What Do I Need to Know About Offers?

Typically, it is a mistake to accept the vendors of the buyer's agent because they will tend to favor the buyer in the event of a dispute. This can be even worse if the vendor is affiliated with the real estate brokerage, which you often don’t know until after the offer is signed and you get an affiliated disclosure form from them.

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What Do I Need to Know About Offers?

June 24, 2019

Things you should know about offers:

You should focus on price, close of escrow date, the earnest money deposit, whether it is a short sale, or has contingencies, the standard cost allocations, and who your vendors are.

Price

Remember, on average, home sellers believe their home is worth 8% more than it actually is – so keep that in mind as you evaluate the price.

Close of Escrow Date

It should be 30 to 45 days out for an offer with financing and 3 to 10 days for a cash offer.

Earnest Money Deposit

Two to three percent of the purchase price is the norm.

Short Sale or Contingencies

Standard contingencies include appraisal, financing and inspection, and the lengths typically run 17 to 21 days. The shorter, the better, for you as the seller.

Standard Cost Allocations

Who typically pays what costs varies from city to city? Check with us before you accept the cost allocations in any offer.

Vendors

It is customary for the seller to select escrow, title, termite company, etc. The offer should read “seller’s choice.” Sometimes buyer agents try to take advantage of sellers who do not know otherwise.

It is typically a mistake to accept the vendors of the buyer agent because they will tend to favor the buyer in the event of a dispute. This can be even worse if the vendor is affiliated with the real estate brokerage, which you often don’t know until after the offer is signed and you get an affiliated disclosure form from them.

If you don’t already have an escrow/title company you like, we can recommend a few that we regularly work with.

DIY Real Estate Now! is a licensed real estate broker in California. DIY Real Estate Now! pledges to support the Fair Housing Act and adhere to Equal Housing Opportunity laws.

CalDRE #01280709.

When buying through DIY Real Estate Now!, to receive 1% applied to closing costs, all parties and lenders must be in agreement.

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