Other interested buyers will make backup offers in case the first offer falls through. After your offer has been accepted, you're officially in the homestretch of the buying process. Once the purchase agreement is signed, it becomes legally binding.
“If your offer is accepted, the sale process begins, a deposit is made within three days, and inspections and appraisal are typically completed within 17 days,” says broker Brandon Brown. “Loan approval is then completed before 21 days, with the closing of the property happening around day 30.”
Usually, the closing date will be 30 – 60 days after the seller accepts the offer.
A closing date is established
Your purchase offer will include a date by which the deal needs to be completed. In most cases this is within 30 to 60 days after the offer is accepted. The closing date is when you sign paperwork and take ownership of the home.
Some buyers may be able to negotiate an immediate possession date. This means as soon as the transaction is closed and the deed is recorded, the buyer can move in. A few other common buyer possession dates may be 15 days, 30 days, 60 days, or even 90 days after closing, depending on how much time the seller needs.
Once your offer is accepted, the sale contract and purchase agreement will be updated to reflect any negotiated terms, and you and the seller will sign it. This is called “going under contract,” meaning both parties have agreed to proceed with the transaction.
Your contract states how long you have to perform inspections. On average, buyers request 7-10 days. It's important to schedule inspections ASAP. If you set them up toward the end of the inspection period, you risk not finding an inspector in time or making a rushed decision.
California law, on the other hand, limits the amount of earnest money that can go to a seller should the deal fall through to 3% of the purchase price. There are some exceptions, Stuart says, but this law makes it so few earnest money deposits exceed 3% in the Golden State.
The process of applying for and closing on a mortgage contains several different steps and typically takes anywhere from 30 to 45 days. Your closing can get delayed if there are issues with the appraisal, inspection, title or financing.
The short answer is yes, a buyer is free to withdraw their offer at any time. However, depending on the contract, there may be penalties for doing so. Many purchase agreements typically include various contingencies meant to protect both parties from a deal that has gone wrong.
Is Earnest Money Refundable? Earnest money isn't always refundable. The good news for buyers is in most situations, as long as a buyer acts in good faith, earnest money is refundable. As long as any contract agreements are not broken or decision deadlines are met, buyers usually get their earnest money back.
The rule of thumb is usually between 5 and 10 percent of the home price. Bear in mind that you could lose the money if the deal falls through, so it's important not to put up so much that you'd be ruined if you lost the cash.
The Seller Will Look Over Your Amount
One of three things can happen afterward: it is accepted as-is, the seller will make a counteroffer, or your offer will be declined. Once your offer has been submitted, you will typically hear back in 24 to 48 hours, as the seller's timeline should be given for reviewing offers.
Earnest money deposits are usually made with a cashier's check or wire transfer. Personal checks are rarely accepted.
The timeline between making an offer and closing a sale can vary. For home purchases financed with mortgages, the average time to close is 44 days, according to ICE Mortgage Technologies, a mortgage advisory and technology platform. Closings can be as quick as 30 days, though, especially in all-cash deals.
“If all of the buyer's legitimate deadlines have expired and the buyer is considered to be in default of the contract, the seller can elect to keep the earnest money as liquidated damages and agree to cancel the contract,” says Horner.
Earnest money is returned to the buyer at closing. The buyer can choose whether to apply the funds toward a down payment, closing costs or other settlement costs. But in some cases, if certain provisions of the purchase contract are broken, the buyer will have to forfeit the earnest money and the seller will keep it.
According to some industry professionals, around 1 in 10 home sales fall through after the inspection. This statistic can vary regionally and depend on factors such as the age of the homes in the area. But nationally, about 10-15% of buyers decide to walk away from a purchase contract because of inspection findings.
Closing on a house can typically take 30 – 60 days. According to ICE Mortgage Technology, as of August 2024, the average time to close on a home purchase was 43 days.
It could be as quick as six weeks and it could take up to six months. Let's take a look as what's involved in buying a home and how long each stage should take.
Some offers could be accepted in 24-48 hours; other offers might take more than a week to get a response from the seller. Generally, though, a seller's agent will take about one to three days to respond after you have made an offer. Certain factors can influence the seller's response time and cause an unusual delay.
After an accepted offer to buy a home – the first thing you will have to do is to wire an earnest money deposit to escrow. This amount will stay in escrow until the transaction concludes. The earnest money deposit is not an extra amount you pay to enter escrow, it applies to the purchase price at closing.
Most sellers hope to have multiple offers, but sometimes it's best to take the first offer you receive. It may be tempting to hold out for a better price when selling your home, especially when your home is newly listed.