I discuss phase 3 of the home buying process, the buying phase.
Hello and welcome to another episode of the Reside Daily Bite; I’m your host, David Doucette and today, we are going to continue with our four steps or four phases of the home buying process. Today, we’re going to be covering step 3 -the buying phase- which can be the most exciting phase for many people. The other day, we covered step 1- the looking phase. Yesterday, we covered step 2 – the finding phase and here we are at the buying phase.
Our agent is hired, we’ve been attending open houses, very important – we are pre-approved. We are ready to start submitting offers.
So, the very first thing that we’re going to do in this buying phase is we’re going to start writing offers. And, one very important point is this “S” right here; we’re going to be writing several offers during this phase. Sometimes, the first offer you’ve put in maybe the one that is accepted but, typically, you’re going to be writing several offers before you have one that is accepted. So be prepared for that.
We are also going to, here in the LA area, have a 3% deposit. It will have to also be submitted with our offer (or within 3 days, submitted to escrow actually). The point is you need that 3% deposit of your purchase price (it needs to be liquid…sitting in your savings account that you can access it and get that 3% in once your offer is accepted). Very important to have those funds liquid and if we’ve been doing our homework on step 2, we’ve already done that.
The next thing is we will negotiate the offer. So, we submit an offer…now, we’re going to negotiate. There might be some back and forth (maybe some sort of negotiations, some counter offers). There’s no accepted offer at this stage; we’re still negotiating. We have a seller who’s interested in our offer and has opened the dialogue but anybody else at this time can come and swoop in and submit a better offer. You would want a good agent who can definitely negotiate for you at this phase.
Then, the offer is accepted. Very emotional experience at this point, very excited and you know what, let’s POP THE CHAMP. So, we’re going to pop the champagne when the offer is accepted. But wait! We’re not ready to do that yet…let’s hold off on that. This is really only the beginning. Once that offer is accepted, the escrow period will open and that escrow period is typically lasting 30-45 days, sometimes longer, depending. There are a lot of things that can happen during that escrow phase and we’re going to talk about that tomorrow -the closing phase.
This is a very important phase, a very exciting phase. But just keep in mind, once that offer is accepted, the work is really just beginning at that point.
Questions or comments… 1-800-476-5579 or feedback to email@example.com. My name is David Doucette and thank you so much for checking out the Reside Daily Bite.