I Accepted an Offer on My Home, Now What?

Accepting an offer on your home is a significant milestone in the selling process. This guide outlines the structured journey from offer acceptance to the final closing day, ensuring a smooth transaction.

Formalizing the Agreement

After verbally accepting an offer, formalize the agreement with a Purchase and Sale Agreement. This document outlines the sale’s terms, including price, contingency periods, and responsibilities. Both parties, often with their real estate agents, sign this contract.

The buyer provides an earnest money deposit, typically 1% to 3% of the purchase price, demonstrating serious intent and commitment. These funds are deposited into an escrow account, held by a neutral third party like an escrow company, title company, or closing attorney. This ensures funds are secure and released only when contractual conditions are met. Initial coordination begins promptly with the real estate agents and the chosen escrow or title company.

Navigating Contingencies

After the formal agreement, various contingencies must be met for the sale to proceed. These conditions protect both buyer and seller, allowing withdrawal without penalty under specific circumstances. Adhering to the timelines associated with each contingency is important.

Home Inspection

The home inspection contingency involves the buyer hiring an inspector to assess the property’s condition. This inspection covers structural integrity, systems like HVAC and plumbing, and potential issues such as pests or water damage. As the seller, your role involves facilitating access to the property for the inspector.

After the inspection, the buyer receives a detailed report. This often leads to negotiations where the buyer may request repairs, credits, or a price reduction. You must decide how to respond, whether by agreeing to repairs, offering a financial concession, or declining.

Appraisal

The appraisal contingency is important if the buyer obtains a mortgage. An appraiser evaluates the property’s market value to ensure it supports the loan amount the buyer is seeking. The appraiser, who works for the buyer’s lender, considers factors such as the home’s condition, size, location, and recent comparable sales in the area.

If the appraisal is lower than the purchase price, negotiation is needed. Options include the buyer bringing more cash to closing, the seller reducing the price, or a combination. While you do not select the appraiser, you can prepare your home by ensuring it is clean and accessible, and you may provide a list of home improvements to your agent for the appraiser’s consideration.

Buyer Financing

The financing contingency allows the buyer to terminate the contract and receive their earnest money back if they cannot obtain loan approval. The loan approval process involves the lender’s underwriter reviewing the buyer’s financial situation and the property details. This includes verifying income, assets, credit history, and the property’s value.

As the seller, you may be asked to cooperate with the buyer’s lender by providing necessary documentation or access to information about the property. The financing contingency period typically ranges from 30 to 60 days, during which the buyer works to secure final loan commitment. If the buyer fails to obtain financing within this agreed-upon timeframe, the contract may be terminated.

Title, Legal, and Document Preparation

As the sale progresses, focus shifts to ensuring clear title and preparing legal documents for ownership transfer. This phase involves detailed information gathering and review.

A title search is conducted to investigate the property’s ownership history and identify any liens, encumbrances, or claims against the property. This process, performed by a title company or attorney, ensures that the buyer will receive a clear title. If any title issues arise, such as old mortgages or unreleased liens, you will need to work with the title company to resolve them before closing.

Sellers are legally obligated to provide specific disclosures about the property’s condition and any known defects. These seller disclosure forms vary by state, but commonly include information on structural issues, environmental hazards like lead-based paint if the home was built before 1978, and past repairs. These documents are prepared and shared with the buyer.

Reviewing all closing documents is important before the final signing. These documents include the deed, which transfers ownership, and the settlement statement, often a HUD-1 or Closing Disclosure, detailing all financial aspects of the transaction. It is advisable to review these documents, potentially with legal counsel, to understand all terms, fees, and the net proceeds you will receive. You will also need to gather various documents to provide at closing, such as property surveys, home warranty information, homeowners association documents, and records of any repairs made.

The Final Walkthrough and Closing Day

The final walkthrough and closing day mark the culmination of the selling process, where ownership is formally transferred. These final steps confirm that all conditions are met and the property is ready for its new owners.

The buyer typically conducts a final walkthrough of the property shortly before closing, often within 24 to 48 hours of the scheduled closing time. The purpose of this walkthrough is for the buyer to confirm the property is in the agreed-upon condition, any negotiated repairs have been completed, and personal belongings have been removed. As the seller, your role is to ensure the home is clean, empty, and ready for this inspection.

Closing day is the official transfer of ownership, usually taking place at a title company or attorney’s office. Both parties, along with their agents and potentially attorneys, sign numerous legal documents. Key documents you will sign include the deed, transferring the property title to the buyer, and the settlement statement, confirming the financial distribution. Funds are transferred, with the buyer’s funds going to escrow and you receiving the net proceeds from the sale, often via wire transfer. The final event is the exchange of keys and any other access items, officially marking the completion of the sale.