Under Contract: What Happens Between Offer and Closing

Congratulations. You have accepted an offer on your home. But the sale is not done yet. The period between accepting an offer and closing day is one of the most important phases of the entire selling process, and it is where many deals encounter unexpected challenges.

In New Jersey, the typical timeline from accepted offer to closing is 45 to 60 days. During those weeks, several critical steps need to happen: inspections, appraisals, attorney review, and the final walkthrough. Understanding what happens during this period will help you navigate it with confidence and avoid common pitfalls.

After guiding more than 636 families through this phase in Burlington County and across South Jersey, I have seen it all. Here is exactly what happens when your home is under contract and what you need to do to make it to closing day smoothly.

What Does "Under Contract" Mean?

When your home is under contract, it means you have accepted a buyer's offer and both parties have signed a purchase agreement. The home is no longer actively marketed, but the sale has not yet closed. The home is effectively "pending" while the buyer completes their due diligence and finalizes their financing.

Being under contract is a significant milestone, but it is not a done deal. Contingencies still need to be satisfied, and the deal can still fall through if certain conditions are not met. That is why it is important to stay engaged and work closely with your agent during this period.

Week 1 to 2: The Home Inspection

The home inspection is typically the first major event after going under contract. The buyer will hire a licensed home inspector to evaluate your property's condition from foundation to roof.

What the Inspector Looks At

A standard home inspection covers:

• Roof, gutters, and downspouts
• Foundation and structural components
• Heating and cooling systems (HVAC)
• Plumbing systems and fixtures
• Electrical systems and panels
• Windows, doors, and insulation
• Attic, basement, and crawl spaces
• Interior walls, ceilings, and floors

In New Jersey, many buyers also order additional inspections for:

• Radon testing: Radon is a concern in many parts of New Jersey, including Burlington County.
• Termite/pest inspection: Wood-destroying insect inspections are common in New Jersey.
• Well and septic testing: Required for homes with private wells and septic systems.
• Mold inspection: Sometimes ordered if there are signs of moisture issues.

How to Handle Inspection Requests

After the inspection, the buyer will submit a request for repairs or a credit. Here is how to approach it:

• Safety issues: Address these. A faulty electrical panel, a leaking roof, or a gas leak are legitimate concerns that should be fixed.
• Major systems: If the HVAC or water heater is near the end of its life, expect the buyer to ask for a credit or replacement.
• Minor issues: A dripping faucet, a cracked window, or a loose doorknob are easy and inexpensive to fix. It is usually worth making these repairs to keep the deal moving.
• Normal wear and tear: You are not obligated to fix everything. Cosmetic issues like worn carpet or minor scuffs on walls are normal wear and tear.

Your agent should help you evaluate each request and determine which repairs to make, which to negotiate, and which to decline. The goal is to find a resolution that keeps the deal together while being fair to both parties.

Week 2 to 3: Attorney Review

New Jersey is one of the few states that requires a real estate attorney to handle the closing. Once the offer is accepted, both parties typically have a designated period (usually 3 to 5 business days) for their attorneys to review the contract.

During attorney review, your attorney will:

• Review the purchase agreement for any legal issues.
• Ensure the title is clear and there are no liens or encumbrances on the property.
• Review the seller's disclosure statement for accuracy.
• Address any legal questions or concerns raised by the contract.

Your agent should coordinate with your attorney to ensure a smooth process. If there are issues with the title or the contract, your attorney will work with the buyer's attorney to resolve them.

Week 3 to 4: The Appraisal

If the buyer is financing the purchase, their lender will order an appraisal to confirm the property is worth the loan amount. The appraiser is a neutral third party who evaluates the home's value based on comparable sales, condition, location, and market trends.

Here is what to expect:

• The appraiser will schedule a visit to your home, typically lasting 15 to 30 minutes.
• They will take photos, measure the home, and note the condition and features.
• They will compare your home to recent sales of similar properties in your area.
• They will produce a written appraisal report with their opinion of value.

Most appraisals come in at or near the contract price. If the appraisal comes in below the contract price, you have several options:

• Reduce the price: Lower the price to the appraised value.
• Ask the buyer to make up the difference: The buyer can bring additional cash to cover the gap.
• Meet in the middle: Split the difference between the contract price and the appraised value.
• Dispute the appraisal: Your agent can provide additional comparable sales to challenge the appraisal.

If the buyer has an appraisal gap guarantee in their offer, they have already agreed to cover a certain amount of the difference, which simplifies the process.

Week 4 to 6: Financing and Contingency Period

While the appraisal is being completed, the buyer is also finalizing their mortgage. During this period, the buyer's lender will:

• Verify the buyer's income, assets, and credit.
• Order the appraisal (see above).
• Process the loan application and underwriting.
• Issue a final loan approval or commitment letter.

Most financing contingencies allow the buyer 30 to 45 days to secure their mortgage. If the buyer cannot obtain financing by the deadline, they can back out of the deal and receive their earnest money deposit back.

To minimize the risk of financing issues, I recommend my sellers ask for proof of a strong pre-approval from a reputable local lender before accepting an offer. A fully underwritten pre-approval is much more reliable than a quick online pre-qualification.

Week 7 to 8: Final Walkthrough and Closing Preparations

As closing day approaches, several things need to happen:

The Final Walkthrough

The buyer will do a final walkthrough of the home, typically 24 to 48 hours before closing. This is not a re-inspection. It is a chance for the buyer to confirm that:

• The home is in the same condition as when the offer was accepted.
• Any agreed-upon repairs have been completed.
• All included items (appliances, fixtures, etc.) are present.
• The home is clean and ready for the new owners.

To avoid issues at the final walkthrough, make sure the home is clean, all agreed-upon repairs are complete, and any personal property you are taking with you has been removed.

Closing Preparations

In the days leading up to closing, your agent and attorney will:

• Prepare the closing disclosure, which outlines the final terms and costs of the sale.
• Coordinate with the buyer's attorney and lender to ensure all documents are ready.
• Confirm the closing date, time, and location.
• Prepare the deed and other transfer documents.

You will need to bring identification, any required documents, and your keys to the closing. Your agent will walk you through exactly what you need.

Closing Day: What to Expect

Closing day is when the sale becomes official. You will sign the final paperwork, transfer ownership to the buyer, and receive your proceeds. Here is what the process looks like:

1. Review and sign documents: You will sign the deed, the settlement statement, and various other legal documents. Your attorney should be present to explain anything you do not understand.
2. Transfer ownership: The deed is recorded with the county, officially transferring ownership to the buyer.
3. Receive proceeds: After all costs are deducted, you receive the net proceeds from the sale. This is typically done via wire transfer or certified check.
4. Hand over keys: You give the keys to the buyer, and the home is officially theirs.

The entire closing process usually takes 60 to 90 minutes. Once it is done, you can celebrate. You have successfully sold your home.

Common Challenges During the Under Contract Period

Here are some of the most common issues that arise during the under contract period and how to handle them:

• Low appraisal: As discussed above, a low appraisal can be addressed through negotiation, price reduction, or by challenging the appraisal.
• Inspection issues: Most inspection issues are resolvable through negotiation. Focus on safety and major systems, and be willing to compromise on minor items.
• Financing fall-through: If the buyer's financing falls through, you may need to put the home back on the market. This is why it is important to keep the home in showing condition until the financing contingency is waived.
• Title issues: If there are liens or other title issues, your attorney will work to resolve them before closing.
• Buyer's remorse: Some buyers get cold feet. If the buyer tries to back out without a valid reason, your attorney can help enforce the contract.

Having an experienced agent and attorney on your side is your best protection against these challenges. I have guided hundreds of sellers through the under contract period, and I know how to keep deals on track when issues arise.

Frequently Asked Questions About the Under Contract Period

Ready to Sell Your Home?

The under contract period can feel like a lot to manage, but with the right guidance, it is a straightforward process. I will be with you every step of the way, from the moment you accept an offer to the day you hand over the keys.

If you are considering selling your home in Burlington County or South Jersey, I would love to discuss how I can help you achieve a successful sale. No pressure, just honest advice and a clear plan.