contingencies may not be negotiable to you as a buyer such as title history, home inspection, and financing. Title history will find any clouds on the title. A title report, done by an authorized title company, will almost always be a contingency in a purchase contract. A home inspection will look under the hood of the home and give a deep dive of the structure of the home. It can find anything that may not be visible. Work with your agent as he or she can help you develop a plan that will help you compete while protecting your interests. Contingencies will be written in the purchase agreement.