Let's Make an Offer
You finally saw the home you are ready to make an offer on, what next?
Depending on the market (currently we are in a fast market) you need to be ready to write the offer within hours of seeing the property! To make that offer your realtor will need you to send them an email with a few more things:
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Full legal name of every person who will be on the contract.
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Email addresses and phone numbers for each person on the contract.
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Offer Price: Make sure you are aware what your mortgage will be and have a conversation with us and/or your realtor. You do not want to make an insulting offer on a property just because you "want a deal".
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Closing Date/Escrow Days: In Los Angeles, the typical closing date is 30 days after your offer is accepted. You can sometimes request a longer closing date, remember that the longer your try to make escrow the weaker your offer might look. In a highly competitive market you want your offer to be as tight as possible.
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Earnest Money Deposit (EMD): Typically, the EMD is around 3% of the sales price. This will need to be wired to escrow within 3 days of offering being accepted. The EMD is part of your down-payment.
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Down Payment Amount: Let your Realtor know how what percent is your down-payment. The offer detail everything from start to finish.
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Home Warranty: Will you be asking the sellers for a home warranty to cover the breakdown of any major appliances in the home?
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Contingencies: Besides the typical contingencies such as inspection, appraisal and loan are there any other things your realtor should know? Do you need to sell your home before buying a new one?
Once all of these questions are answered and the contract is ready to go there are a few options and they differ depending on the realtor. You can meet in person to sign the contract or, what most agents do, you can electronically sign the document.
Before signing your first offer (or any offer if you would like) contact your agent to go over it in detail or schedule a sit down with them. Once the signed offer is submitted, it can take 24-72 hours for the sellers to review and accept or counter.
If the property is new to the market there is a chance there is an "offer deadline". Be patient when waiting for a response. You aren't aware how many offers there might be or what is happening on the sellers side. If this is the home you want it is worth the wait. Your realtor will keep you as updated as they can.