In a recent article, First American shared how millennials are not really any different from previous generations when it comes to the goal of homeownership; it is still a huge part of their American Dream. The piece, however, also ...Read More
Now is when things get exciting. You've found the right house in the Bay Area, and it is time to make an offer. Although this can be an anxious time, your Bay Area Modern real estate agent will guide you through the process. Every situation is unique, but generally, negotiations follow a similar procedure.
Typically, one of the first things your Bay Area Modern agent will do is request a Seller's Property Disclosure statement from the listing agent. Disclosures are designed to provide you and your agent with any information the seller has about the house, including problems, recent improvements, or anything else that a prospective buyer should know about the property. You will have the opportunity to inspect the property once you are in escrow, but disclosures are an important tool in helping you and your agent create an initial offer.
While the seller's agent will furnish the Disclosure Statement, your Bay Area Modern agent will develop a Comparable Market Analysis (CMA), which establishes a "fair market value" based on market conditions, comparable sales, and our experience. Using these two tools (the Disclosure Statement and the CMA) you, with the help of your agent, will decide on a price and make an offer. Along with the offer, you will be expected to present "earnest money" in the form of a check. In California's Bay Area, earnest money is usually about 3% of the purchase price and will go toward your down payment once the purchase contract is ratified. Now is also the time to present your pre-approval letter.
Your Bay Area Modern agent will work on your behalf to present your offer in the most favorable light to both the Seller's Agent and Seller. Once the offer is presented, the sellers will review the offer and work with their agent to formulate a formal response which will either be Offer Acceptance, Offer Rejection, or a Counter Offer. At this point, you can expect to move-on to the next phase of the home buying process: Negotiations.