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
Serving Los Angeles and surrounding communities | Updated August 2026

Buying a home in Los Angeles can be competitive, expensive, and complicated. Before placing an offer, you should understand the property’s value, your financing, the contract terms, and the protections available to you.

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:

1. Sign a written buyer representation agreement.

2. Obtain a mortgage preapproval.

3. Confirm your down payment and closing funds.

4. Review comparable home sales.

5. Investigate the property and neighborhood.

6. Choose an appropriate offer price.

7. Decide which contingencies to include.

8. Research homeowners insurance.

9. Determine whether to request seller credits.

10. Select your closing and possession dates.

11. Submit a complete offer package.

12. Prepare for a counteroffer.

A strong offer is not always the highest offer. Price matters, but sellers also review financing, contingencies, deposit amount, closing timeline, and the buyer’s ability to complete the transaction.

12 Important Steps When Placing an Offer on a Home in Los Angeles

1. Sign a Written Buyer Representation Agreement

Before working with a real estate agent, discuss the services the agent will provide and how the agent will be compensated.

California law requires a written buyer-broker representation agreement no later than the time the buyer executes an offer to purchase a property. In many situations, the agreement must be signed before touring a home.

The agreement should explain:

• The agent’s responsibilities

• The services included

• The length of the agreement

• The areas or properties covered

• How the agent may be compensated

• Whether the agreement is exclusive

• How the agreement may be canceled

Read the agreement carefully and ask questions before signing.

2. Obtain a Full Mortgage Preapproval

A mortgage preapproval helps you understand how much you may be able to borrow. It also shows the seller that a lender has reviewed your financial information.

A strong preapproval generally includes a review of:

• Income

• Employment

• Credit

• Bank statements

• Available down payment

• Monthly debts

• Loan program

• Estimated interest rate

A prequalification is usually less detailed than a preapproval. In a competitive Los Angeles market, sellers may prefer buyers who have completed a more thorough lender review.

Ask your lender how changes to interest rates, property taxes, homeowners insurance, and HOA dues could affect your monthly payment.

Do not open new credit accounts, finance a vehicle, change jobs, or make large unexplained bank deposits while purchasing a home without first speaking with your lender.

3. Confirm Your Down Payment, Deposit, and Closing Funds

Before writing an offer, confirm that you have enough money for more than the down payment.

Your available funds may need to cover:

• Earnest money deposit

• Down payment

• Lender fees

• Escrow and title charges

• Appraisal

• Home inspections

• Homeowners insurance

• Property tax adjustments

• HOA charges, if applicable

• Moving expenses

• Immediate repairs

The earnest money deposit is submitted after the offer is accepted, according to the time stated in the purchase agreement. The amount can vary and should be discussed with your real estate agent.

Never send funds using wiring instructions received only through an unverified email. Wire fraud is a serious risk in real estate transactions. Confirm all wiring instructions directly with escrow by calling a trusted and independently verified telephone number.

4. Review Comparable Home Sales

The listing price does not always represent the property’s market value. Before choosing an offer price, review comparable properties that recently sold in the same area.

Useful comparisons may include:

• Recent sales nearby

• Similar square footage

• Similar lot size

• Bedroom and bathroom count

• Property condition

• Garage and parking

• Views

• Additional units or ADUs

• Renovations

• School boundaries

• Street location

• Proximity to freeways or commercial areas

Los Angeles values can change from one street to another. A home on a quiet residential street may sell differently from a similar home near a freeway, busy intersection, industrial property, or high-traffic business corridor.

Active listings and pending sales can also help you understand current competition, but closed sales provide stronger evidence of what buyers have recently paid.

5. Investigate the Property Before Making an Offer

You may not receive every disclosure before submitting your offer. However, you can still perform preliminary research.

Ask your agent to help review available information about:

• Property tax records

• Permit history

• Square footage

• Bedroom and bathroom count

• Previous sales

• Days on the market

• Price changes

• Prior canceled or expired listings

• Known repairs or renovations

• Solar agreements

• HOA documents

• Tenant occupancy

• Accessory dwelling units

• Zoning

• Code enforcement issues

Do not assume that every bedroom, bathroom, addition, garage conversion, or ADU was completed with permits. The physical property may not match public records.

Los Angeles includes properties under different city and county jurisdictions. Permit and code enforcement research must be completed through the correct local agency.

6. Choose an Offer Price Based on the Property and Your Goals

Your offer price should reflect the property’s condition, comparable sales, current competition, and your financial limits.

Before choosing a price, ask:

• How long has the property been listed?

• Has the seller reduced the price?

• Are there multiple offers?

• Does the home need repairs?

• How does it compare with recent sales?

• Is the property likely to appraise?

• How much competition exists in this price range?

• What is the highest payment I can comfortably afford?

Avoid choosing a price based only on emotion or fear of losing the property. Establish your maximum price before negotiations begin.

If you plan to offer above the listing price, speak with your lender about the appraisal risk and how an appraisal shortage could affect your required funds.

7. Understand Your Contingencies

Contingencies give buyers time to investigate the property, financing, value, title, insurance, and other conditions before moving forward.

Common California purchase contingencies include:

Inspection contingency

This gives you time to inspect and investigate the property. Depending on the home, inspections may include:

• General home inspection

• Roof inspection

• Sewer inspection

• Foundation inspection

• Termite inspection

• Electrical inspection

• Plumbing inspection

• Chimney inspection

• Mold evaluation

• Pool inspection

• HVAC inspection

• Septic inspection

• Geological or hillside review

Loan contingency

This provides time to obtain final loan approval. A preapproval does not guarantee that the loan will close.

The lender still needs to approve the buyer, property, appraisal, insurance, and loan conditions.

Appraisal contingency

This protects the buyer if the property appraises below the agreed purchase price, subject to the terms of the contract.

Title review

Buyers should review the preliminary title report for liens, easements, restrictions, ownership questions, and other recorded matters.

Document review

For condominiums, townhomes, and properties with homeowners associations, buyers should review the HOA’s financial statements, insurance, rules, meeting minutes, reserves, pending assessments, and litigation information.

Removing or shortening a contingency can make an offer more attractive to a seller, but it can also increase the buyer’s financial and legal risk. Do not waive a contingency without understanding the possible consequences.

8. Investigate Homeowners Insurance Early

Homeowners insurance has become an important part of purchasing a home in California. Availability and cost can vary based on the property’s location, age, roof, electrical system, prior claims, condition, and wildfire exposure.

Before submitting an offer, or immediately after acceptance, contact insurance providers and ask:

• Is the property insurable?

• What coverage is available?

• What will the annual premium be?

• Is wildfire coverage included?

• Are there exclusions?

• Will the roof or electrical system create a problem?

• Is flood or earthquake insurance recommended?

• Will the property require a California FAIR Plan policy?

Insurance costs can affect your mortgage qualification and monthly payment. Start researching coverage early instead of waiting until the end of escrow.

9. Decide Whether to Request Seller Credits

A buyer may request that the seller contribute toward certain closing costs, subject to the loan program and contract terms.

Seller credits may help pay for:

• Loan costs

• Interest-rate buydowns

• Escrow charges

• Title charges

• Prepaid expenses

• Other approved closing costs

A seller credit can reduce the amount of cash needed at closing, but it may affect how the seller evaluates the offer.

For example, an offer of $750,000 with a $15,000 credit does not provide the seller with the same net amount as a $750,000 offer without a credit.

Discuss the request with your lender and agent before submitting the offer. The credit should fit your loan program and financial strategy.

10. Select the Closing and Possession Dates

The closing timeline may affect whether the seller accepts your offer.

Before selecting a closing date, confirm that your lender can complete the loan within that period. Common escrow periods may range from approximately 21 to 45 days, depending on financing and the transaction.

Also determine when you will receive possession.

Possession could occur:

• At the close of escrow

• A specified number of days after closing

• According to a separate seller occupancy agreement

If the seller remains in the property after closing, the agreement should clearly address the move-out date, daily charge or rent, deposit, utilities, property condition, insurance, and responsibilities during the occupancy period.

Do not assume that closing and possession will occur at the same time.

11. Submit a Complete and Organized Offer Package

A complete offer package can help the seller and listing agent evaluate your offer quickly.

The package may include:

• Signed purchase agreement

• Mortgage preapproval letter

• Proof of funds

• Buyer representation documents, when required

• Required disclosures or advisories

• Clear information about the deposit

• Requested seller credits

• Proposed closing date

• Contingency periods

• Possession terms

Protect your personal information. Bank statements used as proof of funds should show enough information to verify available funds while covering unnecessary account numbers and other sensitive details.

Your agent should contact the listing agent, confirm the seller’s preferred terms, and verify that the offer was received.

12. Prepare for a Seller Counteroffer

The seller may accept, reject, or counter your offer.

A counteroffer may change:

• Purchase price

• Deposit amount

• Closing date

• Contingency periods

• Seller credits

• Included appliances

• Repairs

• Possession

• Escrow or title provider

• Other contract terms

Review every change carefully. A small change in price may be less important than an unfavorable change to inspections, financing, possession, or credits.

Do not focus only on “winning.” The goal is to purchase a property that fits your needs without accepting risks you do not understand.

What Happens After the Seller Accepts Your Offer?

Once your offer is accepted, the escrow period begins. The exact responsibilities and deadlines depend on the contract.

Your next steps may include:

1. Sending the earnest money deposit to escrow.

2. Scheduling all property inspections.

3. Reviewing seller disclosures.

4. Completing the loan application.

5. Providing lender documents quickly.

6. Ordering and reviewing the appraisal.

7. Obtaining homeowners insurance.

8. Reviewing the preliminary title report.

9. Reviewing HOA documents, when applicable.

10. Investigating permits and zoning.

11. Requesting repairs or credits, if appropriate.

12. Removing contingencies in writing when ready.

13. Signing final loan and escrow documents.

14. Completing the final property verification.

15. Transferring the remaining closing funds.

16. Confirming that the deed has recorded.

Deadlines matter. Missing a contractual deadline can affect your rights and may place your deposit at risk.

Common Mistakes Los Angeles Home Buyers Should Avoid

Offering More Than You Can Comfortably Afford

Loan approval does not mean the payment fits your lifestyle. Consider taxes, insurance, HOA dues, maintenance, utilities, repairs, and other monthly expenses.

Waiving Inspections Without Understanding the Risk

A property can have foundation, roof, sewer, electrical, plumbing, drainage, or unpermitted construction problems that are not visible during a showing.

Ignoring Insurance Until the End of Escrow

Insurance availability or cost can affect loan approval and affordability.

Assuming an ADU or Addition Is Permitted

Ask for permits and compare the property with public records. A finished space does not automatically mean it is legal or approved for its current use.

Making Large Financial Changes During Escrow

New debt, job changes, large purchases, or unexplained deposits may affect loan approval.

Sending Money Without Verifying Instructions

Always confirm escrow wiring instructions directly with a trusted telephone number.

Focusing Only on the Purchase Price

Contingencies, closing costs, credits, possession, repairs, appraisal risk, and financing can be equally important.

Frequently Asked Questions About Making an Offer in Los Angeles

Do I need a preapproval before making an offer?

A preapproval is not always legally required, but most sellers expect financed buyers to include one. It makes the offer more credible and helps the buyer establish a realistic price range.

How much earnest money do I need in California?

The amount is negotiable and depends on the transaction. Your real estate agent can explain common practices and the amount requested in the purchase agreement.

Should I offer above the asking price?

It depends on comparable sales, competition, property condition, and your financial limits. A home listed below market value may attract multiple offers, while an overpriced property may sell below the asking price.

Can I request repairs after my offer is accepted?

If your contract includes an inspection contingency, you may be able to request repairs, credits, or another solution based on your investigations. The seller is not automatically required to agree.

Can I cancel after my offer is accepted?

Your cancellation rights depend on the contract, contingencies, disclosures, deadlines, and circumstances. Speak with your real estate agent and, when necessary, a qualified California real estate attorney before canceling.

Is the highest offer always accepted?

No. A seller may choose a lower offer with stronger financing, fewer risks, better timing, a larger deposit, or terms that better match the seller’s needs.

Should I waive the appraisal contingency?

Waiving an appraisal contingency can increase your financial risk. If the appraisal is below the purchase price, you may need additional cash or could face other consequences under the contract. Discuss this carefully with your agent and lender.

How long does it take to close on a home in Los Angeles?

Many transactions close within approximately 21 to 45 days, but the timeline depends on financing, inspections, appraisal, insurance, title, and the terms negotiated between the buyer and seller.

Get Help Placing an Offer on a Los Angeles Home

Every Los Angeles property and transaction is different. A successful offer should reflect the home’s market value, your financing, your goals, and the level of risk you are comfortable accepting.

If you are planning to buy a home in Los Angeles, Baldwin Park, Long Beach, Downey, El Monte, the San Gabriel Valley, or another nearby community, I can help you evaluate the property, review comparable sales, prepare your offer, and manage the transaction from acceptance through closing.

Andrea Pazmino-Pace, REALTOR®
HomeSmart Realty Group
Phone: (626) 590-1289
Website: AskAndreaHomes.com

This article provides general real estate information and is not legal, tax, insurance, or financial advice. Contract terms and property conditions vary. Buyers should consult the appropriate licensed professionals regarding their individual situation.

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Important steps for making an offer to purchase a home in Los Angeles

Article Excerpt:
Learn the 12 important steps for making an offer on a home in Los Angeles. This guide explains preapproval, offer price, deposits, inspections, contingencies, insurance, seller credits, counteroffers, and what happens after your offer is accepted.