Making an offer? Here is what you'll need

So, you’ve found "the one"—the home that checks all your boxes and feels like it was made just for you. Now comes the exciting (and slightly nerve-wracking) part: making an offer. But before you dive in, there are a few key things you’ll need to have in place to ensure your offer is both competitive and complete. Here's a breakdown of the essentials:

 1. Proof of Funds and or a Pre-Approval Letter

Sellers want to know you’re serious, and nothing says that louder than being financially prepared. If you’re financing your purchase, a pre-approval letter from your lender is non-negotiable. It shows the seller that a lender has reviewed your financials and deemed you capable of securing the loan. For cash buyers, proof of funds—like a bank statement or a letter from your financial institution—will be required.

Pro tip: Don’t confuse pre-qualification with pre-approval. A pre-approval carries much more weight as it’s based on a deeper dive into your finances.

 2. A Strong Initial Deposit (Earnest Money Deposit)

In California, you’ll typically include an earnest money deposit with your offer. This is a good-faith gesture that shows the seller you’re committed to the purchase. While the amount can vary, it’s often around 3% of the purchase price. Keep in mind, this money is applied toward your down payment or closing costs if the deal closes but may be forfeited under certain conditions if you back out. Be prepared to send in your earnest money deposit in 1-2 business days from offer acceptance.

 3. A Thoughtfully Drafted Offer

Your offer isn’t just about the price you’re willing to pay—it’s a complete package. In California, offers are typically written on the Residential Purchase Agreement (RPA) form, which outlines the terms of the deal, including contingencies, timelines, and any additional requests. A great real estate agent will help you craft an offer that’s not only competitive but also tailored to the seller’s priorities. Sometimes it’s not just the highest bid that wins but the cleanest and most appealing terms.

4. Contingencies (or Lack Thereof)

Contingencies are conditions that must be met for the deal to move forward. Common ones include financing (you’ll need to secure your loan), appraisal (the home must appraise for the offer price or higher), and buyer investigations (you can back out if significant issues are discovered). While contingencies protect buyers, in a hot market, removing or shortening them can make your offer more attractive. But proceed cautiously—your agent will guide you on what’s appropriate and will advise you of the risks.

 5. A Personal Touch

Standing out matters! A personal letter to the seller, often called a “love letter,” can add a human element to your offer. Share what you love about the home and why it’s perfect for you. While you’ll want to avoid mentioning specifics that could lead to bias, a heartfelt note can sometimes tip the scales in your favor. (Note: Be sure to discuss this with your agent, as there are legal and ethical considerations to keep in mind.)

6. A Trusted Real Estate Agent

Speaking of your agent, having an experienced professional by your side is worth its weight in gold. They’ll help you navigate the paperwork, strategize on pricing, negotiate effectively, and keep your best interests front and center. In the ever-changing real estate landscape, local market knowledge is everything.

Making an offer on a home is an exhilarating step, but preparation is key. By ensuring you have all the right pieces in place—financial readiness, a strategic offer, and expert guidance—you’ll be well-positioned to move from offer to acceptance with confidence. And when that “Congratulations, your offer has been accepted” call comes through? Trust me, it’ll all be worth it.