Once you find your dream home, we will work with you to prepare your offer and advise you on strategies, time frames, and details of the contract.
You should be prepared to make an “earnest money deposit” (also known as EMD, typically 3% of purchase price) within three days of acceptance. Should you choose not to proceed with the transaction due to inspection or loan issues, and cancel the transaction within an agreed-upon period, this deposit is returned to you.
We will draft your o!er for you using the standard California Purchase Agreement. After reviewing it with you, we will send it to you for electronic signature. We will present the signed Purchase Agreement to the seller along with the following items:
- Pre-approval letter from your lender
- Proof of funds, including a copy of your bank statement with account numbers redacted
- A personal letter from you to the seller. Use this to introduce yourself and tell the seller what you love about their house and why you want to buy it. It doesn’t hurt to include a photo of yourself and your family as well.
Contingencies are clauses in the contract that describe conditions that must be met and agreed upon by both the buyer and seller before the contract is binding. Most offers contain three contingencies:
Inspection, Loan, and Appraisal.
- The Inspection Contingency gives you the right to have the home inspected within a specific time period. Based on the findings of the professional home inspectors, you can negotiate repairs (or credits for repairs), or cancel the contract.
- The Loan Contingency states that you, the buyer, are not bound to the contract if you fail to obtain approval for financing by a certain date.
- The Appraisal Contingency is the bank’s opportunity to make sure that the home you are purchasing is worth what they have committed to lending you.
When submitting your o!er, you should be prepared to negotiate terms including price, deposit, contingency deadlines, and other key factors. Will guide you in this process. The seller can respond in a variety of ways.
Here’s a look at typical responses:
Acceptance: Your offer has been accepted. Once signed by the seller, the offer becomes a binding legal contract.
Counter Offer: The seller requests adjustments to your o!er, such as changes to the price, closing date, or conditions. You may accept the counter offer by signing the document, or you may counter back. Note that many properties in Los Angeles are in high demand, in which case, the seller may counter multiple offers at the same time. In this case, the offer is not binding until both the buyer and the seller have signed and agreed.
Rejection: The seller may reject your offer and end the process.