Multiple offers are the norm in Cupertino. You may feel pressure to waive contingencies to win, but you also want to protect your deposit and avoid expensive surprises. You can do both. In this guide, you’ll learn how non‑contingent offers work, the risks involved, and practical ways to reduce those risks in Santa Clara County. Let’s dive in.
Why non‑contingent offers in Cupertino
Cupertino sits in the heart of Silicon Valley with major employment nearby, including Apple’s headquarters. Strong demand and limited inventory mean sellers often receive multiple offers. In fast situations, buyers sometimes waive contingencies to stand out.
Local properties move quickly and prices are high, which compresses time for due diligence. Common items to review include permits for additions or ADUs, potential seismic or foundation issues in older homes, termite and pest activity, drainage and roof condition, and HOA covenants for condos and townhomes. You should also factor Santa Clara County property taxes and any special district assessments that can affect ongoing costs.
What waiving contingencies means
Financing contingency
Waiving financing means you accept the risk that your loan could be denied. If you do not close, you can lose your earnest money and risk default under the contract.
Appraisal contingency
Without an appraisal contingency, you agree to close even if the appraisal is below the purchase price. The lender still orders an appraisal. You must cover any shortfall in cash or renegotiate with the seller.
Inspection contingency
Waiving inspection rights removes your ability to cancel or request repairs due to new findings. Sellers still must make required disclosures, but unknown repair costs become your responsibility after close.
Sale of current home
If you waive a home‑sale contingency, you must close without selling first. That increases cash needs or the need for bridge financing.
HOA/CC&R review
Skipping this protection on a condo or townhome removes your option to cancel after reviewing HOA documents. Rules, financials, or assessments can still impact you post‑close.
Title issues
Title contingencies are rarely waived in full. Clear title and title insurance are essential because liens or encumbrances can block closing.
Strengthen financing first
- Seek a full pre‑underwrite or a loan commitment from your lender, not just a basic pre‑approval. This reduces last‑minute surprises.
- Provide proof of funds. If you can buy with cash, you remove appraisal and underwriting risk, though inspection and title risks remain.
- Use an appraisal‑gap clause to limit exposure. Commit to pay a set dollar amount or percentage above the appraised value so the seller sees strength without removing all protection.
Inspection choices that reduce risk
- Ask for a pre‑offer inspection with the seller’s permission. It is not always possible, but it can be worth it on a high‑value home if you plan to waive inspection later.
- Offer a shortened inspection contingency of 3 to 5 days instead of a full waiver. You retain a narrow window to cancel for major issues.
- Consider an information‑only inspection to inform your offer. You get insight but agree to limited remedies.
- Scope specific contingencies when warranted, such as keeping a termite/pest or sewer scope contingency while waiving the general inspection right.
Contract tools that protect you
- Escrow holdback: Hold a portion of funds in escrow after closing to complete agreed repairs or permit corrections. Define scope, cap, and timeline in writing.
- Seller credit: Negotiate a credit at closing to offset repairs, paired with a documented cap or an escrow holdback if the work is uncertain.
- Repair caps: Agree that one party covers repairs up to a set amount. Clear language in the contract is key.
- As‑is pricing: If the sale is as‑is, negotiate price, credits, or a holdback to account for unknowns.
Title and disclosure review
- Request seller disclosures and, for condos or townhomes, HOA documents as early as possible, even if you plan to waive other contingencies.
- Obtain a title commitment and buy owner’s title insurance to protect against defects found after closing.
- Confirm any special assessments such as Mello‑Roos or community facility district charges that change your monthly costs.
Insurance and repair reserves
- Consider a home warranty for basic systems in the first year. It does not replace inspections but can reduce small surprises.
- Set aside a repair reserve so you can act quickly after closing if issues arise.
- Pair your plan with owner’s title insurance for protection against covered title defects.
Negotiation tactics that win bids
- Increase your earnest money deposit to show seriousness, while staying within a risk level you can accept.
- Offer flexible timing, including a rent‑back if the seller needs time to move.
- Provide proof of financial strength to build confidence.
- Use an escalation clause to beat competing offers up to a clear cap, drafted to align with local rules.
Local disclosures and permits to review
- California requires a Transfer Disclosure Statement and a Natural Hazard Disclosure. Homes built before 1978 require a lead‑based paint disclosure.
- Verify permits for renovations, additions, or ADUs with the City of Cupertino or Santa Clara County where applicable. Unpermitted work can be costly to fix.
- For HOAs, review financials, reserves, pending litigation, special assessments, and any rental restrictions.
- Check county records for liens, judgments, or unpaid assessments.
- Investigate any sewer lateral inspection or repair requirements that may apply at sale.
- Coordinate with escrow on clear title, accurate escrow instructions, and any holdbacks you negotiate.
Fast‑track buyer checklist
- Financial
- Get pre‑underwritten or secure a loan commitment.
- Prepare proof of funds and confirm cash for any appraisal gap.
- Decide your appraisal‑gap limit and document it.
- Due diligence
- Request seller disclosures and HOA documents early.
- Ask for a pre‑offer inspection or plan a 3 to 5 day post‑offer window.
- Order a title commitment and review exceptions.
- Check permits and county records for liens or assessments.
- Contract protections
- Use escrow holdbacks, repair caps, or seller credits where needed.
- Keep a narrow contingency such as pest or sewer if warranted.
- Align appraisal‑gap and funding plan with your lender.
- Insurance and reserves
- Purchase owner’s title insurance.
- Consider a home warranty and set a repair reserve.
- Post‑offer coordination
- Line up inspectors and schedule quickly.
- Confirm appraisal timing and funds for any shortfall.
- Finalize escrow instructions, including any holdbacks.
Sample accelerated timeline
- Day 0: Offer accepted. Open escrow and deposit earnest money.
- Days 0 to 2: Order title and inspections. Lender orders the appraisal.
- Days 3 to 7: Complete inspections. Draft holdback or credit terms if needed.
- Days 7 to 14: Appraisal returns. Lender issues clear‑to‑close or you wire gap funds.
- Days 14 to 30: Clear final title conditions and close escrow.
Build the right local team
- A Cupertino‑savvy real estate agent who knows competitive offer strategies and local permitting nuances.
- A lender who can pre‑underwrite and move quickly.
- A home inspector with Bay Area experience, plus specialized termite, sewer, roof, or structural pros as needed.
- A title and escrow officer familiar with Santa Clara County practices and assessments.
- A real estate attorney for complex holdbacks, unusual title matters, or unpermitted work risks.
Final thoughts and next steps
You can write a compelling non‑contingent offer and still protect yourself. Focus on strong financing, early disclosures and title review, targeted inspection strategies, and smart contract tools like holdbacks and repair caps. With the right team and a clear plan, you can compete in Cupertino without taking on more risk than you intend.
If you want a calm, data‑driven path to winning the right home, connect with The Lister Team for a private consultation.
FAQs
What is a non‑contingent offer in Cupertino?
- It is an offer with few or no contractual outs for financing, appraisal, or inspections, used to stand out in multiple‑offer situations common in Cupertino.
What happens to my deposit if I waive contingencies?
- If you fail to close, you risk losing your earnest money and may face default under the contract. The exact outcome depends on your agreement’s language.
How does an appraisal‑gap clause help me?
- You agree to cover a set amount above the appraised value, which reassures the seller while limiting your maximum cash exposure.
Can I make an all‑cash offer and keep inspection rights?
- Yes. Cash offers can include an inspection contingency. Sellers often favor cash, but any contingency can affect competitiveness.
Are escrow holdbacks used in Santa Clara County?
- Yes. They are used when repairs or permits must be completed after closing. Clear scopes, caps, and timelines must be written into escrow instructions.
