Under Contract to Closing: What Utah Home Sellers Need to Know
/You accepted an offer. Congratulations. Your home is officially under contract, which means it is off the market and reserved for the buyer.
You can relax a little. But it is not a done deal yet.
There are still several important steps between contract acceptance and closing day. Understanding what is coming will help you respond calmly and strategically when things arise.
The Three Contingencies
Utah purchase contracts include three contingencies that give the buyer protected exit points before the transaction closes. Each contingency has a deadline. Within each deadline, the buyer has the right to cancel and receive their earnest money back if something is unsatisfactory. If the buyer cancels outside of these windows, they may forfeit their earnest money to you as liquidated damages.
Contingency 1: Due Diligence
Due diligence is the buyer's opportunity to fully investigate the property. This typically includes a home inspection, radon testing, sewer scope, and a review of any HOA documents.
At the end of due diligence, the buyer has three options: proceed as-is, request repairs or a price concession, or cancel the contract.
If the buyer requests repairs or a credit, you also have three options: agree to all of it, counter with what you are willing to do, or decline. My advice to sellers is to focus your response on health and safety issues and significant defects. Cosmetic items and normal wear are not generally worth negotiating over.
Here is the perspective I give every seller: if you prepared the home well and we priced it realistically, the inspection is much less likely to derail the transaction. Most inspections close. Issues come up, and we work through them. I will be right there to help you read the report with the right perspective.
Contingency 2: Appraisal
The buyer's lender requires an appraisal to confirm the home is worth at least as much as the loan amount. If we priced the home correctly from the start, the appraisal should not be an issue. Problems arise most often when the purchase price is pushed significantly above market value in a multiple-offer situation.
If the appraisal comes in low, the buyer can make up the difference in cash, renegotiate the price with you, or cancel before the appraisal deadline. We will work through it together if it comes up.
Contingency 3: Financing
The financing contingency protects the buyer if their loan does not come through. If the buyer cannot obtain financing by the deadline, they can cancel and receive their earnest money back.
The best way to minimize financing risk on your side is to accept offers from well-qualified buyers with strong pre-approval letters from reputable lenders. I help you evaluate that when reviewing offers.
Settlement and Closing
Once all contingency deadlines have passed, the final major deadline is the Settlement Deadline -- the date both parties appear at the title company to sign all documents.
A note on Utah terminology: settlement and closing are two distinct events. Settlement is when you sign the documents. Closing is when the transaction is officially complete, meaning all funds have been received and the new deed in the buyer's name has been recorded with the county. You no longer own the home after closing -- not after settlement.
At settlement, you will sign the warranty deed (which transfers ownership), the settlement statement (which shows every dollar coming in and going out), and any final documents required by the lender or title company. I will walk you through the settlement statement before you sit down so there are no surprises at the table.
The Final Walkthrough
Before settlement, the buyer has the right to do a final walkthrough -- typically within the last seven days before closing. They are confirming three things: the home is in substantially the same condition as when they wrote the offer, any repairs you agreed to make have been completed, and all personal property included in the contract is still there.
Make sure agreed-upon repairs are done well before the walkthrough, not the morning of.
Possession and Moving Out
The possession date and time are written into the purchase contract. In most cases, possession happens at or shortly after closing. You must have everything removed by the agreed possession time.
Leave the home in broom-clean condition. My interpretation: leave it as clean as you would want it to be if you were moving in yourself. It is good practice and it goes a long way toward goodwill with the new owners.
Before you leave:
Cancel or transfer utilities effective on your possession date
Leave all keys, garage door openers, mailbox keys, and gate codes for the new buyer
Leave appliance manuals and warranties
Forward your mail and update your address
That Is the Full Picture
From your first decision to sell to the moment you hand over the keys, you now know what each step involves, what decisions you will face, and what to watch out for. The process is manageable when you understand it. Every step has a purpose, every deadline has a reason, and all of it is navigable with the right preparation and the right people in your corner.
If you are selling a home in the Salt Lake Valley and looking for an agent who will be straight with you and genuinely enjoy the process of helping you move on to your next chapter, I hope you will reach out.
And for the complete guide with worksheets you can use at every stage of the process, download it below.
Melissa Brownell is an Associate Broker with Plumb & Company Realtors in Salt Lake City, Utah, with 15 years of experience helping buyers and sellers throughout the Salt Lake Valley.