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Buying real estate in Encinitas is different. So what else is new. Aren't all new homes in Encinitas California different? Well, let's stay away from all that for the time being and only talk about the process of buying Encinitas homes. First of all, we don't use attorneys to consummate Real Estate Encinitas sales, which is common practice on the East Coast. We do use something called escrow.
After you've found the home for sale in Encinitas and begun negotiations, you'll begin hearing about "opening escrow" and "closing escrow". We'll talk more about escrow further on. Also, forget about having a final closing meeting. Very rarely do the buyers and sellers even meet each other during the real estate transaction.
Another thing to keep in mind, especially during this sellers' market in Encinitas, is to get your loan in place before you go shopping for a home for sale in San Diego County.
In Encinitas anyone who offers to buy, sell, or lease Real Estate in Encinitas for compensation must be licensed. There are two types of licenses given by California Department of Real Estate: Brokers and Salespeople. Any broker or salesperson can also be referred to as a Realtor. It is important to remember that only Brokers can receive compensation for the sale or lease of real property. Therefore, every Realtor must work for a broker. Brokers can also work for another broker which is known as a "Associate Broker." When doing so, they function as Realtor and not as the Broker of Record. The Broker of Record is the person who assumes all responsibility for supervising the sales agents and real estate transactions.
Agency is one of the more arcane aspects of real estate law in California. It includes sub-agency, dual-agency and buyer's agency. Unless you have signed a contract delineating your agency relationship, the agent you are working with may not owe his primary fiduciary responsibility to you. "Agency" is a relationship in which the agent is given the authority to act on behalf of another person (principal). In real estate transactions, usually the seller is the principal, and the broker is the agent. In an agency relationship, the principal delegates to the agent the right to act on his or her behalf in business transactions and to exercise some discretion while so acting. The agent has a fiduciary relationship with the principal and owes to that principal the duties of Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Care and Diligence, and Accounting.
This is the first task your Realtor will perform for you, and it is probably the least important. However, before driving all over San Diego County, your Realtor will conduct an interview to determine if you are ready, willing and able to buy Encinitas homes. Don't take this personally, the seller wants to know. Plus, the more ready, willing and able you are to buy a home in San Diego County, the better price you will get.
It's funny how that works sometimes. We've shown people the perfect home at the best price and they decided to wait. One day, one week, it didn't matter. When they finally decided to buy, that house is invariably gone. A home in Encinitas usually does stay to long on the market if it is priced right and marketed appropriately.
Next, the Realtor will inquire as to the details of the home you are looking to buy. This way the agent can bring you directly to the most suitable communities and Encinitas homes on the market.
If the first thing a real estate agent wants to do is pop you in his car, go find another Realtor. Driving willy-nilly around the County is an exhausting experience. No experienced Realtor drives people around without a qualifying interview first. You do want an experienced real estate agent, don't you?
Also, a good Realtor will have you begin the loan process immediately. We're not talking about getting pre-qualified, we're talking about getting approved for a loan. This will put you in the strongest possible negotiating position next to buying with all your own cash.
Here is where your Realtor really begins earning their keep. After you have found the Encinitas home you want to buy, it's time to make an offer which are always in writing. There's a saying in San Diego real estate that an offer is only as good as the paper it's written on. The paper used in Real Estate Encinitas transactions is called a residential purchase contract. All details of the offer are entered on this form, including the description of the property, the price offered, financing terms, duration of the offer, rights of the buyer to inspect the property, which party will pay which fees, and escrow time length, etc.
Your Realtor will assist you in setting an opening offer price by providing a list of Encinitas home for sale, sold recently similar to the one you are interested in buying. Along with your offer, it is customary to provide a "good faith" deposit check, typically 3% of the offered price. This is referred to as earnest money.
Your agent will then present the offer to the sellers and their agent.
There are two parts to a Real Estate Encinitas offer: the price and the terms. Usually you will offer less than the asking price. Since Real Estate Encinitas is a seller's market, meaning there are many buyers vying for the same property, you may want to offer something close to the asking price if the comps support it. In any case, there will more often than not be a counter-offer.
The sellers will counter your offer in writing. The buyer can respond with a written "counter-counter-offer," and the offers can go back and forth until there is final agreement, or until one of the parties will no longer respond.
Once the offer is agreed to by all parties concerned, the Realtor will take the final purchase agreement, all counter offers, and the deposit check and deposit them "in escrow." Escrow will then be deemed open.
The purpose of an escrow is to enable a buyer purchasing a Encinitas home for sale and the home seller to deal with each other without risk. Before title to the property can be transferred to the new owner, the buyer must deposit into escrow all monies necessary to pay for the home. This is most commonly done when the buyer obtains a loan. Then, the seller must be paid, the seller's old mortgage paid off, and any other liens on the property must be paid off. All responsibility for handling funds and documents is delegated to the escrow holder, a neutral third party, which is usually a title insurance company and/or escrow company.
Your Title insurance officer can answer many of the frequently asked questions about title insurance, preliminary reports, and alternative ways of holding title to property in San Diego County. In a simple transaction, the buyer delivers the agreed upon funds to the escrow holder. The buyer also instructs the escrow holder to deliver to the seller the stated sum only after all conditions and contingencies have been met, and title is vested in the buyer. Concurrently, the seller deposits his deed and other documents with the escrow holder, authorizing their delivery when the buyer has deposited the contracted purchase price. The contracting parties deposit funds and documents with the escrow holder, for delivery to the respective parties upon performance of all conditions of the agreement.
Most contracts provide that the Encinitas buyer may, at his own expense, have the Encinitas home inspected by professionals. Typical inspections include pest (termite) inspection, contractor inspection (includes electrical, plumbing, heating systems), roof inspection, swimming pool inspection, foundation and soil inspection.
These inspections may reveal defects about the home, which may not be evident to the buyer, and were not disclosed in the seller's disclosure statement. Depending upon the terms of the purchase contract, the buyer may request the seller to either fix the defect, or provide funds so that the buyer can correct the defect after close of escrow. However, the Seller is not obligated to make any requested repairs unless written into the contract. However, this gives the buyers the ability to either finalize the contract or back out and look for a more suitable property.
Your Realtor can assist you in choosing competent inspectors and will arrange their appointments and be present while the inspections are being conducted.
Most Encinitas Home inspections for San Diego real estate are mandatory by the lending company. Most lending companies require, at least, a termite, basic home inspection, and geology disclosure, before they will provide a mortgage on the property.
In Encinitas the title of the property is searched by a title company and a preliminary report is issued on the condition of the title, for the buyer's approval. The Title report would include such information as present ownership, legal description of the property, any existing liens or unpaid taxes, any easements, and other covenants, conditions, or restrictions. A policy of title insurance will usually be issued at close of escrow. A title insurance policy insures the buyer's interest in his purchase, and the priority and validity of any loan. It is a contract to indemnify against loss through defects in the title. Any title issues that arise on your Encinitas home will be protected by your title insurance.
The buyer is responsible for applying for their Encinitas home loan. When the buyer's loan is approved and documents are ready for signature, the lender delivers the documents to the escrow holder. The buyer signs all loan documents ahead of the closing date, and the seller signs the deed a few days before closing. One or two days before closing the buyer delivers the remainder of the down payment to the escrow holder. To avoid delaying the closing, the buyer should transfer his down payment funds to a local bank well ahead of close of escrow.
After both the buyer and seller have complied with all agreed-upon terms in the contract, the escrow is "closed," and the deed is recorded with the County Recorder. The escrow company notifies the Realtor that the title is recorded and on that day the property belongs to the buyer. There is no need for a final meeting of the parties, since all documents had been signed prior to the close of escrow, and have been delivered to the escrow holder. Sometimes the seller needs to remain in the property after the close of escrow; this holding over or "lease back" is handled by a separate agreement, prepared before the close of escrow. After the close of escrow the parties will be given a settlement statement, showing the charges and credits for each party.
The
above description covers the customary steps in buying and selling a home in
San Diego County. Most Real Estate Encinitas transactions are completed without
the assistance of an attorney. However, buyers and sellers who have legal or
tax questions are urged to obtain advice from their attorney or tax
professional. While the above material is summarized from sources deemed
reliable, it is not guaranteed to apply to all Encinitas California real estate
transactions, since other conditions may apply, and each real estate
transaction has its own unique characteristics. If you have further questions
or would like more information on how Noah Game and his team can sell your
Encinitas home, please call or email: Contact info/SPAN>
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