Your offer is more than just a price. Here's what goes into it.
Purchase Price
The amount you're offering to pay. In competitive markets, this often exceeds the list price.
Earnest Money Deposit
Shows you're serious. Typically 3% of purchase price in the Bay Area, deposited within 3 days of acceptance.
Contingencies
These are your "outs" if something goes wrong:
Inspection Contingency (17 days typical)
Right to inspect and request repairs or cancel if findings are unacceptable.
Appraisal Contingency
Protection if the home appraises for less than your offer price.
Loan Contingency (21 days typical)
If your financing falls through, you can cancel without losing your deposit.
Seller Credits
Asking the seller to pay some of your closing costs. This increases the effective price you're paying.
Appraisal Gap Coverage
Promising to pay the difference if the appraisal comes in low, up to a certain amount.
Other Terms
- Closing timeline
- Rent-back arrangements
- What's included (appliances, fixtures)
- Specific contingencies (sale of your current home)