Making an Offer

Once you have found the home that you wish to purchase, your Sales Associate will apply their professional training and do all the necessary research to help you structure an effective offer.

This is where your Sales Associate's negotiation skills come into play. When an offer is made, the seller will have the option of accepting, rejecting or counter-offering. Your Sales Associate will negotiate the best possible terms for you.

The purchase offer you submit, if accepted as it is written, will become a binding sales contract (known as a purchase agreement). It is important that it contain all the items that will serve as a 'blueprint for the final sale.' The purchase offer includes such items as:

• Address and legal description of the property
• Sale price
• Terms: for example, all cash or subject to the buyer obtaining a mortgage for a given amount
• Seller's promise to provide clear title (ownership)
• Target date for closing
• Amount of earnest money deposit accompanying the offer, and whether it will come in the form of a check or cash. Also included may be the disposition of the deposit should the buyer back out of the deal at a later date.
• Method by which real estate taxes, rents, fuel, water bills and utilities are to be adjusted (prorated) between buyer and seller
• Provisions about who will pay for title insurance, survey, termite inspections and other details
• Type of deed to be given
• Other requirements such as disclosure of specific environmental hazards, seismic hazards or other locally-specific clauses
• A provision that the buyer may make a final walk-through inspection of the property just before closing
• Any contingencies

Managing the Escrow

When the purchase agreement is accepted and signed by all parties, you Sales Associate will open escrow for you and your earnest money will be deposited. The escrow holds all monies, instructions and documents for the purchase of your home and your lender's funds and documents for the new loan. The escrow officer takes instructions based on the terms of your purchase agreement and your lender's requirements. The escrow officer can hold inspection reports and bills for work performed as required by your purchase agreement. Other elements of the escrow include hazard insurance, title insurance and the grant deed from the seller to you. Escrow cannot be completed until the instructions (requirements) have been satisfied, and all parties have signed escrow documents.

Removing Contingencies

Prior to closing escrow, all of the contingencies of the Purchase Agreement must me met. Your Sales Associate will coordinate this process. Typical contingencies include:

• Approval of the Seller's Property Disclosure Statement.
• Approval of the preliminary title report.
• Loan approval, including an appraisal of the property.
• Physical inspections of the property.
• Pest inspection and certification.
• Acquisition of homeowner's insurance.

Closing Escrow and Moving In!

When all of the conditions of the purchase agreement have been met, you will sign your loan documents and closing papers. You will deposit the balance of your down payment and closing costs to escrow, and your lender will deposit the balance of the purchase price. The deed will then be recorded at the County Recorder's office and you will take ownership of your home.

Your Sales Associate is a valuable source of helpful tips for planning and coordinating your move.