First Home - California

106 - Making an Offer

Listen Later

In this episode we talk about one of the most stressful and exciting parts of the homebuying process, making an offer on a home.

Topics covered include:

  • The mindset a first-time homebuyer should have about making an offer
  • What’s an earnest money deposit, how much should you put down for this type of deposit, and what are the advantages/disadvantages of putting down more or less than that amount?
  • The advantage of not selling a home before buying a new one
  • The types of contingencies are involved in offers
  • After successfully bidding on a home, how long it should take to close escrow
  • The pluses/minuses of renting back to the seller after you buy a home
  • If there are any contingencies a first-home buyer should think about waving
  • What the process of making an offer looks like, including timelines the steps should take
  • What happens when there are multiple offers to buy a home
  • What the terms “best and final” really means
  • What the term “escalation clause” means
  • Should the first-time homebuyer make bids on multiple properties at the same time
  • What’s a “love letter” or “offer letter” and why there’s risk in sending one
  • Tips on how to survive the stress and emotions of making an offer

    • Our Guest:

    • Mike Shenkman, Licensed Real Estate Agent and lecturer at Department of Urban Studies and Planning at U.C. San Diego

    Other Resources

    Love Letters / Offer Letters

    • New York Times  https://www.nytimes.com/2021/12/17/realestate/you-love-that-house-but-should-you-write-a-love-letter.html
  • Orange County Register https://www.ocregister.com/2021/03/11/do-homebuyer-love-letters-violate-fair-housing-laws/
  • CBS News  https://www.cbsnews.com/losangeles/news/no-more-love-letters-to-home-sellers-calif-realtors-advise/
  • CNN   https://www.cnn.com/2021/05/19/homes/love-letters-from-home-buyers/index.html
  • Money   https://money.com/home-seller-love-letter/
  • National Association of Realtors https://www.nar.realtor/fair-housing-corner/love-letters-or-liability-letters  

    •  

    ...more
    View all episodesView all episodes
    Download on the App Store
    First Home - CaliforniaBy California Department of Real Estate
    • 5
    • 5
    • 5
    • 5
    • 5

    5

    4 ratings

    More shows like First Home - California

    View all
    Freakonomics Radio by Freakonomics Radio + Stitcher

    Freakonomics Radio

    32,045 Listeners

    Housing Matters Podcast by CALIFORNIA ASSOCIATION OF REALTORS and the CENTER FOR CALIFORNIA REAL ESTATE

    Housing Matters Podcast

    33 Listeners

    The Daily by The New York Times

    The Daily

    112,881 Listeners

    Today, Explained by Vox

    Today, Explained

    10,293 Listeners

    Real Estate Insiders Unfiltered by Real Estate Insiders Unfiltered

    Real Estate Insiders Unfiltered

    78 Listeners

    Real Estate Exam Deep Dive by Exam Scholar by Exam Scholar - Real Estate Edition

    Real Estate Exam Deep Dive by Exam Scholar

    0 Listeners

    Real Estate Investing For Retirement by Christopher Story

    Real Estate Investing For Retirement

    9 Listeners