Carlsbad Buyers, Are YOU Prepared to Make an Offer?

By
Real Estate Agent with Solutions Real Estate CA DRE #01490977

Carlsbad Buyers, Are YOU Prepared to Make an Offer?

 

For many Carlsbad buyers, making an offer prompts a great deal of anxiety and emotion, especially considering the amount of money involved.

 

Ready to make an offer on a house?In our competitive market where home tours are more like a party, with multiple offers and plenty of cash buyers, you have to be prepared.

 

Carlsbad Buyers, Are YOU Prepared to Make an Offer?

 

If you aren’t prepared, you are wasting your time and your agent’s, plus you won’t get the house you want. Although if you aren’t serious none of this matters anyhow.

 

Here’s what I recommend:

 

Talk to your REALTORTALK WITH YOUR REALTOR

 

Your REALTOR is invaluable in helping you plan an appropriate home buying strategy. He or she can also help you understand current market conditions (e.g., multiple offers) and what to expect with regard to making an offer, whether it’s a short sale, REO or traditional sale.

 

REVIEW THE CMA (Comparative Market Analysis)

 

As in a listing, preparing a market analysis based on recent comparable sales and inventory will help you make the right initial offer. No one wants to overpay, but with the competition a low offer will simply not work.

 

Are you pre-approved?MAKE SURE YOU HAVE A CURRENT PRE-APPROVAL

 

No offer will be accepted without a current written pre-approval, not one that is months old (and NOT a pre-qualification). Some REOs and short sales also require you get pre-approved by a specific mortgage professional from the bank who owns the home (the REO) or who holds the 1st lien on the short sale.

 

HAVE PROOF OF FUNDS (POF) READY

 

It’s common for a POF to be requested for buyers with loans when purchasing an REO or short sale to document you have funds for the down payment and closing costs. Certainly in ANY cash purchase you must provide a POF. Very recent documention is essential – a 3-month old bank statement won’t cut it.

 

REVIEW THE STANDARD OFFER PAPERWORK

 

You should already have seen a sample copy of the standard offer paper work (it varies from state to state) and hopefully reviewed it with your agent. There are key decisions to make to structure a competitive offer – price, time for closing, buyer and seller costs, financing terms, time frames, contingencies (loan, appraisal, property investigation, HOA docs, government reports) and more.

 

What date works for closing and moving?WHAT TERMS AND CONDITIONS ARE IMPORTANT

 

While your offer (and final) price are something you must decide on, other terms and conditions might also be important to you. The date of closing may be one. How soon can you close and move, and are you willing to negotiate closing date for the right price?  How much deposit can you put down (practice varies but a low deposit does not demonstrate good faith and seriousness)? Are you asking for all appliances to be included, and are the particular fees you want the seller to pay?

 

Are your serious about buying?GET IN THE RIGHT FRAME OF MIND

 

In our market with around 2 months of inventory, be prepared to make a strong offer and realize it’s likely your offer will not be the only one. Act quickly and try to offer the best terms and conditions you can. If you dilly dally while you think about it, especially on a new listing that is well priced, you will lose it. You also have to prepare for the fact that the best offer you can or want to make may not be enough, and you will have to keep looking.

 

Ready to make that offer? You should be now!

 

Ready!! Aim!! Fire!!

 

 Search for Carlsbad Homes for Sale

 Search for Homes with Views in Carlsbad

 Search for Waterfront Homes for Sale in Carlsbad

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Nina Rogoff 01/27/2013 11:48 AM
Topic:
Home Buying
Location:
California San Diego County Carlsbad
Groups:
1st Time Buyers
Posts to Localism
CALIFORNIA REAL ESTATE
Advice for Buyers
HyperLocal Neighborhood and Community Posts
Tags:
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Rainmaker
637,633
Maria Morton
Chartwell Kansas City Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

Jeff, two months of inventory! Wow, the Carlsbad real estate market is booming! Great way to start 2013!

Jan 27, 2013 11:01 AM #1
Rainmaker
1,167,686
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

In this heavy sellers' market if you don't have all your ducks in a row you are going to miss out.  This is great advice Jeff.  Your buyers are going to be ahead of the crowd

Jan 27, 2013 11:16 AM #2
Rainer
355,890
Nina Rogoff
RE/MAX Executive Realty - Medfield, MA
Sells Real Estate!

This is great information for buyers, Jeff. We also have a sellers' market in Sharon MA and I expect that some buyers will not have agents who will explain this to them. I'm going to reblog this post! Thanks!

Jan 27, 2013 11:37 AM #3
Ambassador
1,542,073
William Johnson
Retired - La Jolla, CA
Retired Real Estate Professional
Hi Jeff, This is simple, concise and excellent. Certainly would be a great hand out to remind a Buyer how important these aspects are for being properly prepared to make the offer.
Jan 27, 2013 12:02 PM #4
Ambassador
4,045,362
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Maria - well it is good news for sellers but a challenge for buyers. And it's true in other nearby communities, too.

Jane - it certainly requires a lot of additional discussion that was not necesary a number of months ago, but important for buyer to know.

Thanks, Nina. Glad to hear things are doing well there also. I expect that's true all over the Boston area.

William - and that is something I am putting in place for my buyer kit.

Jeff

Jan 27, 2013 01:07 PM #5
Rainmaker
3,220,330
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jeff I totally agree with your advice. The market is identical here in the Greater Los Angeles as well and this post applies here too!

Jan 29, 2013 09:21 AM #6
Rainmaker
686,759
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Jeff, it's amazing how many buyers are calling me and are not aware what they have to do to get ready to make an offer. Nowadays you absolutely need a pre-approval, no one looks at an offer without that.

Jan 29, 2013 11:43 AM #7
Rainmaker
1,323,620
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource
Jeff, it sounds like many buyers I come across...unfortunately for buyers they really aren't in the drivers seat anymore (depending on location)... Gotta be ready to act and come prepared... Great post for buyers to read.
Jan 29, 2013 12:08 PM #8
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Jeff Dowler, CRS

The Southern California Relocation Dude
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