• Appraisal Contingency: The sale is contingent on the home appraising at or above the purchase price. If the appraisal comes in lower than the offer, you can renegotiate the price, make up the difference in cash, or cancel the contract. • Sale of Current Home: Sometimes buyers include a contingency that their purchase depends on selling their current property first. Contingencies protect both buyers and sellers, and understanding them is key to negotiating a smooth transaction. Your offer is the first step in turning a potential home into your new home. In California, being thorough, organized, and guided by a knowledgeable agent ensures your offer is strong, legally compliant, and positioned for success.
Step #9: Deposit Earnest Money Into Escrow (California)
Once your offer is accepted, the next step is depositing earnest money into escrow. This deposit shows the seller you are acting in good faith and intend to complete the purchase. In California, it is customary—but not legally required—for buyers to deposit around 3% of the purchase price as earnest money. The exact amount is negotiable and must be clearly stated in the purchase agreement.
WHAT IS ESCROW?
Escrow is a neutral, third-party process designed to protect both buyer and seller during a real estate transaction. A licensed escrow company holds funds and documents while ensuring that all contractual conditions are met before ownership transfers. In simple terms, escrow keeps the money and the property in a 130
Powered by FlippingBook