What Happens After Accepting An Offer On Your Home!

Selling your home can feel like a big task, especially if it's your first time!  But after all the effort of getting your house ready, listing it, and welcoming potential buyers, you've finally received an offer-and it's a great one!  Accepting that offer is a major achievement, but it's just the beginning of the journey.

From here, depending on the closing date in your contract, you might have 30 to 60 days before the sale is finalized, the money is in your account, and you're ready to move on to the next chapter of your life. 

In this post, I'll walk you through the key steps that take place between accepting the offer and closing the deal!  Let's get started!

1.  Signing The Contract

The offer looks fantastic-great terms, great price, and you're ready to sign!  But before putting pen to paper, make sure you fully understand everything in the contract.  Here are a few key details to keep in mind:

• Purchase Price: This is how much the buyer is offering and how they plan to pay (cash, loan, etc).  It's important to understand the buyer's financing and how it could impact the transaction.
• Contingencies: These are conditions that must be met for the buyer to move forward.  Common contingencies include financing, appraisal, inspections and reviewing HOA documents.  Be sure you know what is required from both the buyer and you as the seller.
• Closing Date:  This is the agreed-upon date when the sale is set to finalize.  Make sure you're clear on what happens if the closing doesn't occur on time.

Your Realtor can walk you through the offer and answer any questions.  Now's the perfect time to ask, as signing this makes it a legally binding contract.

2.  Receipt of the Earnest Money Deposit

In most contracts around here, the buyer has a short window to submit their earnest money deposit to the trust agent who will hold it until closing.  This deposit shows you, the seller, that the buyer is serious about their offer and is willing to put up some money as a commitment.  If the buyer defaults on the contract (which is different from failing to meet a contingency), you may be entitled to keep that deposit.  

Once everything moves forward to closing, the earnest money will be applied to the buyer's final payment.  Your Realtor should follow up to ensure the deposit has been received and get proof of its receipt.

3.  Buyer Financing Contingency

Most buyers will be getting a loan to buy the house.  If so, the contract specifies how long the buyer has to meet with the lender, lock in the interest rate and begin getting whatever documentation the lender requires.  Your Realtor should be in touch with the lender on a weekly basis to make sure everything is going smoothly and there are no issues arising that could affect the transaction.  

4.  Appraisal Contingency

If the buyer is financing the purchase, their lender will likely require an appraisal.  The appraisal is meant to confirm the home's value and is done by a licensed, independent appraiser.  They'll assess your home based on recent sales in the area, its condition compared to similar properties, and its location.

Your Realtor should prepare a package for the appraiser, outlining how the asking price was determined, any multiple offers received, recent upgrades and more.  Sometimes, the appraiser may flag condition issues that could lead the lender to request repairs before approving the appraisal.

If the appraisal comes in at or above the agreed upon purchase price, you won't be notified, and the sale will proceed as planned.  However, if the appraisal comes in lower, the buyer has options: they might try to renegotiate the price, bring extra funds to cover the difference or terminate the contract if no agreement is reached.  You also have options, and your Realtor can guide you through them.

5.  Home Inspection Contingency & Repair Addendum Negotiation

Most buyers today will typically schedule a home inspection, even if they're purchasing the house "as is" and you’re not required to make repairs. Many offers still include a home inspection contingency, allowing the buyer to assess the property’s condition with a licensed inspector.

The contract will specify how much time the buyer has to complete any inspections and present an addendum requesting repairs. Once the inspection report is received, there’s a set “Negotiation Period” where both parties can discuss and negotiate the requested repairs. Buyers may choose to not request every item on the report to be fixed, and as a seller, you’re only required to negotiate based on the repairs noted in the report that the buyer has requested on their addendum. Buyers cannot request repairs for issues not included in the report.

During negotiations, the buyer may ask for a credit toward closing costs instead of repairs or request that specific repairs be made. However, they do not have the right to request a price reduction based on the inspection results. If an agreement isn’t reached, the buyer has the option to terminate the contract. If both parties come to an agreement, the sale will move forward as planned.

6.  Homeowner Association Documents Review

In Virginia, buyers have the right to receive a copy of your Homeowner Association (HOA) documents. This resale package is typically ordered from your association’s management company or, if the community is self-managed, from the designated person handling HOA matters.

Once the buyers receive the package, they have three days to review the documents and decide whether to proceed with the sale. One part of the package includes an exterior inspection of your home by the HOA to check for any violations of the association’s rules. If any issues are found, you may be required to address them.

It’s a good idea to order the resale package as soon as you list your home for sale, so it’s ready for the buyers when an offer is accepted. This can help streamline the process and avoid delays.

7.  Final Walk Through

Most buyers will want to do a final walk-through of your home before closing. Unless you’ve made an agreement to stay in the house after closing, this walk-through typically happens after you’ve moved out, usually within 24 hours of the closing date.

During the walk-through, buyers will check to ensure the house is in the same condition as when they made their offer. They’ll want to confirm that appliances and systems are still working, the home is in "broom clean" condition, no new damage has occurred, and all personal belongings have been removed. If any appliances were included in the sale, the buyer will also check that they’re still in place.

If any issues come up during the walk-through, they’ll need to be addressed before closing.

8.  Closing

In our area, the buyer will have their own attorney who will do their side of the closing on the date agreed to in the contract.  You, the seller will have your own attorney who will prepare the deed and a few other pieces of paperwork, which you will sign a few days before the buyer's closing date and which will be sent over to their attorney in time for the buyer to do their side of the closing.  However, the buyer's attorney will prepare a settlement statement showing the charges that will go on your side of the "ledger" and what you will net after all the charges are paid.  The settlement statement will show the price that was agreed to as well as any charges that will be paid from the proceeds of the sale as well as paying off your mortgage.  You and your Realtor should be able to go over the settlement statement with you to make sure the settlement statement is correct and to answer any questions about the charges shown on the statement!  The buyer's attorney will then record the deed at the courthouse and once that deed is recorded, he will disburse the funds, as dictated on the settlement statement, including wiring your proceeds to your bank account.  This process can sometimes take 1-3 days, depending on the courthouse's schedule and the day the buyers closed on the house.

Accepting an offer on your home is a major step in the home selling process - but it is only the first step.  Knowing what follows after accepting the offer lets you feel confident as you navigate the final steps in selling your home!  Having a good Realtor by your side as you move towards closing helps to make sure that the transaction stays on track to allow you to move forward on to your next chapter of life!

Thinking of selling your home?  Have questions?  Unsure where to start?  Feel free to get in touch and let's talk!