Under Contract! What Sellers Should Expect Between Offer and Closing
What You’ll Learn
- The usual sequence of steps between an accepted offer and closing
- How earnest money and contingency deadlines generally work
- What sellers do during the buyer's inspection, appraisal and financing
- How title work, your mortgage payoff and disclosures fit in
- Why insurance, maintenance and the possession date matter until closing
An accepted offer is a big milestone, but it isn't the finish line. Between the signed contract and the closing table, there are deposits, deadlines, inspections, an appraisal if the buyer is financing, title work and a move to plan. Much of it happens on the buyer's side, yet several steps still need something from you.
This guide covers only the stretch from accepted offer to closing, from the seller's side. Contract forms, deadlines and closing practices vary by state and by contract, so treat this as a map for conversations with your agent and, where appropriate, a real estate attorney. If you want the full journey from listing prep onward, the A4H walkthrough on how to sell your home step by step covers it.
The Big Picture: What Happens After You Accept an Offer
Every sale is different, but most financed purchases move through a similar sequence. Some steps overlap, and cash sales often skip the appraisal and loan steps.
- Contract signed and delivered. The "effective date" in the contract often starts the clock on deadlines.
- Earnest money deposited. The buyer puts down a deposit with the party named in the contract.
- Inspection period. The buyer's inspector visits, and the buyer may ask for repairs or credits.
- Appraisal and underwriting. If the buyer is financing, the lender orders an appraisal and reviews the buyer's file.
- Title work and payoff. The closing agent searches title and requests your mortgage payoff.
- Final walkthrough. The buyer checks the home shortly before closing.
- Closing. Documents are signed, funds move, and ownership transfers according to local practice.
Your job through all of this is mostly to respond on time, keep the home in the condition the contract requires, provide access when needed and plan your move.
Earnest Money: The Buyer's Deposit
Soon after the contract is signed, the buyer typically delivers an earnest money deposit. It shows good faith and is usually held by a neutral party named in the contract, such as an escrow company, title company, closing attorney or brokerage, depending on the state. It is generally not paid to the seller directly.
At closing, the deposit is typically applied toward the buyer's side of the transaction. If the deal falls apart, what happens to the money depends on the contract terms, including which contingencies were in place and whether deadlines were met. Ask your agent to confirm the deposit was received, and keep that confirmation with your records. The A4H explainer on earnest money covers how deposits generally work.
Contingency Periods: The Deadlines That Matter Most
Most contracts include contingencies, which are conditions that must be met or waived for the sale to move forward. Common ones include:
- Inspection or due diligence. Time for the buyer to inspect and decide how to proceed.
- Appraisal. Protection for the buyer if the home appraises below the price, where included.
- Financing. Time for the buyer to obtain final loan approval.
- Title. Time to review the title report and raise objections.
- Sale of the buyer's home. In some contracts, the purchase depends on the buyer selling another property.
Each contingency usually has its own deadline and its own notice rules. Missing a deadline, on either side, can change what each party is allowed to do. Ask your agent for a written list of every date in your contract and who is responsible for each one. The A4H guide to real estate contingencies explains how these clauses generally work.
The Buyer's Inspection
The inspection is often the first big event after contract. The buyer's inspector may spend a few hours in the home checking the roof, structure, systems, plumbing, electrical and more. Specialized inspections, such as for pests, radon, a septic system or a well, may happen on separate visits.
A few ways to help it go smoothly:
- Make sure the attic, crawl space, electrical panel, water heater and furnace are easy to reach.
- Leave utilities on and pilot lights lit so systems can be tested.
- Plan to be away during the inspection, which is common practice.
- Secure pets and valuables.
After the inspection, the buyer may send a request for repairs, a credit or a price adjustment, depending on the contract. You usually have choices in how to respond. The A4H guide on how sellers should handle repair requests walks through them.
The Appraisal
If the buyer is using a mortgage, the lender typically orders an appraisal to support the loan amount. The appraiser works for the lender's process, not for you or the buyer. You may need to provide access, and some sellers share a short list of updates and improvements through their agent.
If the appraisal comes in at or above the contract price, the sale usually continues. If it comes in low, the contract terms and the buyer's loan program shape what happens next. The A4H guide to options for sellers when the appraisal comes in low covers that situation.
The Buyer's Financing
While the appraisal is happening, the buyer's lender is also reviewing income, assets, credit and the property. This stage is called underwriting, and it often runs in the background until the loan is cleared to close. All loans are subject to lender approval.
You generally won't see the buyer's financial details, and you shouldn't need to. Updates usually come through the agents. If the financing deadline approaches and the buyer needs more time, the buyer's side may ask for an extension in writing. Whether to agree is your decision, and it's worth talking through with your agent and, where appropriate, a real estate attorney.
Title Work, Your Payoff and Disclosures
The closing agent, which may be a title company, escrow company or attorney depending on the state, typically runs a title search. It looks for liens, judgments, unpaid taxes, recorded easements or other issues that need to be cleared before ownership can transfer. Your agent and closing agent can tell you if anything turns up that needs your attention.
If you have a mortgage or home equity line, the closing agent usually requests a payoff statement from your lender. That figure is often different from the balance on your monthly statement, because it includes interest through the payoff date and any fees. If you have a home equity line, ask how it will be closed out at closing.
Other items that may come up during this stretch:
- HOA or condo documents and any transfer or resale certificate, where applicable
- Survey questions, if the buyer or lender orders one
- Any state-required disclosures that weren't already delivered
If you learn something new about the home after the contract is signed, such as a leak or a failed system, tell your agent promptly. Disclosure rules vary by state, and a real estate attorney can explain what applies to you.
Keep the Home Maintained and Insured
Until closing, the home is still yours. Many contracts require the seller to keep the property in substantially the same condition as when the contract was signed, with normal wear and tear excepted. That usually means:
- Keep your homeowners insurance in force through closing. Don't cancel it until the closing agent confirms the sale is complete.
- Keep up with lawn care, snow removal, pool care and routine maintenance.
- Leave utilities on through closing and the final walkthrough.
- Report damage or a system failure to your agent right away. The contract usually spells out how damage before closing is handled.
If you move out before closing, check how a vacancy may affect your insurance. Some policies limit coverage when a home sits empty, and terms vary by policy, carrier and state. A licensed insurance agent can explain yours.
Listing Status, Showings and Backup Offers
Once you're under contract, your listing status typically changes, often to "contingent" or "pending," depending on local listing rules. Some sellers keep showing the home and accept backup offers, which only come into play if the first contract ends. Whether that's allowed or wise depends on your contract, local practice and your goals. Ask your agent how status and showings work in your market.
Planning Your Move
Check the contract for the possession date. In many sales the buyer gets possession at closing, but some contracts allow a short rent-back or a later possession date. Possession terms vary by contract and by local custom, so confirm yours before booking movers.
A few planning points:
- Know what stays with the home. Fixtures generally convey unless the contract excludes them, and any items the contract says stay must be left.
- Schedule utilities to transfer or end after closing, not before.
- Set up mail forwarding.
- Leave the home in the condition the contract requires.
The A4H seller's checklist for moving out before closing covers these in more detail.
The Final Walkthrough and Closing Day
Shortly before closing, the buyer typically does a final walkthrough to confirm the home's condition, that agreed repairs were done and that items that convey are still there. The A4H guide to getting ready for the buyer's final walkthrough explains how to prepare.
Closing itself varies widely. In some states, the seller signs at an attorney's office. In others, sellers sign ahead of time with an escrow or title company, or sign remotely or by mail where allowed. Ask your closing agent what to bring and how and when your proceeds will be sent. The A4H guide to seller closing day, your payoff and when you get paid covers the details, and the A4H explainer on seller closing costs can help you estimate net proceeds.
One caution: criminals sometimes send fake wiring instructions by email. Confirm any instructions for your proceeds by calling your closing agent at a phone number you've verified independently, not one from the email. The A4H guide on wire fraud in real estate explains the warning signs.
A Quick Seller Checklist for the Under-Contract Stretch
- Get a written list of every contract deadline from your agent.
- Confirm the earnest money deposit was received.
- Prepare the home for the inspection and appraisal visits.
- Respond to repair requests within the contract deadline.
- Share your mortgage and HOA information with the closing agent when asked.
- Keep the home insured, maintained and with utilities on.
- Plan the move around the possession date in the contract.
- Confirm closing details and verify any wiring instructions by phone.
Frequently Asked Questions
How long does it usually take to go from accepted offer to closing?
It varies. Financed purchases often take longer than cash sales because of the appraisal and underwriting. The closing date in your contract is the target, but extensions sometimes happen. Your agent can tell you what's typical in your area.
Can the buyer back out after the contract is signed?
Possibly, depending on the contract. A buyer may be able to cancel within a contingency period, such as the inspection or financing period, under the contract's terms. What happens to the earnest money depends on those terms and whether deadlines were met.
Should I cancel my homeowners insurance once I'm under contract?
No. Keep coverage in place until the sale has closed and the closing agent confirms it's complete. You're typically responsible for the home until ownership transfers.
Do I need to be at the home for the inspection or appraisal?
Usually not. It's common for sellers to be away during the inspection and appraisal. Your agent can coordinate access.
The Bottom Line
Going under contract shifts the work from attracting a buyer to getting to closing. Track every deadline, respond on time, keep the home insured and in the condition the contract requires, and plan your move around the possession date. Most surprises are easier to handle when they're raised early with your agent and closing agent.
This article is general information, not legal, tax, lending or financial advice. Contract terms, deadlines, disclosure rules and closing practices vary by state and by contract. Talk with your agent and, where appropriate, a real estate attorney about your specific situation. Advice4Homeownership is a publisher, not a lender.
