When your home goes “under contract,” it can feel like a huge step toward completing the sale. However, this is just the beginning of a series of important steps that both the buyer and seller must navigate before reaching closing day. Each phase of this process is essential for ensuring a smooth and successful transaction. Let’s explore what happens after a home goes under contract and what you can expect.

At Team Nelson, we guide you through every stage of selling your home to ensure a hassle-free experience. Here’s what to anticipate after your home is under contract.

1. Earnest Money Deposit (EMD)

Once a buyer’s offer is accepted, they typically submit an earnest money deposit. This deposit is a sign of good faith, showing the buyer’s serious intent to follow through with the purchase. The earnest money is held in an escrow account and is usually applied toward the buyer’s down payment or closing costs.

Key Points to Keep in Mind:

• The amount of the deposit can vary but is often between 1% to 3% of the purchase price.
• It’s important to ensure the terms surrounding the earnest money are clear. The deposit could be refundable or non-refundable based on how contingencies are handled.

2. Home Inspections and Appraisals

After the contract is signed, the buyer will schedule a home inspection. A licensed inspector checks the property for structural issues, electrical problems, and other areas that might need attention. Based on the inspection report, the buyer might request repairs or concessions.

Similarly, if the buyer is financing the purchase through a mortgage, their lender will require an appraisal to determine the fair market value of the home. The appraisal ensures the lender that the property is worth the loan amount.

Things to Consider:

• If issues are found during the inspection, buyers often request repairs or a credit at closing to cover the costs of fixing the problems.
• A low appraisal can lead to renegotiations, especially if the appraised value is lower than the agreed-upon sale price.

3. Negotiating Repairs or Credits

Once the inspection report is completed, the buyer may negotiate with the seller for certain repairs to be made or request a price reduction to cover the costs. This is an important step, as unresolved issues could lead to delays or even cancellation of the contract.

What Sellers Should Do:

• Be prepared to negotiate on necessary repairs. Sometimes offering a credit is more efficient than handling the repairs yourself.
• Consult your real estate agent to determine whether the buyer’s requests are reasonable and how to approach any repair negotiations.

4. Final Walkthrough

Before the closing date, the buyer will perform a final walkthrough of the property. This ensures that everything is in the agreed-upon condition and that any repairs have been completed as promised.

What to Expect:

• The final walkthrough typically occurs a few days before closing.
• The buyer will check that the home is in the same condition as when the offer was made and that all agreed-upon repairs have been completed.
• Make sure the home is clean and ready for the new owners, as this sets the tone for a smooth closing.

5. Closing the Sale

The final step in the process is closing. This is where all the legal paperwork is signed, and the title of the property is officially transferred to the buyer. At this point, the buyer will pay the remaining funds, and the seller will receive the proceeds from the sale.

Steps at Closing:

• Both the buyer and seller will sign the necessary documents, including the deed transfer.
• Funds are exchanged, and the buyer’s financing is finalized.
• Once all the paperwork is complete, the keys are handed over, and the sale is officially closed.

Selling a home involves several important steps after going under contract. From managing the earnest money deposit to negotiating repairs and completing the final walkthrough, it’s essential to stay proactive and organized throughout the process. Each stage is crucial for ensuring a successful sale and a smooth transition for both parties.

At Team Nelson, we’re here to help you navigate every phase of the home-selling journey. Whether you’re in the early stages of listing your home or preparing for closing, our team is ready to provide expert guidance. Explore more of our blog posts for additional tips on selling your home, or contact us today to get started. Let us help you close the deal with confidence!