Residential Purchase
Agreement (RPA)

Buying or selling a home involves paperwork, and one of the most important documents in the process is the Residential Purchase Agreement (RPA). This is the contract that outlines the details of the home sale, making sure both the buyer and seller are on the same page.​

 

At first glance, this document may seem long and complicated, but don’t worry—we’ll go through it step by step. Our goal is to make it easy to understand, so you feel comfortable and confident about what you’re signing. ​

 

Please note that these documents may not be submitted by the Buyer's Agent in the same order that you see them here on this webpage, but the first document is typically the  "Disclosure Regarding Real Estate Agency Relationship".  You may remember this document from when we signed the Residential LISTING Agreement (RLA).

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You can expand and contract these pull-down boxes to see a description of the document as well as see a sample of the document.

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You can also download all of the documents by using the link at the bottom of this page.

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This page is simply for your education.  It will get you ready to meet with Brian to discuss the offer(s) on your home and it will save us both time.  Of course Brian will be readily available to answer any questions you may have during our meeting.

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Things we are looking for in a purchase agreement other than the purchase price:

• The amount and length of time for the initial deposit, (3% of the purchase price)

• The close of escrow.  This will either be a specific date or a number of days.

• The offer expiration time period (1-3 days)

• The loan terms (if applicable).  A smaller loan (or cash) is preferred

• The percentage and amount of the down payment.  The higher the better, because if the home does not appraise at the purchase price, the buyer will have to come up with the difference between the appraised value and the purchase price.

• The contingency removal time periods.  The shorter amount of time for the buyers to do their due diligence the better. There are three types of contingencies;  Appraisal, Loan and Property condition.

• The “Rent Back” agreement (if applicable).  

• Who pays for what?  Things like a one year home warranty and closing costs.

• Items that are to be included (unattached items) or excluded (attached items)

Preemptive Offers:
In today’s crazy market, some Buyers/Agents who really want your home will place preemptive offers before the offer due date.  Sometimes these are the best offers, because they have to get your attention with a much higher offer to beat out the crowds.  We may consider these offers. 

Counter Offer(s):
If there is something that we don’t like in the offer(s), then we may elect to do a “Counter Offer” or even a “Multiple Counter Offer”.   The counter offer(s) will either clean up the terms of the contract and/or ask for a higher price.  The Buyer can either reject the counter offer, hold steady with their initial offer or increase their offer and/or accept the new terms.

 

Tip: Keep in mind that counter offers sometimes turn the buyers off because they either think that there is a bidding war or they get offended because they already submitted their “highest and best” offer.

 

Selecting the Winning Offer:
The best offer is not necessarily the highest priced offer..  Let me explain.  There are many factors to take into consideration when reviewing offers and selecting the winning offer.  In my opinion, in addition to the sales price we are also selecting the best buyer and the best agent on the other end of the deal.  In addition, we are also looking for desirable “terms” like a free 29-day rent-back so you can stay longer after the close of escrow.  Other desirable terms include not having the seller pay for a 1 year home warranty or the initial deposit being wired to the title company in 1 day or certain fees being waived.

 

The best buyer is someone who has a sense of urgency and a compelling reason to purchase your home.  Maybe their kids go to the local school, they have friends in the neighborhood, they work close by or they sold their home and must move quickly.  
We are also looking for a great Selling Agent who communicates well, follows direction and suggestions, works with a top broker, has experience selling homes and has a win-win attitude.

It’s not easy to select the winning offer, but together we will decide who gets to purchase your home.  Once we get together and decide on the best offer/buyer/Realtor, you will sign the purchase agreement using DocuSign, and I will send it back to the Selling Agent.  We will then change the status on the MLS to “Pending” and we will be off the market.     
Whew!  Take a break, you deserve it..

Offers on the back burner:
We will send out an email to all of the Realtors who’s offer we did NOT accept.  We want to stay in touch with these Realtors and let them down easy.  We will also give them the opportunity to write a “backup” offer.  A backup offer is an offer that is written by the Selling Agent and accepted by the seller to be used in case the first offer backs out.  This is optional and completely up to you.

 

ALL CASH DEAL? Prepare for a quick landing!:
If the offer that we select is an “All Cash” deal, then the close of escrow can be as quick as 7-10 days.  On vacant homes, that usually isn’t a problem.  On occupied homes, we may have to throttle the time frame back a little to allow you time to vacate.
 
 

You can expand and contract these pull-down boxes to see a description of the document as well as see a sample of the documents.

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You can also download all of the documents by using the link at the bottom of this page.

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Remember, our goal is to educate you and reduce your stress.  Just take your time to learn and prepare for our meeting.

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Give me a call if you have any questions, comments, concerns, or requests.  I'm always here for you.