Contracts, contingencies and negotiation.

Certainty and fit. Proof of funds or a fully underwritten approval, a deposit that signals commitment, contingency periods the buyer can actually meet, a closing date that matches the seller's needs, and clean terms without unusual requests. A slightly lower offer that will certainly close often beats a higher one that might not.

Ask what the seller needs before writing. Timing and possession are frequently worth more than the last few thousand dollars.

SourceCalifornia Association of REALTORS ↗ (opens in a new tab)

The seller can accept one offer, counter one, counter several, or ask all parties for their best terms. There is no legally required process, and sellers are not obliged to disclose the other offers or to take the highest number.

Ask the listing agent how the seller intends to handle it, and write terms you would be comfortable with regardless of the outcome.

SourceCalifornia Department of Real Estate ↗ (opens in a new tab)

It is a term that automatically raises your offer above a competing offer up to a stated ceiling. It can win a bidding situation, but it reveals your maximum, requires verification mechanics, and is not accepted by every seller or every agent.

Consider whether a clean, well-structured offer at your real number would serve you better than exposing your ceiling.

General informationNo single public source governs this. It depends on the property and the contract, and this page is general information, not advice for your situation. Confirm specifics with the appropriate professional.

Once a contract is fully executed, the seller is under contract with you. A seller may accept a backup offer that takes effect only if the primary contract cancels. Accepting a second primary contract on the same property is a breach.

Backup position is real but secondary. Know which one you are in, in writing.

SourceCalifornia Association of REALTORS ↗ (opens in a new tab)

It is the written notice by which a buyer gives up a specific protection, such as inspection, appraisal or loan. Removing a contingency shifts risk to the buyer and puts the deposit at stake if the buyer later fails to perform.

In California, contingencies generally must be removed actively in writing rather than expiring on their own, which is a detail that catches people out.

SourceCalifornia Association of REALTORS ↗ (opens in a new tab)

The seller can issue a formal notice demanding performance within a specified period. If the buyer still does not perform, the seller may be able to cancel. Missing a date does not automatically end the contract.

The standard contract uses a Notice to Buyer to Perform for most missed steps and a separate Demand to Close Escrow for a missed closing date; the timeframes are set by the contract and enforced strictly.

SourceCalifornia Association of REALTORS ↗ (opens in a new tab)

Most often as a credit toward the buyer's closing costs, sometimes as a price adjustment, occasionally as seller-completed repairs. A seller has no obligation to agree to any of it, and a buyer requesting a long list of small items usually gets less than one asking for the two or three that matter.

Distinguish between defects that a future buyer will also find and items that are simply maintenance or preference.

General informationNo single public source governs this. It depends on the property and the contract, and this page is general information, not advice for your situation. Confirm specifics with the appropriate professional.

A backup offer is a fully negotiated contract that moves into first position once the seller gives written notice that the primary contract has cancelled. It costs little to write and can be valuable when transactions are falling out of escrow.

Confirm how your deposit is handled while in backup position and how you can withdraw.

SourceCalifornia Association of REALTORS ↗ (opens in a new tab)

No. Compensation is negotiable in every transaction, and it is not set by law, by any association or by any multiple listing service. Since the 2024 industry changes, offers of compensation are no longer published in the MLS, and buyer representation terms are set in a written agreement signed early, no later than the buyer's offer.

Ask what services are included at the rate quoted, and get the answer in the agreement rather than in conversation.

SourceCalifornia Department of Real Estate ↗ (opens in a new tab)

It is a contract provision setting the amount a seller may keep if the buyer defaults, capped at three percent of the price for a home of one to four units the buyer will live in. It must be separately signed or initialed by both parties to apply.

It is a limit as well as an exposure, and whether it is in your interest depends on which side of the transaction you are on.

SourceCalifornia Civil Code 1675 · Liquidated damages ↗ (opens in a new tab)

You can stop performing, but the consequences change. Once contingencies are removed, the seller may pursue the deposit under the contract's default and liquidated damages provisions, and disputes typically go to mediation and then arbitration or court.

This is a legal question with real financial stakes. Talk to a real estate attorney before deciding.

SourceCalifornia Association of REALTORS ↗ (opens in a new tab)

It is money the seller contributes toward the buyer's closing costs or repairs, reducing the buyer's cash to close. Lenders cap how much of a credit can be applied, and the cap varies by loan type and down payment.

A credit larger than the lender allows is wasted, so structure it with the loan officer rather than around them.

General informationNo single public source governs this. It depends on the property and the contract, and this page is general information, not advice for your situation. Confirm specifics with the appropriate professional.