From Accepted Offer to Closed Escrow: What You Can Expect

Congratulations! Your offer has been accepted, and you’re officially in escrow. While this is an exciting milestone, there are several important steps that take place before you receive the keys to your new home. Here’s a simple timeline of what to expect from accepted offer to closing day.

Day 1: Escrow Opens

Once the seller accepts your offer, escrow is opened. Escrow is a neutral third party that manages the transaction, ensuring all terms and conditions of the purchase agreement are met before ownership transfers.

Within 3 Days: Earnest Money Deposit

The buyer is required to submit their good faith deposit, also known as the earnest money deposit, within three days of acceptance. This deposit demonstrates the buyer’s commitment to purchasing the property and is typically applied toward the down payment and closing costs.

Within 14 Days: Property Inspections

The inspection period is one of the most important parts of the transaction. Buyers have the opportunity to thoroughly evaluate the home’s condition.

Home Inspection

A professional home inspector will examine the property’s major systems and components, including the roof, plumbing, electrical, HVAC, and structure. Home inspections typically last about 3 hours, depending on the size and condition of the home.

Termite Inspection

A termite and pest inspection checks for wood-destroying organisms and potential damage. This inspection generally takes about 1 hour to complete.

Appraisal Inspection

If the buyer is obtaining financing, the lender will order an appraisal. A licensed appraiser will visit the property to determine its market value and ensure it supports the loan amount. Appraisal appointments typically take about 1 hour.

Within 21 Days: Loan Approval

During escrow, the lender reviews the buyer’s financial documents, appraisal, and other requirements. In many transactions, the buyer’s loan approval is completed within 21 days, bringing the transaction one step closer to closing.

Close of Escrow

Once all contingencies have been removed, loan documents are signed, and funds are received, escrow officially closes. Ownership is transferred, and the buyer becomes the new homeowner.

Move-Out and Utility Transfer

For sellers, moving out on time is essential to ensure a smooth transition. After vacating the property, it’s recommended to schedule utility disconnections or transfers for one day after move-out. This helps avoid any interruption during the buyer’s final walkthrough and move-in process.

Final Thoughts

The escrow process involves several important milestones, but each step is designed to protect both buyers and sellers. Understanding the timeline helps reduce stress and ensures everyone is prepared for a successful closing. Before you know it, you’ll be celebrating the close of escrow and the start of an exciting new chapter in your new home!