Buying a home
How to Make an Offer on a House in the Sacramento Region
What goes into a California offer, how multiple offers work and what makes yours strong besides price.
What goes into an offer on a house in California?
An offer is a written contract you sign. If the seller signs it too, it binds you both. In California it's usually written on a standard purchase agreement form, and it covers far more than price. Here is what you'll decide:
- Price. What you'll pay, based on recent sales of similar homes, the home's condition and how much interest it has.
- Deposit. The good-faith money you put into escrow after the seller accepts.
- Financing. Your loan type, loan amount and down payment, or proof of funds if you're paying cash.
- Contingencies. The conditions that let you cancel and get your deposit back, such as inspection, appraisal and loan approval, and how many days each one lasts.
- Closing date. How many days from acceptance until the home is yours.
- Credits. Money from the seller toward your closing costs or repairs, if you ask for it.
- Personal property. Items you want included, like the refrigerator, washer and dryer, or a backyard shed that isn't attached.
- Who pays which costs. Escrow, title, transfer tax and some reports can be split different ways. See our guide to transfer tax by county.
Every one of those terms can be negotiated. Price is only one line on the page.
This guide is general information, not legal advice. Your agent explains the form, and a real estate attorney can review anything you're unsure about.
How much earnest money do you put down, and when is it due?
The CFPB describes earnest money (checked October 22, 2026) as a deposit you make to show good faith when you sign a purchase contract. It's held by a third party, such as an escrow or title company, not handed to the seller. If you close, it goes toward your down payment or closing costs.
The amount is a negotiated term. There's no amount set by law. A larger deposit can make a seller more confident. It also puts more of your money at risk if you back out for a reason the contract doesn't allow.
When it's due is written in the contract. Many California forms give you a short window after acceptance, measured in days, to wire or deliver it to escrow. Read that line closely. Missing it can give the seller grounds to act.
California also limits how much a seller can keep as liquidated damages on a home of one to four units that you plan to live in. Under California Civil Code section 1675 (checked October 22, 2026), an amount up to 3% of the purchase price is presumed valid unless you show it's unreasonable. Anything above 3% is invalid unless the seller proves it's reasonable. The liquidated damages clause only applies if both sides agree to it in the contract. Ask your agent to walk you through it before you sign.
How do you show a seller your financing is solid?
A seller wants to know your loan will close. Three things help:
- A full pre-approval. A person has reviewed your income, assets and credit, not just a quick online form. Our page on getting pre-approved explains the difference.
- A letter matched to the home. The loan amount, down payment and closing date line up with this offer.
- A loan officer the listing agent can call. A quick conversation can settle a seller's doubts.
If you're paying cash, include proof of funds. If part of your down payment is a gift, have the paper trail started. Our down payment and gift funds page covers what lenders ask for.
Maggie is a mortgage broker as well as a real estate broker, so the loan and the offer can come from one team. You're also free to use any lender you choose.
What happens when there are multiple offers?
When several buyers want the same home, the listing agent may ask for "highest and best" offers by a deadline. The seller then compares them side by side. Sometimes the seller counters one buyer. Sometimes the seller counters several at once, and the first to sign back may win.
Before you write, ask the listing agent:
- Is there an offer deadline, and how will offers be reviewed?
- What closing date does the seller want?
- Does the seller need time after closing to move? See our guide to rent-backs.
- Are inspection reports or disclosures already available to review?
Answers to those questions often tell you what matters to this seller besides the number.
What is an escalation clause, and should you use one?
An escalation clause says you'll pay a set amount more than any competing offer, up to a cap you choose. For example, in words: you offer one price, agree to beat any higher offer by a fixed amount, and stop at your maximum.
Things to know before you use one:
- Some sellers won't accept them and simply ask for your highest price.
- It shows your maximum, so the seller may counter you at your cap.
- It should say what proof you need of the competing offer.
- Your loan still has to work at the higher price, and the appraisal may not keep up.
Often a clean offer at the price you'd really pay is simpler. We talk it through with your numbers before you decide.
What is an appraisal gap, and how do you plan for it?
Your lender orders an appraisal to check the home's value. If the appraisal comes in below your price, the lender bases the loan on the lower number. The difference is the appraisal gap.
Here's how it works in words. Say you offer a price with 20% down. The appraisal comes in lower. Your loan amount drops with it, so you'd need more cash to keep the same price. Your choices are usually to bring the extra cash, renegotiate the price, meet in the middle, or cancel if your appraisal contingency is still in place.
Some buyers offer to cover part of a gap to make their offer stronger. Only do that with cash you actually have after closing costs and a cushion. Our guide to inspections and contingencies explains how the appraisal contingency protects you.
Should you write a letter to the seller?
Be careful. Letters that talk about your family, your faith, where you're from or other personal details can create fair housing problems for the seller and the agents. California's Civil Rights Department (checked October 22, 2026) lists protected characteristics in housing that include race, color, ancestry, national origin, religion, disability, sex, sexual orientation, gender identity, marital status, familial status, source of income, military or veteran status and age.
Some listing agents won't pass buyer letters to their sellers for this reason. If you want to say something, keep it to the terms: your timeline, your flexibility and how ready your financing is. That's what helps a seller decide, and it keeps everyone on solid ground.
What makes an offer strong besides price?
Sellers weigh certainty and convenience along with money. Ways to make your offer stronger without paying more:
- Shorter contingency periods you can actually meet, set with your inspector and lender ahead of time.
- A closing date that fits the seller, or a rent-back if they need time to move.
- A solid deposit, delivered on time.
- A full pre-approval and a lender who answers the phone.
- Fewer requests, such as not asking for appliances or credits you can live without.
- A complete, clean package, with disclosures reviewed and every page initialed.
Don't cut protections you truly need. Waiving an inspection on an older home to win can cost far more than a few thousand dollars on price. We show you the tradeoffs before you sign.
How do you get started on an offer?
Start with financing, then the homes. Once your approval is in place, Maggie B. Hopkins and Rachel Dee Minyard can pull recent sales for any home you like, explain the seller's disclosures and write terms that fit your plans.
Send us a note or call Maggie's cell at (916) 549-3131. You can also download the free buyer guide and read how buying works from search to keys.
Frequently Asked Questions
Is there a standard earnest money amount in California?
No. The deposit is a negotiated term in the contract. A larger deposit can reassure a seller but puts more of your money at risk if you cancel for a reason the contract doesn't allow.
Can a seller keep my whole deposit if I back out?
It depends on your contract and your contingencies. On a one-to-four unit home you'll live in, California Civil Code section 1675 presumes liquidated damages up to 3% of the price are valid if both sides agreed to that clause. Ask an attorney about your specific situation.
What is a highest and best offer?
It's a request from the listing agent for each buyer's top offer by a deadline. The seller then compares terms, not just price, and may accept one or counter.
Do escalation clauses work in Sacramento?
Some sellers accept them and some don't. They reveal your maximum price, and your loan and appraisal still have to support the final number.
What happens if the appraisal is low?
You can bring more cash, renegotiate, split the difference or cancel if your appraisal contingency is still active. We show each option in dollars.
Should I write a love letter to the seller?
It's safer not to share personal details. Some listing agents won't forward letters because of fair housing concerns. Keep any note to your terms and timeline.
Can I ask the seller to pay my closing costs?
Yes, you can ask for a credit. Your loan program may limit how much a seller can contribute, so we check that before writing the offer.
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