Congratulations on finding the perfect home! Now that you're ready to make an offer, there are a few important steps we need to take to ensure a smooth process. Please provide the following information to help us draft a strong and competitive offer tailored to your needs. You can email me the answers, text them over, or fill out the form here for your convenience.
Full Legal Name and Contact Information: Please provide the full legal names of everyone who will be on the contract, along with their email addresses. It's essential that these names match the identification you will use at closing (driver's license or passport).
Proof of Funds (POF): In the Bay Area, showing proof of sufficient funds is required when making an offer. We'll set up a secured Google Drive where you can upload financial statements showing your down payment funds. This can include bank statements, stock brokerage account statements, or 401K statements. We only need a one-page document showing your name and current balance.
Initial Offer Price: What price would you like to initially offer for the home? I will provide you with comparative market analysis (comps) to help you decide, but ultimately, the offer price is your decision.
Your Walk-Away Price: This is the maximum amount you're willing to pay for the property. Deciding this upfront will guide us during negotiations and ensure we stay within your comfort zone.
Closing Date: When would you like to close on the home? Typically, closings in the Bay Area take around 30 days on average. Cash offers can often close faster, usually within 7-14 days. Let me know your preferred date (Monday to Friday), and we'll work towards making it happen.
Earnest Money Deposit (EMD): In Silicon Valley, the earnest money deposit is typically 3% of the purchase price and counts towards your down payment. It's crucial to have these funds liquid and available for wiring the next day if your offer is accepted. EMDs are due within 1 business day. If your offer includes contingencies, this money will be refunded if you decide to withdraw from the contract.
Down Payment: What percentage of the purchase price are you planning to put down as your down payment (e.g., 5%, 10%, 20%)?
Closing Cost Credits: Would you like to ask the seller to pay any of your closing costs? This can be negotiated based on your financial situation. While it's less common in Silicon Valley's strong seller's market, we can evaluate this option on a case-by-case basis.
Home Warranty: Do you want to request a home warranty from the seller? It's typically recommended and costs the seller between $500 to $800. Most sellers are open to providing a home warranty as it can give them peace of mind when selling their home.
Contingencies: Are there any other contingencies we should include in the offer? For example, do you need to sell your current home before purchasing this one? The three most common contingencies are Loan, Appraisal, and Home Inspection. You can read more about them here.
Note: Personal buyers' letters to the sellers (buyer love letters) are not prohibited by law in California, but they are strongly discouraged. The content of these letters could potentially violate fair housing laws. To avoid any legal issues, we can include something very generic like "Buyers really love this home" to convey your enthusiasm.
Once I have this information, I'll prepare the contract and a detailed offer letter outlining all the terms and conditions of your offer. This includes contingencies, the desired closing timeline, and any additional requests such as repairs or seller concessions. I will send you the offer-related documents for signature via DocuSign. Please ensure timely signing, ideally on the same day they are prepared.
If you'd like to review a contract in advance or have any questions about the process, feel free to reach out. I'm here to guide you through every step of the way and ensure a smooth and successful transaction.
Let's make your dream of homeownership a reality! Contact me at [Your Realtor’s Contact Information] to get started.
Happy house hunting!
California Association of Realtor Residential Purchase Agreement Sample
