Buying real estate anywhere can be intimidating, and La Quinta real estate is no different. Buyers can often feel nervous, mostly because they are unsure of what comes next.
If you are thinking of purchasing a property in La Quinta, let this serve as a sort of roadmap for your transaction. Most transactions go smoothly, and if you know what to expect, the bumps will feel a little less bumpy!
Pre-Approval: The first step to buying La Quinta homes for sale is becoming pre-approved. Contact a mortgage lender you trust, or get in touch with your REALTOR® and they will be able to refer you to a mortgage professional that they have observed doing a good job for their clients. Even though you may not know exactly what you plan on buying yet, this is the best place to start. You would rather know what you can afford upfront and base your search accordingly versus falling in love with a property only to learn later it is out of your range.
Next is what most people consider the fun part…Searching: Once you have been pre-approved, it is time to touch base with your agent and let them know what type of property you are interested in purchasing. The more details you can provide, the better. Depending on your timeline, sometimes this phase takes a couple days, and sometimes a couple months.
Submitting an offer: You have found ‘the one’. Now it is time to put together an offer. Your agent will go over all the paperwork with you and present your offer to the seller’s side with a deadline for their response, usually 1-3 days. From here, the seller can either accept your offer as it is (very rare), or propose a counter-offer. Along with your offer, you will also submit an earnest money deposit (usually 3% in California) to show good faith.
Negotiation: Once you hear back from the seller, the negotiation begins. Keep in mind, an offer is made up of several different terms, not just price. For example, one party may consider the closing date a higher priority than the price, so they may be willing to give up a bit on price in order to adhere to their schedule. When you consider all the different pieces of an offer, it is usually pretty easy to come up with a win-win, or at least a solution that both parties can live with.
Escrow: Once all terms are negotiated to everyone’s satisfaction, you officially have an executed contract. It is at this point when the escrow account is opened and a neutral 3rd party holds monies and paperwork.
Contingency Period: Typically in the contract, a contingency period is stipulated for the buyer to complete several things:
- Appraisal: Your lender will require an appraisal. The amount needs to be at or above the contract sales price. If it is below, usually additional monies are required to be put down if the seller can agree to the lower price.
- Home and Termite Inspections: Your REALTOR® will suggest that you have the home inspected to ensure there are no major problems. Any items found in the inspection can be negotiated with the seller.
- Homeowner’s Association Documents: Buyers are entitled to receive a copy of the codes, covenants, and restrictions, as well as the association’s financials and meeting notes.
- Loan Approval: Your contract will be written based on your ability to obtain financing. If for some reason you learn that is not possible, you will be released from the contract.
- Seller Statutory Documents: These are documents required in the state of California wherein sellers must disclose any known material facts regarding the property. Additionally, in California, the seller must disclose if there has been a death on the property in the last 3 years.
During the contingency period, you have the unrestricted right to terminate the contract based on any of the above, or even if you just changed your mind. Your earnest money will be refunded if you cancel the contract for any of these reasons.
Either the contingencies will be removed and the transaction will proceed, or the contract will be cancelled. If you are moving forward, the lender, your agent, and the escrow officer will work together to ensure all documents are in order for your purchase. Your earnest money deposit is applied toward the purchase of the home. Once all title work and lender documents are complete, you will sign your name a zillion times and then the home is yours!