Accepting an offer is exciting, but it is not the finish line. Once you and the buyer sign the purchase agreement, your home enters escrow.
For many sellers, escrow feels like the longest part of the transaction because there are several moving pieces happening behind the scenes. While your buyer is completing inspections, securing financing, and working through contingencies, you may be wondering what you should be doing.
The good news is that most of the heavy lifting has already been done. However, there are still a few important steps before you hand over the keys.
Here’s what you can expect during the escrow process.
Escrow Opens
After both parties sign the purchase agreement, escrow officially begins.
An escrow company acts as a neutral third party. They collect important documents, hold funds securely, and make sure every part of the contract is completed before the sale closes.
During this time, you will receive paperwork to review and sign. Your real estate agent will guide you through each document so you know exactly what is required.
The Buyer Completes Their Inspections
One of the first things buyers typically do is schedule home inspections.
Depending on the property, they may order:
- A general home inspection
- Pest inspection
- Roof inspection
- Sewer inspection
- Pool or spa inspection
These inspections help buyers understand the condition of the home before moving forward.
Sometimes inspectors find only minor maintenance items. Other times they uncover repairs that may lead to negotiations.
Do not panic if the buyer requests repairs or credits. This is a normal part of many transactions, and there are often several ways to reach an agreement.
The Home Is Appraised
If the buyer is financing the purchase, their lender will order an appraisal.
The appraiser determines whether the home’s value supports the purchase price.
Most appraisals come in at value, but occasionally they come in lower than expected. If that happens, your agent will discuss the available options with you, which may include renegotiating the purchase price or challenging the appraisal with additional market data.
The Buyer’s Loan Moves Toward Approval
While inspections are happening, the buyer’s lender is also reviewing financial documents and finalizing the loan.
This part of escrow happens mostly behind the scenes.
As the seller, there is usually very little you need to do unless additional information is requested.
Your agent will stay in communication with the lender and escrow officer to monitor the buyer’s progress and help prevent delays.
Contingencies Are Removed
Most purchase agreements include contingencies that protect the buyer.
Common contingencies include:
- Inspection contingency
- Appraisal contingency
- Loan contingency
Once the buyer is satisfied with each requirement, they remove these contingencies in writing.
This is an important milestone because it means the transaction is becoming much more secure.
You’ll Sign Closing Documents
As closing day approaches, escrow will prepare your final paperwork.
You will sign documents transferring ownership of the property and authorizing the sale.
Many escrow companies now offer electronic signing for certain documents, while others require an in-person appointment with a notary.
Your escrow officer will explain exactly what is needed.
Prepare to Move Out
While escrow is wrapping up, it is time to prepare for your move.
Before closing, you should:
- Finish packing
- Remove all personal belongings unless otherwise agreed upon
- Complete any negotiated repairs
- Leave behind items included in the purchase agreement
- Schedule utility transfers
The home should be clean and ready for the new owner before possession changes hands.
Final Walk-Through
Shortly before closing, the buyer will complete a final walk-through.
This is not another inspection.
Instead, it gives the buyer an opportunity to confirm that the home is in the agreed-upon condition, repairs have been completed if applicable, and no unexpected damage has occurred since they made their offer.
Closing Day
Once all documents are signed, the buyer’s loan funds, and escrow records the transaction with the county, the sale officially closes.
At that point:
- Ownership transfers to the buyer.
- You receive your sale proceeds.
- The buyer receives the keys based on the terms of the contract.
Congratulations! Your home sale is complete.
Final Thoughts
Escrow may feel overwhelming at first, but most of the process happens behind the scenes with your agent, escrow officer, lender, and title company working together.
Knowing what to expect can make the experience much less stressful. From inspections and appraisals to signing documents and closing day, each step moves you closer to a successful sale.
When you have an experienced real estate professional guiding you through the process, you can focus on your next chapter with confidence.
Thinking about your next move after selling?
If Rocklin is on your list, download my Moving to Rocklin Guide. You’ll get local insights on neighborhoods, schools, parks, shopping, dining, and everything you need to know before making your move. Whether you’re relocating from another city or moving across Placer County, this guide will help you decide if Rocklin is the right fit for your next chapter.
