Making an Offer for a Purchase

Making an Offer for a Purchase

Typically, when homebuyers are ready to make an offer, they meet with the real estate agent and complete the Offer to Purchase form together. You may also want to write your offer with the help of an attorney. Although you can prepare an offer yourself, it is not recommended.



An Offer to Purchase includes detailed, complex information. If you try to write an offer by yourself, you may make mistakes, omit or include items that would put you at a disadvantage relative to other buyers or trap yourself into an agreement that is not in your best interest.

When you are ready to make an offer, get a copy of your state’s form from the real estate agent and look it over carefully. Have either the real estate agent or an attorney thoroughly explain every item on the form to you so that you understand exactly what you are committing to before you actually write an offer.


Making the offer:

There are many factors that may influence the amount you would offer for a home:

  • How much you can afford.
  • How badly you want the house.
  • How many other buyers are interested.
  • How motivated you think the seller is.
  • How much work might need to be done on the house.
  • How the property compares with other similar properties


SUBMITTING AN OFFER

Once you have found the right property, the next step is to make a purchase offer to the
seller.


Determine the price you want to offer

  • The price the seller is asking may or may not reflect realistic market value.
  • The best way to determine market value is with a Comparative Market Analysis
    (CMA) showing similar properties that sold recently, those that are currently active
    on the market and those that failed to sell.
  • I will discuss with you an estimate of costs associated with purchasing this property.


Decide on financing

  • We will review together the status of your loan pre-approval.
  • We will work together with your loan officer to explain financing options and help
    you determine the mortgage plan that best fits your requirements.


Decide on other issues that are important to you, such as:

  • Items of personal property you want included with the house.
  • Warranty, inspections, repairs or other home enhancements by the seller.
  • Closing date and possession.


I will present your offer

  • The seller will have three choices: accept your offer as it is presented; reject it
    completely; or propose adjustments to your offer (counter offer).
  • If there is a counter offer, you can choose whether to accept it, reject it or counter it.


Once you have reached agreement with the seller, you will have a firm contract to
purchase the home.

FREE DOWNLOAD BUYER PACKET
By Heather Stoltz 18 Jan, 2024
Welcome to the highly anticipated San Francisco Housing Market Annual Report, where we delve into the latest trends, statistics, and projections shaping the vibrant real estate landscape of the Bay Area. Join us as we analyze the key factors influencing housing prices, rental market dynamics, and the evolving preferences of homebuyers in one of the most dynamic and sought-after housing markets in the country. This comprehensive report offers valuable insights for homeowners, investors, real estate professionals, and anyone with a keen interest in understanding the ever-changing dynamics of the San Francisco housing market.
a large house with two garages and a driveway in front of it .
By Heather Stoltz 18 Jan, 2024
Demystifying the BRRRR Strategy: A Guide for Property Investors The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method is an effective real estate investment strategy that could yield high returns if properly implemented. By carefully following each step – buying at a reasonable price, rehabilitating to increase value, renting for consistent income, refinancing to recover capital, and repeating the process – you can exponentially grow your real estate portfolio. With the right knowledge, resources, and patience, the BRRRR strategy can transform you from a novice investor into a successful real estate mogul. This article from realtor Heather Stoltz will provide insightful advice for budding investors aiming to adopt the BRRRR approach. Forming Your Business as an LLC Setting up your real estate business as a Limited Liability Company (LLC) is crucial for safeguarding your personal assets. An LLC separates your business liabilities from your personal assets, thus providing a safety net in case of legal disputes or financial setbacks. Additionally, operating as an LLC can offer tax advantages, making it a smart business decision for real estate investors. If you’re curious where to begin, you can start your own LLC in California with ZenBusiness , an online formation company that’s far cheaper than a lawyer but can still make sure your paperwork is filed quickly and accurately. Conducting Neighborhood Research Before committing to a property, thorough research on the target neighborhood is essential. Factors such as crime rate, school district quality, and proximity to amenities can significantly affect property value and rental demand. By understanding these dynamics, you can identify profitable investment opportunities and make informed decisions about where to buy. Smart Home Features Incorporating a smart thermostat into the home you're flipping can yield numerous benefits, making it an attractive feature for potential buyers. Smart thermostats are celebrated for their energy efficiency and cost savings. They allow homeowners to track their energy usage and create heating or cooling schedules, optimizing comfort while minimizing waste. If any installation or operational issues arise, there are plenty of online resources available for troubleshooting help. Document Organization Keeping all your documents organized is crucial for smooth operations. Consider digitizing your documents and converting them into PDFs for easy access and reference. This includes property deeds, contracts, receipts, insurance policies, and tenant records. Proper document management not only simplifies your business operations but also prepares you for potential audits or legal disputes. Sticking to Budget Budget discipline is key to maintaining a high return on investment (ROI). Unforeseen expenses are common in real estate, making it easy to exceed your budget if not careful. By diligently tracking your expenses and sticking to your budget, you can control costs and maximize your profits. Understanding the Numbers Numbers don't lie, and in real estate, they tell you where your money is best spent. Understanding key metrics such as cash flow , capitalization rate, cash-on-cash return, and return on investment can guide your investment decisions. Familiarize yourself with these metrics to accurately assess potential deals and determine their profitability. Improve the Kitchen When flipping a house, making strategic kitchen improvements can significantly increase the property's value and appeal. One such upgrade is adding a range hood . Not only does a range hood enhance the overall aesthetic of the kitchen, but it also improves air quality by removing excess heat, steam, and cooking odors. This functional feature can make a big difference in the kitchen's usability and comfort, making it more attractive to potential buyers. Being Realistic While optimism is good, realism is better in real estate investing . It's easy to underestimate the time, cost, and effort required in the BRRRR strategy. Being realistic about your capabilities and resources prevents you from overstretching and helps you manage your expectations. Reading Listings to Set the Right Rental Price Before setting your rental price, analyze online rental listings to understand how other landlords are pricing their properties. This market research allows you to competitively price your property, ensuring it's attractive to potential tenants while still generating substantial income. Implementing the BRRRR strategy requires careful planning, diligent management, and strategic decision-making. By forming your business as an LLC, conducting thorough research, crafting a detailed plan, sticking to your budget, being realistic, and setting the right rental price, you're well on your way to achieving success in your real estate investment journey. Remember, every journey begins with a single step, so take that step today. Whether you’re looking to buy or sell real estate, Heather Stoltz is here to help! Call 415-505-9581. Image via Pexels
By Heather Stoltz 30 Nov, 2023
Excellent rehab opportunity in prime Excelsior location. This much loved home has been in the same family since 1978. Perfect opportunity to expand and remodel a classic San Francisco home. Living room with fireplace, 2 beds/1 bath up. Deck off kitchen at back of property opens up possibilities for those with vision. Downstairs is a very deep 2 car garage with high ceilings and a bonus room. 3rd car can park in driveway. Additional side access and private backyard are other perks of this well located Excelsior home! Excellent FIXER opportunity! Contractor special! 
By Heather Stoltz 30 Nov, 2023
Excellent top floor interior condo! Two bed/1 bath plus an Office Loft! Nicely updated, this top floor condo is a well laid out unit. Butcher block counters, subway tiles and wood like vinyl flooring brings a nice modern touch to the kitchen. The bathroom has also been updated with additional storage cabinet, newer vanity, subway tiles and floors. With nice natural light, pergo style floors throughout, in unit washer/dryer and one car parking this is a great place to call home! Very centrally located one can access all the best of San Francisco quickly and easily from this location. Freeway access is only a few blocks away and public transportation is also nearby. Regular sale however The City and County of San Francisco holds the right of first refusal. City Second Loan Program is available for qualified buyers on a first come, first served basis. Visit for application & program info.
By Heather Stoltz 30 Nov, 2023
Have you been thinking about buying or selling? Have you inherited your family property or are starting to have to be the caregiver for your aging parents and are trying to make it all work? I know it can be quite the juggle. Have the finances all been strategically planned for yourself and your family’s future? Or are you realizing now, as you are caring for those aging parents, things need a bit of straightening up and organizing? Do you want to buy investment properties or do you need to know how to best exit from an investment property with as little tax liability as possible? Or maybe you just want stability in your housing cost and want to buy your self a home? Are you at a loss as to where to start or what to do in order to be able to sell for the highest price or buy for the lowest price? In today’s day and age we are all so reliant on technology. Most of our questions we think can be answered by a quick push of a button, a search of the internet or talking to a handful of friends who may have done this before. But when dealing with the largest asset most of us will ever own you need to know you have fully educated yourself on everything. There are so many questions when it comes to real estate and you want to know you have asked them all, even the ones you didn’t know to ask. You need to know the team you hire to protect your assets, to negotiate for the highest or the lowest price possible is 100% committed to your goals and has time proven experience to guide you down the right path. You need to know the person you are going to work with is experienced and trustworthy and will always put you first no matter what. With all the technology in the world I firmly believe we as humans need human contact even more today, especially when making huge life decisions like real estate. No one wants a BOT to dictate how to negotiate and at what price when it comes to your bottom line dollar. A BOT can’t understand the finer details of a transaction. A BOT doesn’t understand construction, dryrot or termite damage or how to sell the potential in your home’s dreary basement. And a BOT can’t dictate how valuable that perfect view may be for your peace of mind at the end of a long day. You need a human for these things. I would like to invite you out to sit down with me one on one in person. I’ll buy the coffee and we will discuss those big life goals. I’ll explain how we can help you achieve those goals, the tricks that we have and the experience and connections that you need on your side. My team and I have grown larger and we service multiple San Francisco Bay Area Counties and multiple property types in both residential and commercial aspects of real estate. New construction, fixers, businesses and for personal use, we do it all. So if you are looking for a warehouse to open the next best business or a multi-plex apartment building for income or the best single family home or condo you can afford in the best location to suit your needs, reach out and let’s schedule time for a bit of human connection! In person we will come up with a plan to help you achieve your goals and explain how we utilize our skills to get you there! Coffee is on me! Call, email or message today for an appointment! 
By Heather Stoltz 30 Nov, 2023
When Breanna Reish decided to buy a home, she didn’t have a lot of extra cash on hand so she looked at foreclosures. She found an older home that had been virtually stripped to the bone, but that didn’t deter her. “You name it, (the previous owners) took it,” says Reish, owner and financial planner of Wealth of Confidence in Riverside, California, who bought her home in 2009. “We were left with a shell of a home that needed a ton of work, but we were able to lower the asking price down $27,000 and the bank also put in $18,000 worth of repairs in order for us to qualify for a loan.” Reish wanted to do most of the work herself, but some of the projects (like new hardwood floors) were hired out to professionals. Although it took extra time and sweat equity, Reish says she’s happy with her fixer upper. “We paid so little compared to what we would pay to live anywhere else,” she says, adding that the home has since appreciated in value — an added bonus. Buying and renovating an existing, older home that needs substantial work isn’t for the faint of heart. A fixer upper can come with a host of obstacles, both financial and logistical, but the rewards can outweigh those challenges. Here are some considerations and tips for buying a fixer upper so you know what to expect. GET INTO THE RIGHT MINDSET When figuring out how to buy a fixer upper, it’s crucial that you have a plan going into it. It can take a considerable amount of time and money to renovate a home, which could extend your timeline and blow up your budget if you’re not careful. Donovan Reynolds, a licensed real estate agent with Coldwell Banker in Atlanta, suggests budgeting an extra 20 percent into your homebuying budget for a fixer upper, just in case. Mina Starsiak Hawk, half of the mother-daughter duo on HGTV’s home renovation show, Good Bones, agrees. “Even in the best-case scenarios there can be factors out of your control, like delays in city permits or repairs that come to a halt because of weather conditions,” Hawk says. “So when looking at fixer uppers, approach it like there will be problems down the line.” If you plan to do many of the repairs and renovations yourself, you still might need to hire a professional at some point. There may be projects that are beyond your skill set, like electrical and plumbing work, so you’ll want to incorporate that into your budget as well. EXPECT YOUR LIFE TO BE DISRUPTED Aside from the timeline and budget, consider your lifestyle. Do you intend to live in the home while it’s being renovated, or do you want something that’s move-in ready? If you work from home or have young children, for example, living in a home that’s under construction for several months might be a deal-breaker. “Like the saying goes, the true test of any relationship is if you can live in a renovation together because there are lots of things to consider like your usual habits and standards of living,” says Karen E. Laine, Hawk’s mother and co-host on their HGTV show. “Think carefully about whether you can live without things like a bathroom or a fully functioning kitchen when you’re fixing up your home.” If living through the hum of chainsaws and bangs of hammers isn’t appealing, you can spread out the remodeling projects over time to minimize the disruption. FOCUS ON LOCATION Location, location, location. It’s the oft-repeated mantra in real estate, and for good reason. You can always fix up a home, but you can’t change its location. An ideal fixer upper is in a desirable neighborhood that you love. Same goes for future buyers if and when you sell. You might be able to score a great deal on an older, dilapidated home, but if you end up hating your surroundings or property values are struggling in the area, you might be left with buyer’s remorse. “Seek the help of an experienced (real estate agent) to help you understand the neighborhood,” Reynolds says. Putting the work into a shabbier home in a sought-after neighborhood, he adds, means you get to “live in an area you might otherwise not have been able to afford.” When shopping for a fixer-upper home, look at neighborhood amenities, such as local schools, shopping, dining, parks and crime statistics. Are the surrounding homes well maintained? Is the fixer upper located on a busy intersection or close to places like a railway or a landfill? Reynolds also suggests paying attention to whether the renovations you plan on making will make sense for the area. “Pay attention to the after renovation value (ARV) so you can estimate whether or not these improvements will give you a return on your investment,” he says. In other words, your home may increase in value, but you may not be able to recoup what you put into repairs. An experienced real estate agent can help you determine the ARV by comparing properties in the local area to estimate the value after the repairs you want to make. GET THE RIGHT TYPE OF INSPECTION Laine, Reynolds and Hawk all agree that when you’re ready to put in an offer, it’s a wise move to bring along a trusted home inspector or contractor. That’s because these professionals may be able to point out potential flaws or other critical issues that could present problems later on. “You want to have someone look at things like the overall structure of the home, crawlspaces, insulation and especially the foundation,” Hawk says. “If the property doesn’t have a good foundation, it may not be the right one for you because it can end up being a money pit.” It’s also important to not let cosmetic flaws deter you from a home you love. Things like broken windows, paint, fixtures and trim, to name a few, can be easily fixed. Instead, focus on the major components of a home so you can anticipate how much you might need to budget and how long it might take to make repairs, such as: Electrical, plumbing and sewer systems Air conditioning and heating (HVAC) systems Roofing Driveway, decks or steps Extensive work needed on bathrooms and kitchen Foundation Before closing on a fixer upper, consider a specialized home inspection for a detailed report on the house. Here’s what to consider getting done, in addition to a standard home inspection: Pest inspection: You never know if a home is damaged from pests like termites, ants or beetles, as it can cause major headaches down the line. Sewer lines: Getting a sewer line scope and septic tank inspection can help you figure out if they’re in need of repair or replacement, especially on older properties. Thermal imaging: A home inspector uses infrared light technology to identify potential issues that may not be apparent to the naked eye. This includes heat loss and air leakage, insufficient insulation, moisture damage and abnormal electrical components. There are additional services your home inspector might offer, so speak with a reputable professional to see if you may need more specialized inspections. FIND THE RIGHT FINANCING Remodeling a fixer upper can get pricey, so it’s critical you have the right financing lined up. Some home renovation mortgages even allow you to roll remodeling costs into your loan amount with a single mortgage. Here’s an overview of some of those programs: Fannie Mae’s HomeStyle Loan The HomeStyle Renovation loan is a conventional mortgage that allows borrowers to either buy a place that needs repairs or refinance their existing home loan to pay for improvements. A certified contractor must prepare and submit a cost estimate and detailed scope of work. The money for the projects goes into a separate escrow account that’s used to pay contractors directly, so you won’t have direct access to the money. Freddie Mac’s CHOICERenovation Mortgage This renovation mortgage, guaranteed by Freddie Mac, is another conventional loan option to roll remodeling costs into a single-close mortgage. The loan can also be used to renovate or repair a home that’s been damaged by a natural disaster or to prevent future damage from a disaster. VA renovation loan The U.S. Department of Veterans of Affairs guarantees loans for military borrowers and their spouses. Borrowers can use a VA loan to purchase a home in need of repairs and improvements, and combine the cost of those projects into their loan amount. Borrowers must use a VA-approved contractor, and lenders may charge a construction fee. FHA 203(k) loans The Federal Housing Administration Section 203(k) renovation loan helps homebuyers purchase a home — and renovate it — with one mortgage. FHA loans also have lower credit score and down payment requirements than conventional mortgages. Homeowners can also use the FHA 203(k) loan program to refinance their existing loan and add the cost of renovation projects into the new one. Other options to fund home renovations include taking out a home equity loan or line of credit or a personal loan. An experienced mortgage lender can help you narrow down your choices and decide on the best type of financing for your needs and real estate goals. BOTTOM LINE There is no such thing as the perfect fixer upper. It’s a matter of a fixer upper that’s perfect for you. Each property is different and the choice depends on your budget, timeline and lifestyle preferences. Be realistic about whether you want to take on a major project or one that requires a few fixes here and there before taking the leap. Written by Sarah Li Cain on AUGUST 21, 2019 on BankRate.com .
By Heather Stoltz 30 Nov, 2023
You’ve said goodbye to the dog days of summer and are enjoying the cooler fall weather and all the benefits that autumn brings. While it’s tantalizing to put off home maintenance chores, it’s best to be responsible and make sure everything in your home is in tip-top shape so the winter chill doesn’t catch you with a malfunctioning home system.  Now is a good time to verify all your home systems are operating well, from the heating system to the electrical system to the plumbing system. Read the following list of must-do maintenance chores to do to keep your home snug and cozy in the months ahead, as well as safe from an expensive repair service visit. Clean Up Outside Any San Franciscan knows that there will be plenty of temperate, beautiful days that can be enjoyed outside even in the dead of winter — sometimes, winter days are warmer than summer days! Make sure your outdoor areas are spruced up not only so you can spend time in the great outdoors in the fall and winter, but also to keep your home and family’s health in good order. Remove fallen leaves and other natural debris from your yard, deck and garage to prevent unwanted pests from making themselves comfortable. Start by raking everything into piles, and then vacuuming them up with a backpack vacuum cleaner; these are a better option than burning debris, which presents both fire and health hazards , especially in dry conditions. These tools also often have HEPA filters to help reduce allergens, and once everything is vacuumed up, you can use the organic matter as a natural mulch. Now is also a good time to paint and seal your deck before the winter rain falls. Sealing outdoor wood will help it last longer by preventing rot and mold growth. Clean Your Roof Gutters Your roof’s downspouts and gutters are liable to have accumulated a lot of clogging debris over the warmer months of the year. Take the time to inspect and clean your roof’s drainage system so that rain is channeled away from your home’s foundational walls and exterior, keeping the overall structure of your home intact. Check for corrosion and rust, and install mesh guards to keep any leaf matter or debris from blocking parts of your home’s drainage system. Test Your Smoke and CO Detectors Check and test that your smoke and carbon monoxide detectors are working properly by following the manufacturer’s manual of instructions. It’s a good policy to change the batteries of the ceiling detectors once every new season. For added security, keep a fire extinguisher in the garage and kitchen, as well as in designated spaces on other floors of the house. Replace Air Filters Check the quality of air circulation in your home, and remove any debris blocking proper air flow. Change your air filters and test your home humidifiers. If your air conditioning unit directly faces the outside, think about covering it in the winter. A Final Thought A week of routine home maintenance chores will save you plenty of repair costs in the future. Even brand new homes can spring a roof leak or suffer a failed gas heater when owners don’t regularly perform home maintenance chores throughout the year. So, be proactive in getting your maintenance chores done so that you can enjoy a warm, well-insulated home in the cold months ahead.
By Heather Stoltz 30 Nov, 2023
Last time it was about Love, and this time it’s about Money. There are so many ways to suck at money, and by suck, I mean you are so bad at this particular skill, it regularly gets in the way of everything else. A friend of mine was looking for work and was so daunted, actually haunted, by the idea of how much she needed to earn, it almost paralyzed her efforts. It felt impossible for her to earn enough. She’d need to be someone else to survive: Superwoman.
By Chariza Castro 30 Nov, 2023
Using A CMA To Price
By Heather Stoltz 30 Nov, 2023
Our Approach To Selling Your Home
More Posts
Share by: