Make an Offer
Step 4 Make an Offer
Now that you have found just the right home, the next step is deciding on the price you are willing to pay. Your agent will prepare a Comparable Market Analysis (CMA) which details the price and features of homes that have sold recently near the home you have chosen.
Once you have studied the CMA you will be able to determine if the sellers have priced their home fairly compared to similar homes. One thing that buyers quickly find is that they become very aware of value. After a few days of looking at homes, buyers know, instinctively if a house is priced competitively.
After you have examined the market statistics and become comfortable with an offer price your agent will prepare the California Residential Purchase Agreement (RPA-CA) listing your terms for the purchase including the amount you're offering and any contingencies or conditions your circumstances require.
Your agent then provides the seller’s agent with your offer and supplemental documents along with your lenders pre-approval letter to present to the seller. The pre-approval letter shows that you are a serious buyer with the ability to purchase their home if you and the seller agree on price and terms.