Offers and Escrow

Posted on June 19, 2007 | by Denny Oh

Ok, so youve found the house you love and you want to make an offer. How do you know what a good offer is? Should you lowball them? Are there other offers on the home? What if they accept? Then what? All of these are great questions and Im sure you have a ton more. But its okthis is what I do for a living. I didnt become a realtor by chance, or after selling shoes for 30 years, or after trying 5 different jobs. I became a realtor after college and this is all I do “ my point is, I know what Im doing and Im dedicated to my clients.

The first step in making an offer is doing some research on the home. Luckily, I will have already done this by then and Ill tell you what kind of activity is going on with this particualr home. Are there offers on the home? How many? How strong are they? Why is the seller selling? Do they need a quick escrow? I wont bore you with the details now, but its my job to find out as much as possible about the home and the seller. This way, we can fine tune your offer and make it as appealing as possible, even without considering the price.

Once weve discussed these issues, we can move on to pricing. Now a lot of this depends on what the sellers motivation is and what the markets doing. Generally speaking, homes usually sell within 3“5% of the asking price – again, this is not an exact science and obviously there are exceptions. Having gotten a pre-approval letter already, well know what prices youre comfortable with, financially, and now its a matter of determining what the market value of the home is and what your ego will let you do. This is where comparable properties, or comps, come into play.

Subject
Property
# MLS# Address ZIP MAPCD BR Baths ESF LP/ SF List Price DOM
1 076015920 10887 Pinot Noir Cir 92131 1210B2 4 3 2320 $345 $800,876 V 114
Average 4 3.00 2,320 $345 $800,876 114
Number of Properties: 1

Subject
Property
# MLS# Address ZIP OMD BR Baths ESF LP/ SF List Price DOM
1 071044791 11454 Heartwood Way 92131 6/14/2007 4 3 2540 $287 $729,900 10
2 076042560 10570 Oakbend Dr 92131 5/29/2007 4 3 2184 $366 $799,900 4
Average 4 3.00 2,362 $327 $764,900 7
Number of Properties: 2

Subject
Property

# MLS# Address ZIP COE BR Baths ESF List Price LP/ SF Sold Price SP/ SF DOM
1 076018352 11712 Fidelio Ct 92131 4/19/2007 4 3 2395 $729,000 V $304 $705,000 $294 20
2 076026262 12550 SWAN CANYON PL 92131 5/31/2007 4 3 2290 $729,000 $318 $709,000 $310 12
3 066097654 11797 FANTASIA CT 92131 1/04/2007 4 3 2395 $745,000 $311 $725,000 $303 15
Average 4 3.00 2,360 $734,333 $311 $713,000 $302 16
Number of Properties: 3

Comps are homes that are similar to the home in questions “ this means size, location, age, style, view, and/or anything else that might affect them homes value. Sometimes comps are easy to find and sometimes there are none. It just depends on how unique the home is and how many recent(depending on the market, I go back about 3“6 months) similar sales there have been. I will create a custom Comparative Market Analysis(CMA), like the one above for you and show you what things have been selling for, how long they were on the market and go over the differences between the comps and the target home. These comps will help us calculate the homes value and give us some ammo when presenting your offer.

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