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M O NT H L Y N EW SL ET T E R B Y L I N DA LA N E- WH IT E – K EL LE R W IL LIA M S REA LT Y S E R VI N G M Y H O M ET O W N OF A LT A D E NA/ PA SA D E NA A ND O UT L Y I NG A R EA S
How To Evaluate a Real Estate Offer
January 2008
Linda Lane-White “Singing” Realtor ® CA Lic #01091347 Notary Public In T un e W ith Y ou r N ee d s
445 S. Fair Oaks Avenue Pasadena, CA 91105 Phone: 626-786-1231 Fax: 626-296-1979 www.lindalanewhite.com
Inside this issue: How To Evaluate an Offer
1
Ceedub Construction
1
Property For Lease
2
Recipe of the Month
2
Healthier Home Air
2
Five Acres
3
Ask An Expert
3
Mortgage Services (sponsor)
4
Recent Area Sales
4
Martin Luther King Jr
5
Senior / Active Adult Info
5
January In Dena Land
6
Artis Lane
6
You put your house up for sale, had several showings, and got an offer. Great! Now what? The price looks good, but what else should be checked? Here are a few things to consider: Buyer’s Financing If there’s no money, there will be no sale, so unless the buyer is paying cash you need to verify that she can get financing. Usually the contract will not indicate whether the buyer has been preapproved, but a smart buyer will still include a letter from his/her lender stating that she can get the loan. You or your agent can (and should) call the lender and double-check that the buyer’s credit report has been reviewed, employment and down payment money verified and that the underwriter has OK’d the application. If none of this has been done you’ll be entering into an iffy situation that could result in delays, additional costs and a disappointment for you. Earnest Money Deposit A serious offer is always accompanied by an earnest money deposit. The higher the deposit, the better for the seller. Why? Because the more the buyer has to lose, the less likely he will be to try to back out later. Like anything else in the contract, the earnest money amount is negotiable, so if you are unhappy with the amount offered you can
ask for more. Dates and Deadlines In real estate time is of the essence. There are a number of events that need to happen in order for the transaction to close successfully, and they need to happen on time. There should be clear deadlines for the inspection(s), appraisal, loan approval, and the closing date. You’ll also want to make sure that the buyer is not asking for excessive time for each
event. For example, the inspection should occur very soon after the contract is signed. The appraisal and the loan approval should not be due at the last minute—if there’s a problem with either of these you’ll want to know as soon as possible. This way you can act quickly to help resolve the problem (if it can be resolved) or look for another buyer (if it can’t). Special Conditions Real estate contracts come with strings attached which are more professionally referred to as “contingencies.” A contingency is a condition that must be fulfilled in order
for your transaction to close successfully. You should be wary of any vague contingencies or the ones that you can’t control. For example, the buyer may insist that your contract is contingent upon him selling his home first. Well, does he have a buyer yet? Has that buyer been pre-approved? Or did your buyer “forget” to even list his house? Any vague contingencies should be clarified (in writing!), or better yet avoided altogether (if possible). These were just the basics of evaluating real estate offers. There are, of course, more details to consider. Make sure you have a good Realtor alongside you who can go over the contract details with you, prepare a counteroffer if necessary, negotiate on your behalf, and get you the terms you desire.
Remodeling? Adding On? Need a New Home Built? Ceedub Construction (626) 786-1229 CA Lic #883002 Chris White, Owner (30+ years of experience) 519 Alameda, Altadena FREE ESTIMATE Residential and Light Commercial