Congratulations! You’ve accepted an offer from a buyer on your home and you’re probably wondering what comes next. Though it feels like you just completed a major milestone, you’re not out of the woods yet. There is still more to do before handing over the keys. Though you and your real estate agent have made it past phase one, finding the right buyer, there is still phase two. Phase two is all the steps that come after you accept an offer on your home and getting to the final closing table.
The buyer will want to get to know their potential house and make sure they aren’t any big surprises. This article will help you navigate all the next steps, and help you walk through the contingencies that might come up so that you can put your best foot forward. Very few deals fall through after they go under contract, but we’ve compiled a to-do list so that you stay up to date on everything that happens after you accept an offer.
Read on as we highlight the closing process for sellers after you accept an offer on a home.
9 To Do’s After You Accept An Offer On A Home
Here we will lay out a hopefully straightforward guide so that you know what to expect during this exciting time.
Seller and Buyer Sign The Purchase Agreement
Typically, the first thing that happens is that a purchase agreement contract is drawn up. It will be drafted by your real estate agent or attorney and it lays out everything, from purchase price to necessary steps that need to happen before the official closing, and even a closing date.
Your real estate agent will walk you through all of this, and help you set a realistic goal for when you can be out of the house, and walk you through all the contingencies for moving.
Title Company Runs A Home Report
After accepting an offer on your home, typically the escrow agent or title company will order a title report for your house. This will identify title issues like trust complications, outstanding property taxes, or any unpaid balances from mortgage lenders.
It’s important for sellers to know that you can’t sell your house if you have any liens or debts attached to your property. Having a real estate attorney on your side can help you clear your title and help you continue with the closing process after you accept an offer.
Escrow Account Is Open and Earnest Money Is Deposited
At this point in the real estate transaction, or even before the title report is ordered, an escrow account is opened to store funds before the deal officially closes. This is usually managed by a neutral third party. After you and the buyers have signed the purchase agreement contract, the buyers will deposit earnest money into the escrow account.
The earnest money deposit is traditionally around 1-3% of the purchase price and acts as a good faith gesture that tells you, the seller, that the buyers are serious about following through with buying your home.
Home Inspection Is Scheduled
Not surprisingly, your buyer will want to make sure that your home doesn’t need any major repairs. Most real estate contracts contain a home inspection contingency, that allows the buyer to back out of the sale of the home if there are significant repairs that you aren’t willing to make or they can’t afford.
After the earnest money is deposited, the home inspection will be scheduled within 5-10 days. This is the hard part for sellers, as you just have to wait for the inspection to be completed. If you want to get a jump on this, and be prepared for what an inspector might find, we might suggest having your home inspected before even putting it on the home.
Another thing that we suggest is to prepare your home for this inspection. Make sure everything is easily accessible and not full of clutter, including the attic, basement, crawlspace, furnace, roof, everything. You don’t want to delay the closing any further by having to reschedule the inspection because they couldn’t access a particular area.
The buyer will usually be present for the inspection, and because you want them to picture themselves living in your home, you should not be there. Let them walk through your house and imagine how they would feel in this house.
After accepting an offer and after the inspector evaluates your home, a couple things might happen. First, the buyer and seller will come to a decision about the findings of the inspection and move forward with additional negotiations if needed. Or second, they terminate the contract and the process starts over with another buyer.
Your Home Is Appraised By Lender
Once the home has been inspected and negotiations have been agreed upon, the buyer’s lender will conduct a home appraisal.
For sellers, this is the part of the process where you get to stop waiting and start packing! The waiting is over and typically things run smoothly from here on out.
However, just like with a home inspection, a home appraisal contingency gives the buyer the opportunity to back out of the sale if the value of the home is significantly less than the purchase amount. Avoid issues with home value by getting an evaluation BEFORE you put your home on the market. Start by talking with a real estate agent in your area. They’ll be able to answer your questions and make sure your home is selling for what it is really worth.
Set Up A Financing Contingency
Just like we mentioned above, contingencies are put into the purchase agreement contract to protect both the buyer and the seller. A financing contingency means that the offer you accepted is contingent upon the buyer being approved for a mortgage.
This is a good idea because if the buyer fails to secure financing, you are able to accept other offers on your home if the buyer can’t come up with the necessary funds within a certain amount of time.
Final Walk Through
Before the official closing date, the purpose of the final walkthrough is for the buyer to make sure that the condition of your home hasn’t changed since the inspection. They also will confirm that any agreed upon repairs between the buyer and the seller have been made.
Work with your agent to make sure that everything in the contract is being met and keep your home clean and ready to be shown.
Paperwork Comes Together
We’re nearly there. Your home has been inspected, your buyer has received financing, and the closing date is in sight.
There is a list of paperwork that needs to come together after you accept an offer, and as the seller you don’t necessarily have to be there. You can pre-sign all of the necessary documents to transform ownership. Your agent will be with you every step of the way, and help you get the following documents together:
- HUD-1 Settlement Statement
- Deed
- Certificate of Title
- Loan Payoff
- Bill of Sale
- Statement of Information
- Statement of Closing Costs
You have officially closed on your house when both the buyer and the seller have signed all of the necessary documents, your mortgage balance is paid off by the sale, if you owe anything, and all parties have been paid. This is celebration time!
Move Out and Transfer Utilities
We mentioned above that as a seller you can start packing as soon as the home appraisal results have been accepted, and all negotiations are finalized. You can pack up you and your family and finish any last minute cleaning.
You should also make sure that utilities are transferred. Don’t do this too early, because it is common for closing dates to be adjusted during the closing process.
That’s it! You’re done. The process is over and you’ve sold your home successfully.
Contact Harbor Realty and Let Us Walk You Through The Process
Now that we’ve walked you through the steps that come after accepting an offer, we hope that you feel more prepared to sell your home.
Contact your local real estate brokers at Harbor Realty in South Bend, Washington. We would love to answer any questions that come up when you’re thinking about selling your home. It’s our mission to help you every step of the way and sell your home quickly and for the price it deserves.
