In today’s competitive home buyers market you must make sure you dot all your I’s and cross all your T’s! And the first step in doing that is submitting a Completed Offer Package. Below, I’ve broken down what items must be in your offer package and what each item is. Whether you are buying a home in Orange County California, Southern California, or anywhere in the State, this is how it should be:
- Offer package coversheet : On this cover sheet will be all the major details of the offer and what is included in this package. This will help a seller and their agent review the important aspects of the offer.
- Personal Letter : When putting in an offer on a standard or equity sale, you are dealing directly with an owner. For the most part an owner has some sort of emotional attachment to their home and they want to make certain that the person they accept to buy their home will take great care of it. The personal letter is for a buyer to directly connect with that owner, and to express their interest and how they will treat and take care of the home.
- Pre-approval letter (if getting a mortgage) : A pre-approval or pre-qualification letter has become pretty much mandatory when offering on any property. With today’s mortgage market being the way it is, every seller wants to make absolute sure that you, as a buyer, are fully qualified for your loan and that there will be no hiccups during the transaction
- Proof of funds for the down payment : This simply is a bank statement that shows proof that you as the buyer, have the full down payment amount and the funds necessary to close the transaction.
- Purchase agreement (offer): In California this is called the Residential Purchase Agreement or RPA-CA. This 8 page document has every detail regarding the offer terms, agreements between buyer and seller, and all of the timelines and guidelines. This is a very important document that is review by both parties, escrow, and the lender (if a mortgage is needed)Here is a sample copy of the Residential Purchase Agreement:
- Agency Disclosure: This is a disclosure that states which broker and agent will be representing you, the buyer, on a specific transaction. It also goes over and states exactly what there fiduciary responsibilities are towards you.Here is a sample copy of the Agency Disclosure:
- Copy of Deposit Check : This is a copy of the earnest money deposit check. The amount of this check is written on the first page of the RPA-CA. Typically it is anywhere from 1%-3% of the purchase price.
- Comparative Market Analysis : As a buyer you will be provided with comparables or comps, of the property you wish to place an offer on. With this information you and your buyer’s agent will determine an offer price. So that the seller of the home is on the same page as you, make sure and send them a copy of the comps that you used to determine the offer price. This will make the negotiation process easier and smoother.
By having a completed offer package, a buyer is increasing their chances of getting accepted, rather than if they just sent the offer by itself without the supporting documents. Watch the following video for more information:
What are your thoughts? Would you add anything else to an offer package, we would love your feedback and comments below