If you’ve never sold your home before, you likely still know a bit about the steps involved: You have to prepare it for listing, take photos, and list it for sale. Then there are showings and, hopefully, an offer on your house. But what happens next? First-time home sellers typically know a bit less about what happens between getting an offer and closing on the house. Keep reading for an overview of this part of the process.

Review and Negotiation

When you receive an offer, you and your agent need to evaluate it carefully. The offer will include the buyer’s proposed purchase price, along with any contingencies (like financing, inspection, and other stipulations for the sale), and the timeline for closing. More often than not, sellers will propose a counteroffer to this initial bid, which can involve negotiating the price, moving the closing date, and adding or removing certain contingencies.

For example, a buyer might propose a certain purchase price, with the contingency that the seller will conduct extensive roof repairs before the closing date. The seller might counter with a slightly lower purchase price while placing the responsibility for the roof repair’s in the buyer’s court. Having a real estate agent on your side can provide you with an experienced guide during the negotiation process, ensuring you maximize the value of your home.

Acceptance and Escrow

Once you and the buyer both agree on the terms, the offer becomes official, and the home enters escrow. During escrow, a neutral third party holds both the funds and the documents on behalf of both the buyer and the seller. This provides both parties with peace of mind that all the terms of the sale will be met before transfer of ownership occurs. Typically, the escrow period is 30 to 45 days, but it can vary based on the timeline you and the seller have agreed upon.

Inspections and Appraisals

During the escrow period, the buyer will usually arrange for a home inspection. This can sometimes uncover issues that the buyer will want you to address (like the roof repairs mentioned earlier in the article). Be prepared for repair requests or renegotiation of the price if major repairs are needed. Additionally, the buyer’s lender will require an appraisal to confirm the home’s value; this can also affect the final sale price if it doesn’t match the offer.

Contingencies and Prep for Closing

After the inspection and appraisal are done, both parties will work to meet any remaining contingencies. This can include the buyer securing financing and/or selling a previously owned home, while the seller will need to meet any requested repairs. As you near the closing date, review all closing documents, including the final settlement statement, with your real estate agent to ensure accuracy.

Final Walkthrough and Closing

Before you officially close, the buyer will usually want to do a final walkthrough to confirm the home’s condition is as you agreed and that all repairs have been completed. At the closing appointment, you’ll sign all necessary papers to finalize the sale, including the deed transfer. Once these are signed, the ownership officially transfers to the buyer, and you’ll receive the payment from the sale. Your home sale is now complete!