Making an offer on a house is an exhilarating step in the home-buying process. After securing financing, attending open houses, and working closely with your agent, you’ve found a place to call home. However, before celebrating, it’s essential to understand the next steps. Here’s what to expect after submitting your offer.
Seller’s Response: Three Possible Outcomes
Rejection of Your Offer
If the seller rejects your offer, it’s important not to be discouraged. Your agent can provide feedback from the listing agent to help you understand why the offer was insufficient. This information can be invaluable for crafting stronger offers in the future.
Counteroffer from the Seller
Receiving a counteroffer can feel like a strategic game of chess. This indicates that your offer has caught the seller’s interest, but they’re looking for specific adjustments. Typical requests in a counteroffer include a higher price, changes to contingencies, or modifications to the closing date.
You can accept the counteroffer, reject it, or counter with your own terms. This negotiation may continue until both parties reach a satisfactory agreement. Preparing for counteroffers with your agent is crucial. Discuss your maximum budget, flexibility on contingencies, and preferred closing dates in advance.
Acceptance of Your Offer
The smoothest outcome is the seller accepting your offer. However, this doesn’t mean the process is complete. Once the seller formally accepts, you enter the “under contract” phase, where both parties commit to moving forward with the deal.
During this stage, all contingencies attached to your offer must be met. Properties listed as “under contract” are still technically available until the sale is finalized, allowing other interested buyers to submit backup offers.
Steps to Finalize the Purchase
Depositing Earnest Money
After acceptance, the first step is to deposit your earnest money into an escrow account. This deposit shows the seller you’re serious about closing the deal. In return, the seller agrees to take the home off the market. The earnest money will be applied toward your down payment or closing costs when the sale is finalized.
Home Inspection
The timeline for inspections varies, but it’s a critical part of the closing process. A thorough home inspection allows you to request repairs, ask for seller concessions, or renegotiate your offer. If your contract includes an inspection contingency, you have the option to back out of the deal and reclaim your earnest money if the property has significant issues.
Securing Financing
Contact your mortgage lender to finalize the details of the purchase. Early pre-approval can streamline this step, ensuring a smoother closing process. Confirm all financial arrangements to ensure there are no last-minute surprises.
Title Search
A title search is conducted to ensure there are no legal obstacles to purchasing the home. This search generates a report detailing the property’s history, providing you and your lender with essential information.
Closing the Deal
As closing day approaches, several legal documents will be prepared to transfer ownership from the seller to you. You’ll also pay closing costs at this time. Once all documents are signed and funds in escrow are distributed, the home is officially yours.
We Are Here to Support You
Navigating the post-offer phase can be complex, but understanding the steps involved can help you feel more prepared. From dealing with counteroffers to finalizing the closing process, each step brings you closer to owning your new home. For personalized guidance and support throughout your home-buying journey, contact Berkshire Hathaway HomeServices at (310) 373-0021. We’re here to help you every step of the way.