Paso Robles Buyers Information

You have found the house you want to buy. It has the right number of rooms, is the right size, you are satisfied with the property and the landscaping and all the amenities are pleasing. This is the house you want to live in for the foreseeable future. The next step is writing the offer to purchase this home.

Making an offer is not simply deciding on what price you feel the house is worth and how much you are willing to pay. This is the beginning of negotiations and is a major event that will have a strong impact on your finances for many years. In the offer to purchase, you include not only the proposed purchase price but also the following:

• how you intend to finance the property
• how much you plan to put as a down payment
• what home inspections you want performed
• moving timetables
• detailed particulars as to what will be included in the purchase of the home
• terms of cancellation
• which professional services you would like to use regarding the purchase of the house
• when you take ownership of the property
• how to settle any disagreements that might occur.

Your next step after determining your offer price is to decide how much of a down payment you wish to make along with your offer. Generally, the suggested earnest money amount recommended is not more than 2%. The reason for this is if a worst case scenario occurs and there is a dispute which would tie up your down payment. This is not an event that frequently occurs but it is always prudent to protect your finances.

However, in a hot market that favors the sellers where you are competing with a number of buyers for the home you desire, committing to a larger down payment may likely impress the seller in your favor. This may even help to convince the seller to accept a lower offer than is being made by your competitors.

Most home purchases are concluded smoothly. However, in the rare case when a problem does occur, you want to be sure you can cancel the contract without incurring a penalty.

Common contingencies you need to be aware of:

• Some buyers who are purchasing a bigger home will make a commitment on the new home before the old one is actually sold. Consequently, it is important for you to make closing the sale on your own home a condition of your of your offer. Otherwise, if the closing on your home has not gone through, you may be responsible for making mortgage payments on two homes.
• Another contingency that should be included in your offer is that your mortgage is approved.
• A third possible contingency is that the home you are buying is appraised for at least the price you have offered to pay for it.
• And yet another contingency is that the home you are buying must pass all inspections made during the period of escrow.

These built in contingencies are important because if you cancel for some reason without listing these conditions, you could wind up losing your deposit.