What Actually Happens After You Go Under Contract?
For many buyers and sellers, getting an offer accepted feels like the finish line. In reality, it’s the beginning of an entirely new phase of the transaction. Once a home goes under contract, there are deadlines, inspections, lender requirements, title work, negotiations, and dozens of moving pieces happening behind the scenes often all at once. And because most people only buy or sell a few homes in their lifetime, many have no idea what to expect after acceptance. Here’s a breakdown of what actually happens once a property goes under contract and what buyers and sellers should prepare for along the way.
Step 1: Earnest Money Is Deposited
One of the first things buyers typically do after going under contract is submit earnest money. Earnest money is a good-faith deposit showing the seller the buyer is serious about moving forward with the purchase. The amount varies by market and price point, but it’s usually held in an escrow account until closing.
For buyers, this is important:
- Missing the earnest money deadline can put the contract at risk
- Funds usually need to be wired or delivered quickly (deadline varies by state)
- Buyers should always verify wiring instructions carefully to avoid fraud
For sellers, earnest money provides reassurance that the buyer is financially committed to the transaction.
Step 2: The Inspection Period Begins
This is one of the most important stages of the contract process. Home inspections are designed to uncover:
- Structural concerns
- Roof issues
- Plumbing or electrical problems
- HVAC concerns
- Water damage
- Safety hazards
- Deferred maintenance
Even well-maintained homes usually have inspection findings. That’s normal. The purpose isn’t to expect a “perfect” report, it’s to better understand the condition of the property before closing. After inspections, buyers may:
- Accept the property as-is
- Request repairs
- Ask for credits
- Renegotiate terms
- Or, depending on the contract, terminate during the contingency period
For sellers, this stage can feel stressful because negotiations often reopen after inspections are completed. The key is staying realistic and solution-oriented rather than emotional.
Step 3: The Appraisal Is Ordered
If the buyer is financing the home, the lender will usually require an appraisal. The appraiser’s role is different from the inspector’s. They are determining whether the home’s value supports the purchase price from the lender’s perspective.
The appraiser evaluates:
- Comparable recent sales
- Property condition
- Square footage
- Upgrades
- Market trends
- Location
A home appraising at value helps the loan continue moving smoothly. But if the appraisal comes in low, buyers and sellers may need to renegotiate. Possible outcomes include:
- The seller lowering the price
- The buyer covering the difference in cash
- Both parties meeting somewhere in the middle
- Challenging the appraisal with additional comps
Low appraisals can create tension, especially in competitive markets where buyers offered aggressively. But they DO NOT necessarily mean the end of the deal. This is an area where it is vital your agent knows how to navigate comps and understands market value negotiation.
Step 4: Title Work and Escrow Move Forward
At the same time inspections and financing are happening, the title company is working behind the scenes. Their job is to ensure:
- The seller legally owns the property
- There are no unresolved liens
- Taxes are current
- Legal ownership can transfer cleanly at closing
Title issues can occasionally delay transactions. Examples include:
- Unknown liens
- Probate complications
- Boundary disputes
- Clerical filing errors
- Missing documentation
Most title issues are solvable, but they can take time to clear. This is one reason experienced agents stay heavily involved after the contract is signed, not just before it.
Step 5: The Lender Verifies Everything Again
One thing that surprises many buyers is how much documentation lenders require during underwriting. Even after pre-approval, lenders often continue reviewing:
- Employment
- Income
- Bank statements
- Credit activity
- Debt-to-income ratios
- Asset verification
This is why buyers are strongly advised NOT to:
- Open new credit cards
- Finance furniture or vehicles
- Change jobs suddenly
- Move large amounts of money between accounts without documentation
A financing issue late in the process can delay, or even derail, closing.
Common Delays That Happen During Escrow
Real estate transactions rarely move perfectly from start to finish. Some common delays include:
- Financing documentation issues
- Appraisal delays
- Inspection negotiations
- Contractor scheduling
- Title complications
- Insurance underwriting delays
- Survey problems
- Repair completion timelines
The important thing to understand is this:
Delays do not automatically mean the deal is falling apart.Many transactions require adjustments and problem-solving along the way. Strong communication between agents, lenders, title companies, and clients often determines how smoothly challenges get resolved.
What Buyers Should Prepare For
Buyers often underestimate how emotionally draining the contract-to-close period can feel. There’s excitement, but also uncertainty.
The best thing buyers can do is:
- Respond to requests quickly
- Stay financially stable during escrow
- Avoid making major purchases
- Keep expectations realistic
- Trust the process and timeline
Patience matters more than most people expect.
What Sellers Should Prepare For
Sellers sometimes assume the hard part is over once they accept an offer. But this is often where flexibility becomes important. Sellers should prepare for:
- Inspection negotiations
- Appraisal concerns
- Buyer questions
- Repair requests
- Moving timeline adjustments
- Potential closing extensions
The smoothest transactions usually happen when both sides remain cooperative and solutions-focused.
Under Contract Doesn’t Mean “Done”
This is one of the biggest misconceptions in real estate. A signed contract is a major milestone, but there are still several important steps before closing day officially arrives. That’s why experienced agents do far more than market homes or write offers. They help manage timelines, solve problems, coordinate communication, and keep transactions moving when unexpected issues arise.
Because after you go under contract, the real work is often just beginning.
But NO MATTER WHAT stage of a transaction we're in, Verity Group will get you through it! That's our promise to you!
