After You Make an Offer on a House, How Long Does It Take?

Submitting an offer is a significant step in homeownership, marking the beginning of a multi-faceted process. The period following offer submission involves distinct phases, each with its own timeline and requirements. The overall duration can fluctuate considerably based on various factors, including market conditions, the complexity of the transaction, and the responsiveness of all parties involved. This article guides you through the typical timeline after a home offer is made, providing insight into what to expect as you move closer to acquiring your new home.

Initial Offer Review and Negotiation

After submitting an offer, buyers typically enter a waiting period while the seller reviews the proposal. Sellers commonly respond within 24 to 72 hours. An offer often includes an expiration date, usually set around 48 hours, which encourages a timely response from the seller. If the seller does not respond by this deadline, the offer can be considered void.

The seller has several options upon receiving an offer: accepting it as-is, rejecting it, or presenting a counter-offer. A counter-offer indicates the seller’s willingness to negotiate, proposing revised terms such as price adjustments, changes to contingencies, or a different closing date. This back-and-forth negotiation can extend the initial phase, with each counter-offer typically requiring a response within one to three days.

In competitive markets, sellers may receive multiple offers, which can further impact the negotiation timeline. They might take additional time to review all proposals before deciding which one to engage with, or they may issue a “highest and best” request. This negotiation continues until both the buyer and seller agree on all terms, leading to mutual acceptance and a signed purchase agreement.

The Contingency Phase

Once an offer is mutually accepted and the purchase agreement is signed, the transaction moves into the contingency phase. Contingencies are conditions that must be met for the sale to proceed, protecting the buyer’s interests. If a contingency is not satisfied, the buyer typically has the option to withdraw from the contract without penalty.

The inspection contingency allows the buyer to thoroughly assess the property’s physical condition. Buyers typically have 7 to 14 days from contract signing to arrange and complete a professional home inspection. The inspector provides a detailed report outlining any issues, which can lead to further negotiations with the seller for repairs or a price reduction. If significant problems are found and an agreement cannot be reached, the buyer may terminate the contract.

A separate appraisal contingency protects both the buyer and their lender by ensuring the property’s value supports the loan amount. An appraisal is usually ordered by the lender and typically takes two to three weeks to complete after offer acceptance. If the appraisal comes in lower than the agreed-upon purchase price, the lender will only finance up to the appraised value, potentially requiring the buyer to cover the difference, renegotiate the price with the seller, or withdraw from the sale.

The financing, or loan, contingency provides the buyer with a set period to secure final loan approval from their lender. This contingency typically spans 30 to 60 days, during which the lender verifies the buyer’s financial documents, employment, and credit history through a rigorous underwriting process. Buyers must promptly provide all requested financial documentation to avoid delays, as the lender’s final commitment is necessary to proceed with the purchase. If the buyer cannot obtain financing within this timeframe, they can typically exit the contract without losing their earnest money deposit.

Other less common contingencies might also be included in a purchase agreement, such as a title contingency to ensure a clear title or a contingency for the sale of the buyer’s current home. Each contingency has its own specific timeframe and conditions that must be satisfied for the transaction to progress toward closing. Successfully navigating these contingencies requires diligent attention to deadlines and clear communication among all parties.

Finalizing Loan and Title

After the major contingencies, such as inspection, appraisal, and financing, have been satisfied, the process shifts towards the final administrative steps necessary for closing. This phase primarily involves the lender and the title company working to prepare all documents and ensure a smooth transfer of ownership. This stage generally takes one to two weeks.

The lender conducts a final review of all documents before issuing a “clear to close,” which signifies that the loan application has been fully approved and is ready for funding. This final review may include updated employment verifications and credit checks to ensure no significant changes have occurred since the initial approval. Buyers typically receive a Closing Disclosure document at least three business days before the scheduled closing date, detailing all final loan terms, closing costs, and cash required to close.

Simultaneously, the title company plays a central role in preparing for the transfer of ownership. They perform a final title search to confirm there are no new liens or encumbrances on the property that could affect the transfer of ownership. The title company also prepares the title insurance policies, which protect both the buyer and the lender against future claims to the property. All necessary closing documents are drafted by the title company, ensuring legal accuracy for the transfer.

A final walkthrough of the property is typically scheduled 24 to 48 hours before the closing day. This allows the buyer to ensure the property is in the agreed-upon condition, that all agreed-upon repairs have been completed, and that the seller has vacated the premises. Any discrepancies discovered during this walkthrough must be addressed promptly, as they could potentially delay the final closing.

The Closing Process

The closing process is the culmination of the home-buying journey, where all legal and financial aspects of the transaction are finalized. This event typically takes place at a title company or attorney’s office. The actual signing appointment usually lasts between one to two hours.

At the closing table, numerous legal documents are signed by both the buyer and seller. These documents include the deed, which officially transfers ownership from the seller to the buyer, and the mortgage note and deed of trust, which formalize the buyer’s loan agreement with the lender. The closing agent, often from the title company, oversees this process, ensuring all paperwork is correctly executed and notarized.

Funds are transferred from the buyer’s lender to the seller, and all closing costs, including title insurance premiums, escrow fees, and property taxes, are settled. Once all documents are signed and funds are disbursed, the property ownership is officially transferred to the buyer. The time it takes for sellers to receive their proceeds can vary from the same day to several days after closing, depending on the method of transfer and local practices.

After the closing is complete, the deed and other relevant documents are recorded with the county recorder’s office, officially documenting the change in ownership. With the paperwork finalized and funds exchanged, the buyer receives the keys to their new home.