What Happens After Your Offer on a House is Accepted?
If you’ve just had your offer on a house accepted - first of all, congratulations! That’s definitely something to celebrate, especially in this crazy market right now! But with all the excitement, I’m sure you’re feeling a little overwhelmed, too. Many buyers (especially if you’re a first time home buyer) aren’t quite sure what to expect after their offer is accepted on a house and they go under contract. And that’s totally okay - that’s why I’m here to help you out!
So, I thought it would be helpful to break down some of the key steps after your offer on a house is accepted, so you have a better idea of what to expect.
Main Steps After Your Offer on a House is Accepted
After your offer is accepted on a house and you start the escrow process, here’s what will happen:
1. Put down your earnest money deposit
This is also sometimes called a “good faith deposit.” It basically shows the seller that you’re serious about buying the house. Earnest money deposits are usually somewhere between 1% to 3% of the price of the home. When you put down your earnest money, it will be held in what’s called an escrow account, so it can be applied toward your closing costs later on.
2. Schedule your home inspection
If you choose to have a home inspection (which, except in rare cases, I always recommend!), this is an important step in the escrow process after your offer is accepted. In general, this is one of the first things we’ll do once we enter escrow, because this gives us a longer window to address any issues that may come up during the inspection or to request repairs from the seller. This will usually cost anywhere from $400 to $600 and up (if you want a breakdown of other real estate closing costs for buyers, I have a blog all about that here!).
What happens during a home inspection is that a licensed inspector will come out to the property and inspect the condition of the home. They’ll generally look over the house’s structure, wiring, plumbing, HVAC, roof, windows, and more to make sure there aren’t any major issues, and you’ll get a report after going over the findings. From there, if there are things that need to be addressed, you and your REALTOR® will come up with a plan to request repairs (or, in extreme cases, cancel your contract to buy the home).
3. Order your home appraisal
This is another very important step after your offer on a house is accepted! During a home appraisal, a licensed appraiser will go out to the property to come up with an accurate value of the home. The appraiser will take into account the condition of the home, any upgrades that have been made, and the neighborhood, as well as the value of similar homes that have recently sold. From there, they determine the home’s value. Your lender then uses the appraisal to make sure the home is actually worth the amount they’re lending you to buy it.
Depending on the outcome of the appraisal (whether it comes back higher or lower than the price your offer was accepted at), there may be more negotiation that needs to happen between you and the sellers, which your REALTOR® will help guide you through.
4. Turn on utilities
Contact the utility companies to either schedule a time to have utilities turned on, or transferred over to you. This includes electricity, internet, trash, water, etc. Usually the seller will provide information on their utility providers, or you can get them set up with new companies. It’s up to you!
5. Have your final walkthrough of the house
The walkthrough is typically the last step before closing. At this point, you and your REALTOR® will do one final “inspection” of the house to make sure everything has been covered and is working as it’s supposed to, such as:
Testing appliances that are included in the sale
Plumbing, electricity, and HVAC is working with no issues
Windows and doors aren’t sticking and function properly
The structure has no new damage
If you do find any issues during the final walkthrough, make sure to make note of them so your REALTOR® can help get the issue resolved, and keep your timeline on track to closing.
6. Close on your new home!
It’s time to close on your new home! The day of, you’ll meet with your REALTOR® (and sometimes the sellers and their agent) at the title company to sign all the paperwork and finalize your loan. You may be asked to pay for your closing costs with a wire transfer or cashier’s check, so be sure to plan accordingly for that. Closing usually takes around an hour, and from there, the paperwork will be fled with the county recorder to officially transfer and record title to you.
From there, you’ll get the keys to your new home and can officially move in!
So, hopefully this helped clear up some of the steps after your offer on a house is accepted! I know it can seem overwhelming, but broken down into steps like this, it’s really a pretty simple process.
And as always, if you have any questions around any of this, the closing process, or home buying in general, my inbox is always open!
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