No good real estate offer should be considered from a buyer without a pre-approval letter from their bank or mortgage broker unless the buyer can pay cash and then they should offer prove that they have the funds.

20%+ down payment

The higher the down payment the better. As the down payment exceeds 20%, it allows the buyer wiggle room on a loan if the home does not appraise for the offer value. This minimizes the risk to the sellers. ,

Size of a good faith deposit

At least 3% initial deposit allows the seller to have an active maximized “liquidated damages” clause. The bigger the check the buyer puts down, the more they are signaling their intent to follow through with the real estate purchase.

Fair market value

The law of substitution rules the real estate market. The offer price should reflect fair value for a like property.

Few demands – “AS IS”

An “AS IS” still allows the buyer to do inspections and walk away if they don’t like the results, but the buyer will not request the seller to make repairs. It's always nice to receive an "as-is" offer, but during slower real estate markets you can expect buyers to often demand repairs from the sellers.

Short contingency period

The smaller the number of days a buyer offers to complete all inspections and have their loan approved the better. This decreases the window of time that the buyer can walk away from the home. The ideal period changes depending on how quickly lenders are approving loans. Its best to check in with lenders to determine if the contingency period requested by the buyers appears reasonable.

All disclosures

All disclosures signed and included with the Buyer’s offer. This means the buyer is aware of any defects with the home and still wishes to make an offer. Signed disclosures helps prevent the real estate deal from falling apart and having to put it on the market again.

Timing

When do you want to be out of your home? Look for close of escrow dates that may accommodate your plans.

Vabrato Real Estate Services (650) 346-1595