106 - Making an Offer

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