subject: Foreclosures In California: Understanding Your Purchase Offer [print this page] Buying foreclosures in California involves several steps and this includes making a purchase offer. A purchase offer is not equivalent to a purchase, at least not yet, unless such has been accepted favorably by the seller of the property.
In California, a purchase offer is not yet the last step in the negotiation process especially if the parties are still bargaining for contract contingencies that include loan contingency stipulations, appraisal agreements, cancelation, return of earnest money and others.
The Purchase Offer
A purchase offer is an expression of your interest in buying a property. It is through such offer that you convey your desire to purchase a property. If accepted, then you and the seller may proceed to an agreement but usually the bank or the owner of the property will make a counter-offer. This means that they have not accepted your offer but might be interested to pursue a transaction with you if you are agreeable to their counter terms following your purchase offer.
Some people are too careful in that they put off making their purchase offer until the last minute. However, since foreclosures in California are hot properties, this strategy may not be a good idea as you could lose the opportunity to buy a good foreclosure. The foreclosure industry is also a tough arena where good opportunities can escape you if you are not quick enough to seize them.
If your purchase offer is accepted, then you can proceed into completing the transaction with the seller. This is why it is important that before you make an offer, you must be a hundred percent sure that the property is the right one for you. Otherwise, you could lose credibility as a buyer and investor if you make it a practice to drop your offers at the last minute and when they have been duly accepted by the seller.
The good thing about being the first to express your intent in buying foreclosures in California is that the seller might just be willing to accept your offer especially if you are the sole person who has offered to buy the property. This could put you in a good bargaining position and can give you a room to negotiate for a lower price, free closing costs, and others.
Of course, the best way to prepare for your purchase offer is to prepare for it financially. Arrange your finances so that you will know the reasonable amount that you can set aside for your initial offer as well as additional amounts that you will need in order to win the property.
by: Joseph B. Smith
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