Alright, listen up. You landed a buyer. High fives all around, pop the cheap champagne… for like, five minutes. Because guess what? The real work just started. Getting that offer is step one. Getting to the closing table with cash in hand? That’s the whole damn marathon.
You think you’re done? Wrong. Dead wrong. Now you gotta navigate the minefield between “Accepted Offer” and “SOLD.” Mess this up, and that buyer walks, your house goes back on the market, and you’re explaining to your Aunt Carol again why you haven’t moved yet.
Let’s cut the crap and get straight to what actually matters right now. Pay attention.
The “Prove It” Money: Earnest Deposit
First thing: the buyer throws down some cash. It’s called earnest money. Think of it as their “I’m serious, dammit” deposit. It shows they have skin in the game. Usually 1-2% of the offer.
This cash doesn’t go straight to your pocket. Hell no. It sits with a neutral third party (like a title company or escrow agent). Why? To keep things fair.
- If the deal closes: Sweet. That money usually counts towards the buyer’s down payment or closing costs.
- If the deal tanks because you messed up (or something legit fails inspection/appraisal contingencies): Buyer probably gets their money back. Sucks for you.
- If the buyer gets cold feet for no good reason and bails: Ding ding ding! You might get to keep that cash. Consider it a “thanks for wasting my time” fee. It won’t make you rich, but it softens the blow of starting over.
Bottom line: Earnest money proves intent. Understand how and when it moves.
Spill the Beans: The Seller’s Disclosure
Okay, time to confess. Not your deepest secrets, but everything you know that’s wrong (or was wrong) with the house. This is the Seller’s Disclosure. It’s basically a CYA document – Cover Your Ass.
Every state has different rules (Google “seller disclosure requirements [your state]”), but the smart play? Over-disclose.
Yeah, it feels weird listing out flaws. “Won’t that scare the buyer?” Maybe. But you know what’s scarier? Getting sued after closing because you hid that leaky pipe under the sink or the fact that the basement floods every spring.
Your agent (hopefully a killer one) knows the local laws. But generally, expect to cough up info on:
- Roof age and condition
- Plumbing nightmares (past or present)
- Foundation cracks
- Termite history
- Any big repairs you’ve done
- Known issues like noisy neighbors or if it’s in a flood zone.
Be brutally honest. They’re gonna find out anyway during the inspection. Rip the Band-Aid off now. It builds trust (weirdly) and protects you later.
Under the Microscope: The Home Inspection
Unless you sold “as-is” (which has its own headaches), the buyer’s bringing in their own hired gun: the home inspector. This person’s job is to find everything wrong with your house. They’re looking for deal-breakers or leverage points for the buyer.
- Shoddy roof? They’ll find it.
- Sketchy wiring? Yep.
- Leaky pipes? You bet.
- Foundation issues? Uh-huh.
- HVAC on its last legs? Absolutely.
The buyer gets the report. If (when) they find stuff, expect another round of negotiation. They might ask you to fix specific things, or more likely, ask for a credit at closing so they can handle it themselves.
Pro Tip: Offering a credit is usually faster. Fixing it yourself takes time, coordination, and opens the door for arguments about the quality of the repair. Time costs you money (mortgage payments, utilities, etc.). Factor that in. Don’t die on the hill of a $500 repair if it speeds up the closing.
The Money Man’s Verdict: The Home Appraisal
If your buyer isn’t paying all cash (most aren’t), their lender orders an appraisal. This is different from the inspection. The appraiser doesn’t care as much about leaky faucets; they care about value. They need to tell the bank, “Yep, this house is worth what the buyer is paying for it.”
They’ll walk the property, measure rooms, check the condition, and compare it to similar homes that recently sold nearby (comps).
- Appraisal = Offer Price (or higher): Perfect. Green light.
- Appraisal < Offer Price: Houston, we have a problem. The bank typically won’t lend more than the appraised value.
Now what?
- The buyer can cough up the difference in cash. (Rare, unless they’re desperate).
- You can lower the sale price to match the appraisal. (Painful, but might be necessary).
- You meet somewhere in the middle.
- The deal dies. Buyer walks (usually gets their earnest money back here).
If the appraisal comes in low, take a hard look at the market and how many other offers you had. If you had a bidding war, maybe you hold firm and relist. If this was your only solid offer after weeks on the market… you might need to swallow your pride and lower the price to keep the deal alive. Starting over SUCKS.
So, congrats on the offer. Seriously. But stay sharp. This next phase is where deals live or die. Navigate these steps like a pro, don’t get emotional, and keep your eyes on the prize: that closing check. Now go get it done.
