When purchasing a home it is very important to make sure that you have a complete offer package when attempting to purchase a property. The following is what should be included in the package:
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 there agent review the important aspects of the offer.
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)
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.
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: