California home buyers today know more about the property they are buying than at any time in history due to the abundance of disclosures they receive throughout the transaction as well as legislation enacted to protect home buyers. But, if you're like most people, somewhere during the process you'll be so worn out by signing and initialing that you'll probably stop reading what is put in front of you and do anything to just get the keys. Which is why you need an experienced full time licensed agent to help you through the process. Here's how it works.
The Offer: After weeks, months, or years of going to open houses, browsing websites, looking in newspapers and who knows what else, you finally find the home of your dreams. Yeah, congratulations, but don't start packing to move just yet. There's a few steps along the way starting with the offer. What is commonly referred to as the offer is, in fact, the "RPA" or Residential Purchase Agreement that is used in most real estate transaction in California. This document becomes the basis for the escrow instructions and the processor and underwriter at your lender will scrutinize the terms and conditions as well. So, after thinking about price for the longest time and speculating with friends, family, co-workers and agents as to whether home prices are going up or down, what you'll soon come to understand, if you have good representation, no let's make that a great agent is that the terms and conditions, which are incorporated into the offer, "purchase contract" or RPA may be as important or even more important than the purchase price. Really. Here's some examples. Let's say your real estate agent forgets to include that the seller pays for termite work, or repairs, or certain reports or closing costs. Guess who gets stuck with those items? Not the agent and not the seller. Just remember you need an experienced real estate agent to protect you throughout this process. Just remember that unless your offer is in writing , it means nothing in CA. So, if you go into a home and the listing agent or whoever is holding an open house indicates that the seller will take your low ball offer, that means nothing. Offers to purchase must be in writing as must acceptance and just about everything else related to the transaction.
The Counter Offer: Unless you are offering full price or more, all cash, with no contingencies (what's a contingency you wonder - read below), and want to close in ten days, chances are you might receive a counter offer from the seller. The counter offer can be on terms, or price, or both. If the property you are interested in buying is highly desirable, there may be multiple offers. And, since this is CA Real Estate, everything must be in writing. If the seller has multiple offers and is responding to more than one buyer, they will check off the multiple offer box on the counter offer form. That means that even if you accept the counter offer and sign, you may not get the property. Sellers do not have to counter the same price, terms and conditions to all buyers. If you aren't in a multiple counter offer situation, it's easier.
Acceptance: Once the terms are ironed out, and both parties have signed and agreed on the price and terms you have "acceptance". The date and time of acceptance is very important as many of the timelines in the RPA are calculated as days after acceptance. Sounds confusing? Not really. If you have 7 days after acceptance to complete a contract requirement, just grab a calendar, look at the acceptance date and starting on the next day after, count 7 days.
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