What Goes Into a California Home Offer?

The Proposed Price

The offer states the amount the buyer is willing to pay. The buyer should consider market information, property condition, competition, financing and personal limits.

Financing

The offer may state whether the purchase will involve:

• Conventional financing
• Government-backed financing
• Other financing
• Cash
• A combination of financing and cash

The seller may request evidence of preapproval or proof of funds.

Earnest Money

The offer identifies the proposed deposit, where it will be held and when it must be delivered. The deposit may become vulnerable if the buyer fails to perform. Buyers should understand their protections and deadlines.

Contingencies

Potential contingencies include:

• Property investigations
• Loan approval
• Appraisal
• Title review
• HOA document review
• Insurance
• Sale of another property
• Other negotiated conditions

The presence and length of these protections can influence how the seller views an offer.

Seller Credits

A buyer may request a seller credit toward eligible closing expenses, subject to the contract, lender rules, appraisal and available costs.

Included and Excluded Items

The agreement should identify what remains with the property. Appliances, fixtures, security equipment, smart-home devices, solar equipment and outdoor items should not be left to assumptions.

Closing and Possession

The proposed closing date and the time when the buyer receives possession may be different. If the seller needs to remain after closing, the parties should address that arrangement clearly.