What Actually Happens Between an Accepted Offer and Closing Day
Once your offer is accepted in Massachusetts, the next 30 to 45 days (sometimes more, sometimes less) are usually a series of important steps leading up to closing: Inspection, the Purchase and Sale Agreement, financing and appraisal, final walkthrough, and closing.
Once an offer gets accepted, there’s this moment of celebration, and then almost immediately after, a quiet panic sets in: Okay, now what? What am I supposed to be doing for the next month or two?
The good news is that it’s not one long wait. It’s a handful of specific steps, many of them happening behind the scenes. Knowing what’s coming makes the whole process feel a lot less like a black hole.
The First Week or So: Inspection and the Purchase and Sale Agreement
After an offer is accepted, both the buyer and seller have real estate attorneys involved in preparing and negotiating the Purchase and Sale Agreement, commonly called the P&S.
Massachusetts does not have a formal “attorney review” period like some other states. Instead, the accepted offer is generally followed by an inspection with or without negotiations (as needed, depending on findings), the preparation and negotiation of the more detailed P&S, with the attorneys working through the contract language and terms.
The P&S is typically signed within about a week to ten days after the offer is accepted, although every transaction is different. It expands upon the terms of the offer and includes more detailed provisions governing the transaction, including financing terms, deposits, and the closing date.
This is also typically when the buyer makes the larger second deposit specified in the offer. Five percent of the purchase price is common in our market, although the amount is negotiable and varies by transaction. The deposit is held in escrow by the party designated in the agreement until closing.
Around the Same Time: The Home Inspection
The inspection happens within 7 days of the accepted offer typically. It happens before the P&S is signed.
A typical home inspection takes two to three hours and gives you an opportunity to learn more about the home's structure, systems, roof, mechanicals, and overall condition.
If something significant turns up, what happens next depends on the specific language and terms of your accepted offer. There may be an opportunity to negotiate, request a concession or repair, or terminate the transaction if the conditions of your inspection contingency are met.
I always tell my buyers not to treat inspection day as a pass-or-fail moment. Almost every home, including new construction comes with a list. The real question is whether something on that list materially changes the value you think the home is worth, or whether they are items that are small enough to move forward and take on yourself as the homeowner.
Weeks Two Through Four: The Mortgage Process Moves Into High Gear
Once you're under agreement, your lender continues working toward your mortgage commitment. The financing contingency in your offer and P&S will generally include a specific commitment deadline, often several weeks before closing.
During this period, the lender will also typically order the appraisal.
The appraisal is different from the home inspection. The appraiser's primary role is to provide an independent opinion of the property's value for the lender. If the appraisal comes in below the purchase price, it can create a financing issue and what happens next will depend on your financing terms and the language of your contract.
One important piece of advice during this stage: avoid making major financial changes without speaking with your lender first.
That means think twice before opening a new credit card, financing furniture or a car, changing jobs, or moving large amounts of money between accounts. Your lender may verify your finances and credit again before closing, and an unexpected change can complicate your approval.
Make sure to fulfill all the documentation the lender is looking for to complete your file. This will ensure the process is not held up.
The Final Days Before Closing: Walkthrough and Final Numbers
Usually a day or two before closing, and sometimes the morning of closing, you'll do your final walkthrough.
This is not a second home inspection.
It's your opportunity to make sure the property is in the condition required by your agreement, that the seller has moved out as expected, that items included in the sale are still there, and that any agreed-upon work has been addressed.
Around this time, you'll also receive your final closing figures from your lender and/or closing attorney. Review them carefully and ask questions about anything you don't understand or anything that looks different from what you were expecting.
What Happens on Closing Day in Massachusetts?
Closing is when the final documents are signed, funds are transferred, and the transaction is completed.
Depending on the transaction, documents may be signed at an attorney's office or through another arrangement coordinated by the closing attorney. Once all closing requirements have been satisfied and the deed has been recorded, ownership officially transfers to you.
And that is when the house is truly yours.
The stretch between an accepted offer and closing can feel overwhelming when you don't know what's happening behind the scenes. But when you understand the milestones inspection, P&S, financing, appraisal, walkthrough, and closing, it becomes much easier to navigate.
If you're buying a home in Wellesley, Needham, Newton, Natick, Newton, or the surrounding communities and want to understand what your particular timeline might look like, I'm always happy to walk you through it.
