How to Make an Offer on a House in Los Angeles: 12 Important Steps for Home Buyers

By Andrea Pazmino-Pace, REALTOR® | HomeSmart Realty Group
Updated August 20, 2026

Quick Answer: How Do You Make an Offer on a House in Los Angeles?

To make an offer on a house in Los Angeles, you should first obtain a current mortgage preapproval, confirm your available funds, sign a buyer representation agreement, review comparable sales, and decide your price and terms.

Your written offer should clearly address the purchase price, financing, deposit, closing date, possession, inspections, appraisal, loan, insurance, disclosures, and any requested seller credits.

A strong offer is not always the offer with the highest price. The best offer balances a competitive price with financing strength, reasonable timelines, clear terms, and protections that allow you to investigate the property.

Why Making an Offer in Los Angeles Requires Preparation

The Los Angeles housing market includes many different cities and neighborhoods. Offer strategies that work in Baldwin Park, Downey, Long Beach, Lincoln Heights, El Sereno, Boyle Heights, or South Los Angeles may not work the same way in every location.

Some properties receive multiple offers during the first weekend. Others remain on the market for several weeks and may offer more room to negotiate.

Property condition also varies widely. Los Angeles buyers may encounter:

• Houses built before 1950

• Hillside properties

• Condominiums and townhomes

• Duplexes and multifamily properties

• Probate or trust sales

• Tenant-occupied homes

• Properties with unpermitted additions

• Homes requiring expensive insurance

• Fixers with foundation, sewer, roof, or electrical problems

Before submitting an offer, you should understand the property, the local market, your financing, and every important term in the purchase agreement.

Step 1: Sign a Buyer Representation Agreement

California home buyers working with a real estate agent generally need a written buyer representation agreement.

Beginning January 1, 2025, California law requires a buyer’s agent and buyer to enter into a written representation agreement as soon as practical, but no later than when the buyer’s offer is executed.

The agreement should explain:

• The services the buyer’s agent will provide

• The agent’s compensation

• When compensation may be due

• The length of the agreement

• Whether the representation is exclusive

• The responsibilities of the buyer and agent

The California Department of Real Estate explains these requirements in its consumer alert about buyer representation and compensation.

Read the agreement carefully and ask questions before signing. Agent compensation is negotiable and should be discussed clearly.

Step 2: Obtain a Current Mortgage Preapproval

Before making an offer, obtain a full mortgage preapproval from a qualified lender.

A preapproval is stronger than a basic online prequalification because the lender has reviewed more of your financial information.

Your lender may review:

• Income

• Employment

• Credit

• Debts

• Bank statements

• Down payment

• Closing-cost funds

• Loan program

• Debt-to-income ratio

Ask the lender to confirm:

• Maximum purchase price

• Estimated interest rate

• Down payment

• Monthly principal and interest

• Property taxes

• Homeowners insurance estimate

• Mortgage insurance, if applicable

• HOA limits

• Estimated closing costs

• Required cash reserves

Do not use the highest approved amount automatically. Decide what monthly payment is comfortable for your budget.

Your preapproval should be recent and match the type of property you are purchasing. Financing a condominium, duplex, manufactured home, or fixer can involve different requirements.

Step 3: Confirm Your Down Payment, Deposit and Closing Funds

Before writing the offer, identify how much money you will need and where it will come from.

Your funds may include:

• Down payment

• Earnest money deposit

• Closing costs

• Inspections

• Appraisal

• Insurance

• Lender reserves

• Immediate repairs

• Moving expenses

In Los Angeles transactions, the earnest money deposit is often around 1% to 3% of the purchase price, but the amount is negotiable.

The offer should state the deposit amount and the contractual deadline for delivering it after acceptance.

Keep your funds in accounts where they can be documented. Avoid large unexplained deposits, moving money between multiple accounts, opening new credit, financing a vehicle, or making major purchases without consulting your lender.

Step 4: Study the Property Before Deciding the Offer Price

The listing price is a marketing decision. It is not necessarily the property’s market value.

Your agent should review recent comparable sales, commonly called “comps,” before recommending an offer price.

Useful comparable properties should be similar in:

• Location

• Property type

• Living area

• Bedroom and bathroom count

• Lot size

• Age

• Condition

• Parking

• Views

• Upgrades

• Sale date

Pay attention to properties that:

• Recently sold

• Are currently pending

• Remain active

• Were canceled or withdrawn

• Received price reductions

• Returned to the market

A home listed below market value may be designed to attract multiple offers. A home listed too high may provide room for negotiation.

Online estimates can provide a general reference, but they cannot fully evaluate repairs, permits, views, street conditions, lot usability, or interior improvements.

Step 5: Review the Property’s History and Available Information

Before submitting an offer, your agent should review the information that is reasonably available.

This may include:

• MLS listing history

• Previous sale information

• Days on the market

• Price reductions

• Previous canceled transactions

• Public property records

• Permit information

• Property tax records

• Natural hazard information, when available

• Seller-provided disclosures

• HOA information for condos and townhomes

• Tenant information for occupied properties

Not every disclosure will be available before the offer. The purchase agreement should provide enough time to review the documents delivered after acceptance.

If the property previously returned to the market, ask why the earlier transaction was canceled. The answer could involve financing, appraisal, inspections, insurance, title, or another issue.

Step 6: Decide the Price and the Terms Together

An offer includes much more than the purchase price.

The seller may compare:

• Offer price

• Down payment

• Loan type

• Earnest money deposit

• Financing strength

• Closing date

• Contingencies

• Requested credits

• Possession

• Included items

• Buyer-agent compensation request

• Probability of closing

For example, a slightly lower offer with strong financing and clear terms may be more attractive than a higher offer with uncertain financing or complicated conditions.

Do not increase the price without understanding how it affects your monthly payment, down payment, appraisal risk, property taxes, and cash needed at closing.

Step 7: Choose Your Contingencies Carefully

Contingencies give the buyer contractual opportunities to investigate specific parts of the transaction.

Common buyer contingencies include:

Investigation Contingency

This allows the buyer to inspect and investigate the property.

Depending on the home, inspections may include:

• General home inspection

• Roof inspection

• Sewer camera inspection

• Foundation inspection

• Electrical inspection

• Plumbing inspection

• Chimney inspection

• HVAC inspection

• Mold or moisture inspection

• Pool inspection

• Termite inspection

• Drainage or hillside evaluation

Loan Contingency

This protects the buyer while the lender completes underwriting and approves the loan.

A preapproval does not guarantee final loan approval. The lender must still review the property, appraisal, title, insurance, updated financial documents, and other conditions.

Appraisal Contingency

The lender generally orders an appraisal to evaluate the property as security for the loan.

If the appraised value is lower than the purchase price, the buyer and seller may need to renegotiate, the buyer may need to bring in additional funds, or the transaction may be affected according to the contract.

Insurance Contingency

The buyer should investigate whether acceptable homeowners insurance is available and affordable for the specific property.

Insurance should be addressed early, especially for:

• Hillside homes

• Properties near brush

• Homes with older roofs

• Older electrical systems

• Properties with previous claims

• Condominiums with HOA insurance concerns

Do not remove contingencies simply to make an offer appear stronger unless you understand the financial and legal risks.

Contingency periods are negotiable. The exact deadlines should be written clearly in the purchase agreement.

Step 8: Investigate Homeowners Insurance Early

Insurance has become an important part of purchasing a California home.

Before making an offer, consider contacting an insurance agent with the property address for an initial discussion. After acceptance, obtain written quotes as soon as possible.

The insurer may consider:

• Property location

• Fire exposure

• Roof age and condition

• Electrical panel

• Plumbing

• Claims history

• Property condition

• Distance from fire services

• HOA master insurance for condominiums

The California Department of Insurance recommends shopping among several companies and comparing both price and coverage. Its residential insurance guidance provides tools for buyers who are having difficulty finding coverage.

The California FAIR Plan may be available when traditional insurance cannot be obtained, but it is intended as a last-resort option and may require additional coverage.

Do not wait until the end of escrow to investigate insurance. An expensive premium can change your monthly payment and loan qualification.

Step 9: Decide Whether to Request Seller Credits

A buyer may request that the seller contribute toward certain allowable closing costs, subject to the loan program and lender approval.

Seller credits may help cover:

• Loan costs

• Escrow fees

• Title-related charges

• Prepaid property taxes

• Homeowners insurance

• Mortgage-rate buydown

• Other lender-approved closing expenses

A credit does not always make an offer weaker. Its effect depends on the listing price, competition, time on the market, seller motivation, and property condition.

If the home has been on the market for a long time, received a price reduction, or needs repairs, the seller may be more willing to consider credits.

In a multiple-offer situation, requesting a large credit may reduce the offer’s competitiveness.

Ask your lender to calculate how a credit would affect your cash at closing and monthly payment.

Step 10: Select a Realistic Closing and Possession Date

The offer should include a proposed closing date.

The appropriate timeline depends on:

• Loan type

• Lender processing

• Appraisal availability

• Property condition

• Seller’s moving plans

• Tenant occupancy

• Probate or trust requirements

• Title issues

• Buyer’s current housing situation

A financed purchase may need more time than a cash offer. Do not promise a closing date that your lender cannot realistically meet.

The offer should also address possession.

Possession may occur:

• At the close of escrow

• A specified number of days after closing

• Under a separate seller-occupancy arrangement

If the seller remains after closing, the agreement should clearly address the occupancy period, daily charge or rent, utilities, insurance, deposits, condition of the property, and consequences for staying longer than agreed.

Step 11: Prepare a Complete and Organized Offer Package

A complete offer package makes it easier for the listing agent and seller to evaluate the buyer.

The package may include:

• Signed purchase agreement

• Current preapproval letter

• Proof of funds

• Required disclosures and advisories

• Buyer representation documents when applicable

• Clear explanation of important terms

• Lender contact information

Protect confidential information. Proof-of-funds documents should generally hide full account numbers and unrelated personal information.

Personal buyer letters should be handled carefully. Information about family status, religion, disability, ethnicity, or other protected characteristics can create fair-housing concerns. Many brokers discourage or prohibit these letters.

Focus on the financial and contractual strength of the offer.

Step 12: Prepare for a Counteroffer or Multiple-Counteroffer

The seller may:

• Accept the offer

• Reject the offer

• Send a counteroffer

• Send a multiple counteroffer

• Allow the offer to expire without responding

A counteroffer may change:

• Price

• Closing date

• Deposit

• Contingencies

• Credits

• Included items

• Possession

• Repairs

• Buyer-agent compensation

• Other terms

Read every counteroffer carefully. A counteroffer changes the original offer and may introduce new obligations.

In a multiple-counteroffer situation, the seller may be negotiating with several buyers. A buyer’s acceptance may still require additional confirmation from the seller, depending on the document used.

Decide your maximum price and acceptable terms before emotions take over.

What Happens After the Seller Accepts the Offer?

Acceptance is the beginning of the escrow process, not the end of the buyer’s work.

After acceptance, the buyer generally needs to:

1. Deliver the earnest money deposit by the contractual deadline.

2. Submit the accepted contract to the lender.

3. Schedule inspections immediately.

4. Order or authorize the appraisal.

5. Obtain homeowners insurance quotes.

6. Review seller disclosures.

7. Review the title report.

8. Review the natural hazard disclosure.

9. Review HOA documents, if applicable.

10. Investigate permits and public records.

11. Respond to lender requests.

12. Decide whether to request repairs or credits.

13. Remove contingencies only after completing the related investigation.

14. Review final loan and closing documents.

15. Complete the final verification of property condition.

16. Transfer closing funds using verified instructions.

17. Sign the required escrow and loan documents.

Never rely on wiring instructions received through an unexpected email. Independently call the escrow company using a verified telephone number before sending money.

The California Department of Real Estate has warned consumers about real estate impersonation and wire-transfer scams. Verify the identity and license of the professionals involved through the California DRE.

Common Mistakes Los Angeles Buyers Make When Writing Offers

Offering More Than the Budget Allows

Loan approval and comfortable affordability are not the same thing. Include taxes, insurance, HOA dues, maintenance, utilities, mortgage insurance, and repair reserves.

Looking Only at the Purchase Price

A lower-priced property may need expensive repairs. Compare the price and the condition together.

Removing Contingencies Too Early

Contingencies protect important buyer investigations. Removing them without completing the work can create serious financial risk.

Ignoring Insurance Until Late in Escrow

Insurance availability and price can affect the loan and monthly payment. Start investigating early.

Failing to Review Public Records

The advertised bedroom count, bathroom count, square footage, unit count, or garage conversion may not match official records.

Making Large Financial Changes During Escrow

Changing jobs, opening credit cards, financing a vehicle, or moving large amounts of money can affect loan approval.

Focusing Only on Winning

The objective is not simply to win the offer. The objective is to buy the right property under terms you understand and can afford.

Frequently Asked Questions About Making an Offer in Los Angeles

How Much Should I Offer on a House in Los Angeles?

The offer should be based on comparable sales, condition, competition, listing history, and your budget.

Some homes may justify an offer below the list price. Others may require an offer at or above the asking price. The listing price alone does not determine market value.

How Much Earnest Money Is Common in Los Angeles?

Earnest money deposits are often approximately 1% to 3% of the purchase price, but the amount is negotiable.

The purchase agreement should clearly state the amount and deadline for delivery.

Do I Need a Preapproval Before Making an Offer?

Most sellers expect financed buyers to include a current preapproval letter.

A preapproval also helps you understand the maximum price, estimated payment, down payment, and closing funds.

Can I Ask the Seller to Pay My Closing Costs?

Yes. Seller credits may be negotiable and must comply with the buyer’s loan requirements.

Whether the seller is likely to agree depends on market competition, property condition, listing history, and the overall offer.

Should I Waive the Appraisal Contingency?

Waiving or modifying an appraisal contingency can expose you to additional financial risk if the property appraises below the purchase price.

Do not make this decision without understanding how much extra money you might need and discussing it with your agent and lender.

Can I Cancel After the Offer Is Accepted?

A buyer’s cancellation rights depend on the purchase agreement, contingencies, deadlines, disclosures, and facts of the transaction.

Do not assume you can cancel without consequences. Review the contract and obtain legal advice when necessary.

Should I Include a Personal Letter With My Offer?

Personal letters can create fair-housing concerns if they reveal protected characteristics.

A stronger approach is usually to present a complete offer supported by solid financing, proof of funds, clear terms, and a qualified lender.

How Long Does a Seller Have to Respond?

The offer normally includes an expiration date and time. The seller may accept, reject, counter, or not respond before the deadline.

Response times vary according to the seller’s instructions and the number of offers received.

Final Answer: What Makes a Strong Los Angeles Home Offer?

A strong Los Angeles home offer combines a well-supported price with verified financing, proof of funds, a reasonable deposit, clear timelines, and carefully selected contingencies.

Before submitting the offer, understand the property’s condition, listing history, insurance, comparable sales, closing costs, and possible appraisal risk.

The best offer is not necessarily the highest offer. It is an offer the buyer can complete while maintaining appropriate financial and contractual protections.

Ready to Make an Offer on a Los Angeles Home?

I’m Andrea Pazmino-Pace, REALTOR® with HomeSmart Realty Group. I help buyers evaluate Los Angeles properties, compare recent sales, understand purchase contracts, plan inspections, and prepare competitive offers.

Call (626) 590-1289 or visit AskAndreaHomes.com for a personalized home search and offer strategy.

This article provides general educational information and is not legal, tax, insurance, lending, engineering, or construction advice. Real estate forms, laws, practices, and market conditions may change. Buyers should review their specific transaction with the appropriate licensed professionals.

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Suggested excerpt: Making an offer on a Los Angeles home involves much more than choosing a price. This guide explains preapproval, buyer representation, deposits, contingencies, appraisal, insurance, inspections, seller credits, counteroffers, and what happens after acceptance.