You have spent a long time looking for a house and you finally found the one you want. Your real estate agent has sent your offer to the seller. Now you have to wait to see if the seller will accept your offer. This can be a stressful time.
It is normal to feel anxious while you are waiting to hear from the seller. You might find yourself constantly checking your phone for updates from your agent. You might wonder what is going on and if the seller is going to accept your offer.
To help you during this time let’s look at how the real estate process works. We will talk about the signs that your offer on a house will be accepted. We will also go over what you need to do if your offer is accepted and how to negotiate if there are problems with the house.
Table of Contents
Part 1: Understanding the Real Estate Process
One of the common things that buyers worry about is time. Sellers do not have forever to think about your offer. There are rules that say how they have to respond.
How Long Do Sellers Have to Respond to an Offer on a House?
When you ask how long sellers have to respond to an offer on a house, the answer is usually in the contract you signed. In parts of the United States the contract includes a deadline for the seller to respond to your offer on a house. If the seller does not respond by that time, your offer on a house is no longer valid. You will get your deposit back. This prevents sellers from keeping your offer on a house while they look for a better one.
How Long Does a Seller Have to Accept an Offer on a House?
Usually, the seller has 24 to 72 hours to accept or make a counteroffer on your offer on a house. The situation can affect how long it takes.
If you make an offer on a house on a Friday, the seller’s agent might not show it to them until Monday. In a hot market, the seller’s agent might set a deadline for all offers on a house. If you are buying a house that the bank owns the process can take longer.
Part 2: Signs That Your Offer on a House Will Be Accepted
While you are waiting to hear from the seller there are things that can indicate that your offer on a house will be accepted. Here are some positive signs:
1. The Seller’s Agent Calls Your Lender
If the seller’s agent calls your lender to ask about your loan it is a sign that your offer on a house will be accepted. They are checking to make sure you can afford the house.
2. The Agents are Talking to Each Other
If the seller’s agent is talking to your agent a lot it means that your offer on a house is being considered. If the agents are not talking it might be a bad sign.
3. The House is No Longer Being Shown
If the house is suddenly marked as “pending” or the open house is canceled it could mean that the seller has accepted an offer on a house. If you are the one making an offer on a house it is probably yours.
4. The Seller Asks for Changes
If the seller asks you to make small changes to your offer on a house, such as changing the closing date it is a good sign. They are trying to work with you to make the sale happen.
5. You Made a ‘Clean’ Offer
If you made a strong offer on a house with few conditions the seller will like that. They want a smooth transaction.
6. The Seller Sends You Documents
If the seller sends you documents about the house before accepting your offer on a house it means they are getting ready for the next steps.
7. You Get a Counteroffer on Your Offer on a House
If you get a counteroffer on your offer on a house it means you are still in the running. If the counteroffer is reasonable it is a sign that your offer on a house will be accepted.
Part 3: Getting the Official Word
You will know that your offer on a house has been accepted when your agent calls you and says that the seller has verbally agreed to your offer on a house. This is not official until the seller signs the contract.
You will officially have an accepted offer on a house when the seller signs the contract and your agent gets a copy of it.
Part 4: What to Do Next
Once your offer on a house is accepted, you will start the process of closing the sale. This usually takes 30 to 45 days. Here is a list of things to do:
Step 1: Pay Your Deposit
You need to pay your deposit within a few days of your offer on a house being accepted. Make sure you follow the instructions in your contract.
Step 2: Finalize Your Loan
Call your lender immediately to confirm you are proceeding with the loan, and ensure you fully understand your locked-in interest rate and terms.
Step 3: Inspect the House
Hire a home inspector to look at the house. This is a step to make sure you are not buying a house with major problems.
Step 4: Get an Appraisal
Your lender will order an appraisal of the house. This is to make sure the house is worth what you are paying for it.
Step 5: Get Insurance
Shop around for insurance quotes and choose a policy. Send the proof of insurance to your lender.
Step 6: Review Documents
Read the documents about the house and the neighborhood. Make sure you understand the rules and any potential issues.
Step 7: Set Up Utilities
Call the utility companies. Set up service in your name. Schedule the utilities to start the day before you close on the house.
Step 8: Final Walk-Through
Walk through the house with your agent before you close. Make sure everything is in good condition and that the seller has left the appliances they agreed to leave.
Step 9: Closing Day
Sign the papers and get the keys to your new house.
Part 5: What to Do If the Inspection Finds Problems
If the inspection finds problems with the house, do not panic. Here is what you can do:
1. Identify the Major Issues
Look at the inspection report. Identify the major problems. Do not worry about things like a loose door hinge.
2. Negotiate with the Seller
Talk to the seller about the problems. See if you can come to an agreement. You can ask them to fix the problems or give you a credit.
The important things to look at are the roof, the HVAC system, the plumbing and the foundation. If there are problems with any of these, you need to negotiate with the seller.
Electrical issues are a problem. This includes dangerous wiring like knob-and-tube or a fire-hazard electrical panel.
Plumbing and foundation problems are also serious. These can be water damage, active pipe leaks or a cracked and sinking foundation.
3. The Three Ways to Negotiate
If you find a defect in the house your agent will submit a formal Request for Repairs. You generally have three options to deal with the plumbing issues or the foundation problems.
Option A is to ask the seller to fix the plumbing issues or the foundation problems. You can ask the seller to hire a contractor to fix the issue before closing day.
The seller is moving out. They want to fix the electrical or plumbing issues or the foundation problems as cheaply and quickly as possible. You might get a repair that is not done well.
Option B is to ask for a Seller Credit. This is usually the best option. Instead of asking them to fix the electrical or plumbing issues or the foundation problems you get an estimate from a contractor. For example a new roof might cost $10,000. You ask the seller to give you a $10,000 credit at closing.
This is an option because it lowers your out-of-pocket closing costs. You can also hire the contractor of your choice after you move in. This ensures that the job is done right.
Option C is to ask for a Price Reduction. You can ask the seller to drop the purchase price of the home by $10,000.
Dropping the purchase price by $10,000 only changes your mortgage payment by about $50 to $70. It does not give you the $10,000 cash that you need to pay the roofer. This is why Option B is usually better.
4. Be Prepared to Walk
If the seller refuses to fix the issues, refuses to give you a closing credit, and will not lower the price, you have to make a tough choice. You have the right to walk away from the deal and get your Earnest Money Deposit fully refunded.
Sometimes, the best real estate transaction is the one you do not make. You should keep your emotions in check. Listen to your real estate agent’s advice. Do not buy a house that will cost you a lot of money to fix.
