Monday, June 13, 2011

Making an Offer on Your Potential La Cañada Home

-Get preapproved. In the case that you find a home that you love and would like your La Cañada Realtor® to submit an offer, it is critical that you have already been preapproved  so that you are not doing this at the very last minute. When your La Canada Realtor® submits an offer on a home, he or she will also include a copy of your preapproval letter and a copy of your financials to show your proof of funds and make your offer more desirable to the seller.

-Review comparables with your La Cañada Realtor® to determine a price. Your La Cañada Realtor® will provide you with comparables for similar properties in the neighborhood within the last six months to determine a price to meet or exceed that value.  Your goal as a buyer should be to offer as high a price as possible within the range of values that the home will realistically be appraised for.

-Determine contingencies. Contingencies is another word for the specifics listed in the contract that the buyer is willing to accept or the changes they want to have made before closing escrow. Contingencies protect you in case you cannot perform or choose not to perform on a promise to buy a home. The three most common contingencies are: inspection contingency, loan contingency and appraisal contingency. A home inspection contingency allows a buyer to walk away from the purchase contract if the inspection uncovers major defects that the seller won't fix, a loan contingency allows a buyer to walk away from the purchase contract if the buyer is unable to obtain suitable financing and an appraisal contingnecy allows a buyer to walk away from the purchase contract if the subject property does not appraise for at least what you agreed to pay for it. 

Make sure to read the purchase contract thoroughly and ask your La Cañada Realtor® if you have any questions before signing. Be ready for a rebuttal bid. The homeowner has the right to come back to the buyer with a higher bid or make changes to the contingencies on the contract. Rarely is a purchase contract agreed upon on the first try.

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