7 Key Things that Happen Once Your Offer to Buy a Home is Accepted

Buying a home in California is not an everyday routine for most people. If you are not a Realtor or are a first time home buyer, you may wonder about what happens next when the Seller(s) finally accept your offer to purchase their home. Discover the 7 key things that happen once your offer to buy a home is accepted. Buying a home no longer has to be a mystery.

1. Escrow is opened.
After all parties are in agreement as demonstrated by a signed Residential Purchase Contract (RPC) and any pertinent Counter-Offers, the listing agent contacts Escrow and opens an account for the Buyer(s) & Seller(s). If the Buyer(s) offered to make a good faith deposit, then that deposit is forwarded to the Escrow Company within three days of acceptance or as specified in the RPC.

2. The investigation period begins.
Day 1 of your investigation period begins on the date the offer was accepted by both parties. The Buyer(s) is entitled to find out as much information on the subject property as they can before fully consenting to the purchase the property. The default time period is 17 days in California, however, the Buyer(s) may extend or shorten that time period as long as the Seller(s) mutually agree. The investigation includes but is not limited to the reviewing of written property disclosures made by the Seller(s), Buyer(s) visits to the city or county for permits/zoning issues/etc., reviewing of the property's Preliminary Title Report, the performance of a licensed home inspection, the completion of a termite inspection, verifying Natural Hazards in the area, and more. It is the Buyer(s) responsibility to satisfy themselves to all aspects of the property. During this time period, the Buyer(s) must also request any needed repairs or corrections as determined by their investigation. Seller(s) are not obligated to make any repairs/corrections, however, at the same token, Buyer(s) are not obligated to purchase the property if they deem that the condition of the home is not what they expected prior to their investigation. The Buyer(s) must be very aware that they do not exceed the 17 days otherwise they can no longer back out of the sale based on the home/neighborhood's status without defaulting on the RPC; they may be subject to losing their deposit to the Seller(s) for failure to adhere to the agreement.

3. The appraisal is ordered.
The Buyer(s)' can choose the appraisal company or leave it up to their loan officer to recommend a company. Once the appointment is set with the Seller(s), the appraiser will come to take measurements & photos of the property. The appraiser will then do his research and find similar properties sold within the same area usually in the last six months. This is the price value that the lenders use to help determine whether or not they can fund the proposed loan amount. The Buyer(s) usually pays for this service as soon as it is rendered.

4. Loan documents are signed.
A Notary will assist the Buyer(s) in signing the documents for the loan. By this point, the Buyer(s) have familiarized themselves with their loan and the loan officer has explained all terms of the loan to the Buyer(s). The Notary simply is a witness their acceptance of the financing terms. The Buyer(s) usually pays for this service at the close of escrow.

5. The walk-thru date is set.
The Realtor representing the Buyer(s) coordinates between the Seller(s) and Buyer(s) to set up a walk-thru date. It usually occurs within 5-7 days of the proposed close of escrow. This is when the Buyer(s) can re-inspect the property only to verify that the overall condition of the property has not changed (i.e. no major trees were uprooted from the landscaping, no damage has occurred to the home, etc.). Also, the Buyer(s) can confirm that all agreed upon repairs to the home were completed by the Seller(s).

6.The loan funds.
Once the bank releases the fund to escrow, escrow facilitates the recording of the grant deed in order to officially transfer ownership to the Buyer(s) known as the "closing of escrow." After closing, escrow then sets up the forwarding of the monies to all participating parties.

7. The Buyer(s) gain possession.
Depending on the prior agreement, the Seller(s) must then hand over the keys at the close of escrow and the Buyer(s) gain possession of the property.

The Real Estate Transaction can be tedious especially when it is you either buying or selling your home. Just remember to fix your eyes on your ultimate goal and the transaction will be over in a wink.

Keep in mind that the buying process varies from state to state. This is not to be taken as an all inclusive list of all that occurs in a purchase transaction. Always consult with your Realtor for more specific information.