How to Make an Offer on a House in California

By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.

In California, you make an offer by signing a written purchase agreement that states your price, deposit, financing, contingencies and deadlines, then delivering it to the seller or the listing agent along with your preapproval or proof of funds. If you work with an agent, state law requires a signed buyer-broker agreement no later than when you submit the offer. The offer becomes a contract only when the seller accepts it without changes and that acceptance is delivered back to you.

This guide covers what goes into a California offer, what to attach, how representation agreements work, how multiple offers and counteroffers play out, and when an accepted offer becomes binding. Each term links to a deeper guide.

What a California offer includes

California requires a contract to transfer real property to be in a writing signed by the party it will be enforced against, under Civil Code 1624(a)(3). Most residential buyers use the California Association of REALTORS® residential purchase agreement; our guide to the California residential purchase agreement walks through it section by section. Electronic signatures are common: under Civil Code 1633.7, an electronic record or signature satisfies a legal requirement for a writing or signature.

Each contingency has its own time period in the form, and you can shorten, lengthen or waive any of them. Rather than rely on a list of default day counts, read the current version of the form with your agent and plot your actual dates with our contract deadline calculator.

The deposit and liquidated damages

Your deposit shows the seller you are committed. If the contract includes a liquidated damages clause and you later default, the seller’s damages may be limited to the deposit. For a home of one to four units that you intend to occupy, Civil Code 1675 presumes an amount actually paid of 3% of the price or less is valid as liquidated damages, unless the buyer shows it is unreasonable. Under Civil Code 1677, the clause must be separately signed or initialed by each party. Our contingency removal guide explains when the deposit is at risk.

What to attach: preapproval or proof of funds

Sellers and listing agents want evidence that you can close.

• Financed offers. Include a lender letter. The Consumer Financial Protection Bureau explains that lenders do not use "prequalification" and "preapproval" consistently, and neither is a guarantee of a loan. Some lenders verify income, assets and credit before issuing a preapproval; ask your lender which kind of letter you have.
• Cash or large down payments. Include a recent bank or brokerage statement showing available funds. Black out account numbers, and share only what is needed.
• Your agent’s cover note. A short summary of your terms helps the listing agent compare offers.

Talk with your lender before you write, so the letter matches the price and loan amount in your offer. A letter for a higher amount than your offer can weaken your negotiating position.

Buyer representation agreement (Civil Code 1670.50)

Since January 1, 2025, Civil Code 1670.50 requires a buyer and the buyer’s agent to sign a written buyer-broker representation agreement as soon as practicable, and no later than when the buyer submits an offer. Under the statute:

• the agreement must address the broker’s compensation, the services to be provided, when compensation is due and how the agreement ends;
• it cannot run longer than three months from signing, cannot renew automatically, and any renewal must be in writing, dated and signed (the cap does not apply when the buyer is a corporation, LLC or partnership); and
• the agent must give you the agency disclosure form under Civil Code 2079.14 before you sign.

The Department of Real Estate’s consumer alert (amended December 12, 2024) adds that commissions are fully negotiable and that you may ask the seller to pay some or all of your agent’s compensation as a concession in your offer. The seller can accept or reject that request. Our buyer-broker agreement guide covers the details.

Multiple offers and escalation clauses

When several buyers want the same home, the listing agent may set an offer deadline and ask for highest and best terms. Price is only part of the picture; sellers also compare deposits, contingencies, financing strength, closing dates and rent-back requests.

An escalation clause automatically raises your price above competing offers by a set increment, up to a cap you choose. It can help, but it reveals your ceiling and some sellers will not accept it. Our escalation clause guide explains how they are written and verified.

Counteroffers

The seller may accept your offer, reject it, ignore it or counter. Under Civil Code 1585, an acceptance must be absolute and unqualified; a qualified acceptance is a new proposal. A counteroffer therefore ends your original offer and puts a new one on the table, which you can accept, reject or counter again.

Sellers who receive several offers sometimes send multiple counteroffers at once. In that situation the seller typically keeps a final step, so a buyer’s signature on a multiple counter does not by itself create a contract. See how multiple counteroffers work.

Acceptance, delivery and withdrawing an offer

Three Civil Code rules frame the timing:

1. You can withdraw before acceptance is communicated. Civil Code 1586 says a proposal may be revoked at any time before its acceptance is communicated to the proposer, but not afterward.
2. Offers expire. Under Civil Code 1587, a proposal ends when its stated acceptance deadline passes, or after a reasonable time if none is stated, as well as by revocation or the proposer’s death or incapacity.
3. Acceptance must match. Any change in the response is a counteroffer, not an acceptance (Civil Code 1585).

In practice, the purchase agreement and counteroffer forms say how and when acceptance must be signed and delivered, often to the buyer or the buyer’s agent by a stated time. Your contract timeline usually starts from that delivery, so record the date and time. If you decide to withdraw before acceptance, do it in writing and confirm it was received.

A simple offer checklist

• Signed buyer-broker agreement (if you have an agent).
• Lender preapproval or proof of funds that matches your terms.
• Disclosures and reports the seller has made available, reviewed with your agent before you write.
• Purchase agreement with price, deposit, financing, contingencies, closing date and expiration.
• Any addenda, such as an escalation clause or a request that the seller contribute to costs.
• Deposit funds ready to wire or deliver to escrow within the contract’s time frame, using verified escrow instructions.

Questions people ask

Does an offer have to be in writing in California?

Yes. Under Civil Code 1624, an agreement for the sale of real property is invalid unless it is in a writing signed by the party it is enforced against. Electronic signatures satisfy that requirement under Civil Code 1633.7.

When do I have to sign a buyer-broker agreement?

No later than when you submit your offer, under Civil Code 1670.50. Agents who belong to an MLS may ask you to sign one before touring homes because of the national settlement rules, which the DRE notes is earlier than the state deadline.

How much should my deposit be?

The amount is negotiable. Civil Code 1675 presumes a liquidated damages amount of up to 3% of the price is valid for owner-occupied homes of one to four units, so many buyers and agents keep that number in mind.

Can I withdraw my offer after I submit it?

Yes, until the seller’s acceptance is communicated to you (Civil Code 1586). Withdraw in writing and confirm the seller’s side received it.

What is the difference between a counteroffer and an acceptance?

An acceptance agrees to your exact terms. Any change, even a small one, is a counteroffer and a new proposal under Civil Code 1585.

Is a preapproval letter a guarantee that I will get a loan?

No. The CFPB says neither a prequalification nor a preapproval guarantees a loan. Keep your finances stable during escrow and keep your loan contingency until your loan is approved.

How long does a seller have to respond to my offer?

As long as your offer allows. Set an expiration date and time in the offer. Without one, an offer lapses after a reasonable time under Civil Code 1587.

Sources & notes

1. Civil Code 1624: written, signed agreement required for real property sales and broker agreements.
2. Civil Code 1633.7: electronic records and signatures.
3. Civil Code 1585, 1586 and 1587: acceptance, revocation and expiration of a proposal.
4. Civil Code 1670.50: buyer-broker representation agreement.
5. California DRE consumer alert: Changes to Real Estate Representation (amended Dec. 12, 2024).
6. Civil Code 1675 and 1677: liquidated damages.
7. CFPB: Prequalification vs. preapproval letters (last reviewed December 5, 2023).

Statute text was reviewed through a public mirror of the California codes; confirm current wording on leginfo.legislature.ca.gov. C.A.R. forms are available to members and are revised periodically, so this page does not list their default time periods; read the version you sign.

General information, not legal, tax or lending advice. Updated November 2026. Primary sources are linked in this guide.

Related: California purchase agreement · Buyer-broker agreements · Buy with Diamond