Skip to main content

Your First Home: Step 5-Make an Offer


That house you just walked through was perfect. In some ways you were compromising with it, but it hit all the major points and in that corner the L shaped couch is going to be placed. And think of all those boxes you are going to have to get. But before we start talking boxes, we need to put an offer.

When writing an offer, make it a strong one. Also remember, you were thinking with your heart before-think with your head now. An offer can be broken down into three things: Price, Terms, and Contingencies. In terms of price, your agent will know if it is priced well or you should be offering more based on comparables (comps). Defer to their knowledge as they are the market expert. Terms, decide what details of the transaction you would like to handle: when the deal closes, does anything stay in the house, who pays closing costs. Use this to create a win-win situation for both you the buyer and them the seller. Lastly contingencies, there are five standard contingency clauses in a real estate contract-financing, inspections, clear title, condition at delivery, and community restrictions. The purpose of an contingency is to offer you a way out if the house has a problem you were not aware of when you went under contract.

Some offers get accepted without any negotiations, and others need negotiations to get to a reached agreement. If the sellers want to negotiate, they will write a counteroffer. You can accept their counteroffer-or counter their counter. When an agreement has been reached, you as the buyer will deposit an earnest money check into an escrow account. Escrow will hold the deposit until closing day. Whats next you ask, to remove all contingencies and close the deal.

Join us next week as we do our due diligence and remove contingencies!

Orange, CA-TRREG DRE#01843673-RP100 DRE#02059058-P:714-831-1800-E:info@theresultsrealestategroup.com-W:www.theresultsrealestategroup.com-Facebook - Twitter - Instagram - LinkedIn
Reference: Your First Home by Gary Keller
Labels:
Location: Orange, CA, USA

Comments

Post a Comment

Popular posts from this blog

Real Estate Investments: Invest Up

I want to speak briefly to the masses today. Normally our audience is the Buyer and Seller, and yet it is easy enough for anyone to become both. It could even happen that you are a Buyer, Seller, and Investor at the same time! How can this be? Me, a normal person can be a Investor? Yes. Even more than that, as soon as you start your journey you start doing something greater than yourself, building generational wealth. Let's start at the very beginning, a very good place to start. This beginning looks like a house purchase. That would be because it is a house purchase. Assuming you are buying this house to rent out, you are now a Landlord and Investor. The first house is going to be the scariest, it gets easier from there. Let's assume you have rented out the house for a couple of years and you are looking to upgrade from a Single Family Residence to a Duplex. You would sell your Single Family Residence and 1031 the proceeds of the sale into the purchase of the duplex. Yo...
Post a Comment
Read more

Why Real Estate is Such a Good (Great) Investment: Part 5-(Can we) Build it (yes we can!)

This is the next installment of a 7 part series exploring ideas of why real estate is such a good investment. The focus will be on single family and multifamily real estate, but a good idea is a good idea, enjoy.  Building is a straightforward way to add value. There are really two classifications of it. Either remodeling or constructing. In terms of remodeling, as mentioned in a prior post, it is important to find a 'quarterback' that knows what and who to ask. Improvements should be thought of in terms of how much value it will bring, it has been said that kitchen and bathrooms are the highest return on investment. https://www.remodeling.hw.net   has a very good annual report ( linked here for Los Angeles, see last page ), some highlights is that a MINOR kitchen remodel returns 105% of the money put in. Other things include the expected, Grand Entrance (108.1%), Garage Door (123.8%) and perhaps unexpected, Deck Addition, wood (98.8%), Windows, double pane (102.6%)New ...
Post a Comment
Read more

Why Real Estate is Such a Good (Great) Investment: Part 3-Sell it

This is the next installment of a 7 part series exploring ideas of why real estate is such a good investment. The focus will be on single family and multifamily real estate, but a good idea is a good idea, enjoy.  Alas, today we will be discussing the main thing people think about when they think about real estate investing, selling the asset high after buying low. The biggest advantage to selling real estate is the value added you can do yourself. There is no requirement to hire anyone to do any repairs on the property, as real estate is sold as is. You can do your own marketing, your own negotiating, there does not have to be anyone between you and the market unless you choose for there to be. You choose your partners at terms you both agree with. With that great power, comes great responsibility. Though you can do it yourself, it is more advisable to partner with those who do it every day, rather than every so often. Consider that a real estate transaction employs a...
Post a Comment
Read more