If you’re a buyer ready to make an offer on your dream Coronado home or a seller reviewing incoming offers, understanding the residential purchase agreement is essential. This legally binding document contains a lot more than just the purchase price.
We work with Coronado homebuyers and sellers every day to decode these agreements and ensure nothing gets overlooked. Below are the basics on what you need to know and the key components you’ll encounter.
What Are the Main Terms and Conditions in a Coronado Buyer Offer?
The purchase price is the headline number everyone focuses on, but a strong buyer offer includes more than the dollar amount.
The basics matter. The offer date and expiration create a time-sensitive framework that protects both parties. Sellers need time to review and compare offers, but buyers also need certainty rather than having their offer hang in limbo indefinitely. This expiration gives structure to the negotiation process and keeps the transaction moving forward.
Financing tells the real story. How the buyer plans to pay matters tremendously. A cash offer carries different weight than one requiring mortgage financing, and the down payment percentage can signal the buyer’s financial strength. The initial deposit (earnest money) typically ranges from 1% to 3% of the purchase price and demonstrates the buyer’s serious commitment.
Know who’s representing you. Agency disclosures outline who represents whom in the transaction. Your agreement will specify the buyer’s agent and brokerage, the seller’s agent and brokerage, and clarify any dual agency situations. When you work with top Coronado real estate agents like our team, you’ll have clear representation and advocacy throughout the entire process.
How Do Contingencies Protect Coronado Buyers and Sellers?
Contingencies are conditions that must be met for the purchase contract to move forward. They provide crucial protection points for buyers while still offering reasonable terms for sellers. The three major contingencies are inspection, appraisal, and loan approval.
Inspection contingency gives buyers the right to conduct professional home inspections and investigate the property’s condition. Buyers can look for structural issues, pest damage, mold, and other concerns during a specified period. If major defects surface, buyers can negotiate repairs, request a price reduction, or cancel the contract without penalty.
Once buyers remove this contingency, they accept the property’s condition and waive the right to object to any issues the inspection uncovered.
Appraisal contingency protects buyers when financing is involved by ensuring the property appraises at or above the agreed purchase price. If the appraisal comes in low, buyers can renegotiate or walk away without losing their earnest money deposit.
Loan contingency allows buyers to cancel if their mortgage financing falls through despite their good faith efforts.
Other protections to consider. Additional contingencies might address title review, homeowner’s insurance approval, seller’s disclosures, or HOA documents for properties in Coronado neighborhoods with association governance. Investment properties may require review of rental leases and accounting.
In highly competitive seller’s markets, some buyers waive contingencies to strengthen their offers, but this carries risk. As the saying goes, caveat emptor (buyer beware). We always advise our clients to carefully consider the implications before waiving any protections.
What About Escrow, Closing, and Items Included in the Sale?
The purchase agreement designates which escrow company will handle the transaction and hold funds, documents, and instructions from both parties until all conditions are met. The projected close of escrow date gives everyone a target timeline, typically 30 to 60 days from acceptance.
Don’t assume everything stays with the home. One of the most commonly disputed areas involves what the seller takes when they move out. Fixtures and fittings permanently attached to the home generally stay unless specifically excluded, but personal property must be explicitly specified in the contract to be included.
Refrigerators, freestanding stoves, certain appliances, bathroom mirrors, window treatments, and even EV chargers often fall into this gray area. If you’re making an offer to buy a home in Coronado and you want the gorgeous custom drapes or the high-end refrigerator included, talk to your agent and make sure it’s written into the agreement.
Our team always reviews these details carefully to avoid surprises on moving day. Browse our portfolio of Coronado luxury properties to see what’s on the market and our recent sales.
What Other Clauses Should You Understand?
Liquidated damages limits the seller’s remedies if a buyer fails to complete the contract, typically capping damages at the earnest money deposit amount of around 3%. This provides certainty for both parties about the financial consequences of a buyer’s breach.
Arbitration clauses outline how disputes will be resolved. Rather than going through a full court process, binding arbitration provides a faster, often less expensive way to settle disagreements that may arise during or after the transaction.
The purchase agreement may also address seller disclosure requirements, default and termination conditions, and possession date and terms. For properties in the Coronado market, specialized considerations might include coastal commission approvals, historic designation restrictions, or military housing allowance qualifications given the proximity to Naval Base Coronado.
To see current market trends and pricing data, check our regularly updated Coronado real estate market reports.
Making Informed Decisions About Your Coronado Real Estate Transaction
This overview covers many of the essential components you’ll encounter in a residential purchase agreement, but it’s not an exhaustive list. Every transaction brings unique circumstances, and the Coronado market presents its own specific opportunities and challenges.
Your best protection and path to confidence is working with a knowledgeable real estate agent serving Coronado who can answer your questions, explain the implications of each contract term, and connect you with additional resources including real estate attorneys, inspectors, and lenders when needed.
If you’re preparing to buy a Coronado property or you’re ready to sell your Coronado home and want to know what to expect when offers start coming in, our team provides the expertise and concierge-level support to guide you confidently from start to finish. Contact us today. We look forward to speaking with you!
Questions? Ask Your Coronado Real Estate Experts
As always, we are happy to help connect you to a great financial advisor, real estate lawyer, or any other industry pro you need. As the top real estate agent in Coronado, I and my team are your real estate resource. If you have a question, or when the time comes to buy or sell, please feel free to contact us.