How to Make an Offer on a House in California

{original post 3/21/2024}

How to Make an Offer on a House in California

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How to Buy a House Part 3: Getting Your Offer Accepted

Are you wondering how to make an offer on a house in the state of California? We know how exciting yet compromising and scary it can be. 

However, buying your dream house or your first house doesn’t need to be! A house offer is not a final decision; it’s just a step in your house owner’s journey, and we will tell you how to navigate this process. 

In this episode of Happy House Hacking, your hosts, Owen and Camille Schwaegerle, will get us through the step by-step on how to get our house offer accepted and moving forward. 

How to Make an Offer on a House: Know the Market First

The first step to this journey is to truly understand the terrain you're exploring, which means getting to know your market.

Real estate markets are generally split into two main types: seller's markets and buyer's markets. 

In a seller's market, there's less than six months' worth of housing inventory available. On the other hand, a buyer's market has more than six months of housing inventory available. 

Each state can drastically vary in laws and markets, but here in California, we have a predominantly seller's market. 

As a buyer, this means you'll need to think strategically to make the most compelling offer.

Why Are They Selling?

Here's an insider tip: understand why the sellers are selling. What's driving their decision to put their home in the market? 

Uncovering their motivation can help you craft a win-win offer that resonates with the seller and increases the chances of your offer being accepted.

The Offer is Just the First Step

Think of making an offer on a house like asking someone out on a first date. It's your chance to get to know the house better, as well as understand the motivations of the current owners.

Many prospective buyers hesitate at this stage, worried that making an offer is equivalent to signing the final house or putting the money right away! But don’t be afraid, this is just an offer. 

Just because you're expressing interest doesn't mean you've won the house. In fact, it's quite the opposite; it’s likely you will get a few rejections all along the journey, this is just the first step in showing interest. 

The Contract Stage

So, you've made an offer on a house, and it's been accepted. Now, you're under contract to purchase the property. But what does this really mean?

Being under contract is an important milestone, but it's not the finish line. 

Essentially, this stage means the seller has accepted your offer, and you are now the preferred buyer for the property during the contracted period.

During this time, you still have the flexibility to opt out if you find another property that steals your heart. The contract stage keeps your options open, offering you a strategic advantage.

Show Good Faith

Now is the time to show your serious intent by making an earnest money deposit. This small portion of your down payment is a signal of your commitment to the transaction.

Don't worry; this money is protected under the terms of the contract.

Appraisal contingency

An appraiser will visit the property to ensure it's safe, habitable, and worth the price you're paying. 

This is a safeguard to make sure you're making a sound investment.

Loan Contingency

Lastly, the loan contingency is where your lender confirms you're qualified to buy this house. It's the final reassurance that the finances are in place for you to become a homeowner.

Get Ready

Now: this is the real deal. This is the stage where you are ready to buy a house and compromise on the offer you made at the beginning. 

You have roughly one month during this period to assemble all the necessary paperwork and get all the things ready.

Find the Right Team

We said this before, and we say it again: who you work with matters. The people you choose can significantly influence your home-buying experience. 

It's crucial to partner with a proficient real estate team that can effectively guide you through the process right up to getting your offer accepted.

Remember, a good team transforms your journey into a memorable adventure. So, invest time in finding professionals who understand your vision and understand your unique needs.

Choose wisely!

Keep Listening to the Happy House Hacking Podcast

House hacking isn't just about owning a home. It's about building a life of financial freedom and independence.

Make sure to subscribe to the Happy House Hacking Podcast for more tips, tricks, and insider secrets in the world of real estate.