Your offer was accepted. Congratulations!
But getting your offer accepted is only the beginning.
Now you’re officially entering escrow — the period between having your offer accepted and getting the keys to your new home.
This is where a lot of the important work happens: inspections, disclosures, appraisal, financing, repairs, paperwork and, ultimately, closing.
Here’s what you can expect.
What Is Escrow?
The word escrow can actually mean two different things during a real estate transaction.
1. Escrow Is a Company
The escrow company is a neutral third party in the transaction.
They help coordinate the transaction and hold important documents and funds while the buyer and seller complete the requirements of the contract.
Think of the transaction like this:
Buyer → Buyer’s Agent → Escrow ← Seller’s Agent ← Seller
Your agent and the seller’s agent communicate with each other while also communicating with escrow throughout the transaction.
The escrow company helps make sure the money and paperwork are handled properly and that the transaction doesn’t close until the necessary requirements have been satisfied.
2. Escrow Is Also a Timeline
When people say, “We’re in escrow,” they’re often referring to the period between contract acceptance and closing.
The length of escrow depends on the terms of your contract.
As a general example:
• 10–15 days: Very fast/aggressive
• Around 30 days: Common
• 45+ days: Longer escrow
Your actual timeline will depend on your financing, the property, the seller’s needs and the terms negotiated in your offer.
What Happens During Escrow?
Once your offer is accepted, several things begin happening at the same time.
The major areas we’ll focus on are:
• Earnest money deposit
• Due diligence & inspections
• Seller disclosures
• Requests for repairs
• Appraisal
• Loan approval
• Removing contingencies
• Final steps & closing
Let’s break those down.
Step 1: Your Earnest Money Deposit
One of the first things that happens after your offer is accepted is your earnest money deposit, sometimes called your EMD.
This is a good-faith deposit showing the seller that you’re serious about purchasing the property.
The money is deposited with escrow, not handed directly to the seller or your real estate agent.
Your earnest money is generally applied toward the purchase at closing.
The amount depends on the terms of your contract. A stronger offer may include a larger deposit, which can demonstrate a higher level of commitment to the seller.
Does earnest money mean you’re stuck buying the house?
Not necessarily.
This is where contingencies become extremely important.
Step 2: Your Due Diligence — Do Your Homework
One of the biggest jobs during escrow is determining:
“Am I comfortable moving forward with this home?”
I call this your homework phase.
This is your opportunity to investigate the property and learn as much as reasonably possible before you’re fully committed to moving forward.
Your due diligence may include:
General Home Inspection
A general property inspection gives you an overall look at the home’s condition.
The inspector may examine things such as:
• Plumbing
• Electrical
• Roofing
• HVAC
• Structure
• Windows
• Appliances
• Major systems
• Other readily observable components of the property
The goal isn’t necessarily to find a “perfect” house.
The goal is to understand what you’re actually buying.
Step 3: Review Seller Disclosures
Inspections aren’t the only part of your homework.
You’ll also have documents and disclosures to review.
Seller disclosures are intended to provide information the seller knows about the property, subject to the requirements of the applicable forms and law.
You should take the time to read through the documents and ask questions about anything that concerns you.
Here’s an important distinction:
Your agent’s job isn’t to decide what you’re comfortable buying.
Our job is to help you understand the information available, identify potential concerns, help you investigate those concerns and negotiate when appropriate.
You ultimately have to decide:
“Am I comfortable owning this property?”
Step 4: What If We Find Problems?
This is where your inspection and due diligence work becomes incredibly important.
You may discover:
Everything looks good.
Great. You can continue moving forward.
You have questions.
That’s normal.
You may need additional inspections, estimates, documentation or information before deciding what to do.
You discover something that makes you uncomfortable.
Depending on your contract and applicable deadlines, you may have options that could include negotiating repairs, credits or other changes — or potentially terminating the transaction.
This is why contingencies matter.
Step 5: Requesting Repairs
Let’s say your inspection uncovers a significant issue.
For example:
The HVAC system is nearing the end of its useful life and a qualified contractor estimates that repairs or replacement will cost $5,000.
You may have several ways to approach the situation.
You could potentially ask the seller to:
Fix the Problem
The seller completes the repair before closing.
Potential benefit: The problem is addressed before you take ownership.
Potential concern: You have less control over exactly how the work is performed unless the agreement is carefully structured.
Provide a Credit
Instead of completing the work, the seller may agree to provide an allowable credit toward your closing costs or other permitted expenses.
Potential benefit: You have more control over how you use the money.
Potential concern: A credit may not necessarily cover the full eventual cost of the repair.
Reduce the Purchase Price
The parties could potentially negotiate a reduction in the purchase price.
Potential benefit: It lowers the amount you’re paying for the property.
Potential concern: A price reduction doesn’t necessarily provide the same immediate financial benefit as a credit, particularly depending on your financing and down payment.
The Goal Isn’t to Ask for Everything
One of the biggest mistakes buyers can make is treating the inspection process like a shopping list.
The goal isn’t:
“Here’s everything wrong with the house. Give us $50,000.”
The goal is to determine:
What did we discover that we reasonably didn’t know about before?
Then we use the information available to determine the best strategy.
Sometimes that means asking for repairs.
Sometimes it means requesting a credit.
Sometimes it means negotiating the price.
And sometimes it means accepting the property as-is.
Every transaction is different.
Step 6: Your Appraisal
If you’re financing the purchase, your lender will typically order an appraisal to determine the property’s market value for lending purposes.
The appraisal is important because your lender wants to make sure the property supports the amount they’re lending.
This is another reason your financing strategy matters before you write the offer.
The lender you choose, your level of approval and how quickly your lender can complete the process can all affect how competitive your offer is.
Step 7: Your Loan Approval
While you’re completing inspections and due diligence, your lender is working on the financing.
This may include:
• Verifying income
• Reviewing assets
• Confirming employment
• Reviewing credit
• Ordering the appraisal
• Collecting documentation
• Completing underwriting
• Preparing the final loan approval
The stronger your financing is before you write the offer, the more confidence you can have going into escrow. This is one reason we encourage buyers to get as prepared as possible before they ever start making offers.
Step 8: Removing Your Contingencies
This is one of the most important concepts to understand.
When you write an offer, you typically have contractual contingencies that give you specific rights and deadlines.
The major categories we discuss with buyers include:
Homework / Due Diligence
Are you comfortable with the property after completing your inspections and reviewing the available information?
Appraisal
Does the property appraise appropriately for your financing?
Loan
Are you able to obtain the financing necessary to purchase the home?
Your contract will establish specific deadlines for these contingencies.
Those deadlines matter.
You don’t want to casually let a contingency deadline pass without understanding exactly what that means under your contract.
How Long Does This Take?
A standard contract may provide a relatively long period for contingencies, but that doesn’t necessarily mean you need to use every available day.
With an organized process, inspections, reports, disclosures and financing can often happen concurrently.
As a general framework, we may think about:
| Timeline | General Approach |
|---|---|
| 5 days | Very aggressive |
| 7 days | Competitive / common target |
| 10 days | More flexibility |
| 17 days | Traditional contract timeline |
The appropriate timeline depends on the property, your financing, the seller’s needs and your comfort level.
Shorter isn’t automatically better.
The goal is to create a timeline that makes your offer competitive while still giving you the protection and time you need.
The Goal of Escrow
Escrow isn’t simply:
“Wait 30 days and get your keys.”
It’s a period where a lot of important decisions happen.
My job is to help you:
Investigate the property → Understand the risks → Negotiate when appropriate → Complete your financing → Meet your deadlines → Get to closing
And your job is to stay engaged, ask questions and make informed decisions.
Finally: Closing Day
Once your contingencies have been handled, your financing is ready, the necessary documents are complete and all closing requirements have been satisfied, you’re approaching the finish line.
You’ll review and sign your closing documents, funds will be handled through the appropriate parties, and ownership will transfer according to the terms of the transaction.
And then…
You get the keys. 🔑
Welcome home.
Want Help Navigating the Buying Process?
Buying a home is a lot more than finding a house you like and submitting an offer.
It’s about being prepared before you write the offer, knowing what you’re agreeing to, protecting yourself during escrow and knowing what to do when something unexpected comes up.
That’s why we take the time to educate my buyers throughout the process.
Book a Buyer’s Consultation →
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