What Happens After Your Offer Is Accepted in Utah
/Your offer was accepted. Congratulations. Take a breath and enjoy that for a moment, because the next few weeks are going to be busy.
Being under contract means the home is off the market and reserved for you, but the transaction is not finished. There are several important steps between offer acceptance and closing day, and most of them fall primarily on you as the buyer. Here is what to expect.
You Have Three Contingencies - Use Them
The Utah Real Estate Purchase Contract (REPC) gives buyers three protected exit points, called contingencies. Each one has a deadline. Within that deadline, if something is not satisfactory, you have the right to cancel the contract and get your earnest money back. Understanding these contingencies is one of the most important things a buyer can do.
1. Due Diligence
Due diligence is your broadest contingency. It is your opportunity to fully investigate the property before committing. During this period, you can look into the physical condition of the home, potential hazardous materials like radon or lead paint, HOA documents, property taxes, and anything else that affects your decision to buy.
Your due diligence deadline is typically one to two weeks after contract acceptance. The first thing you should do is schedule your home inspection, ideally within the first two or three days. Good inspectors book up fast, and you want time to review the report and follow up with any additional inspections before the deadline arrives.
What to inspect:
The general home inspection covers the structure, roof, foundation, electrical, plumbing, and HVAC. Plan to be present if at all possible -- walking through with the inspector is one of the most valuable hours you will spend in this process. Beyond the general inspection, consider adding a radon test (Utah has elevated radon levels in many areas), a sewer scope (especially for homes over 20 years old), and a chimney inspection if the home has a fireplace.
After the inspection, you have three options: proceed as-is, request repairs or a price reduction, or cancel the contract. Focus your requests on health and safety issues and significant defects -- not every minor item on the report. The inspection is not meant to produce a punch list for the seller to work through.
If the home is in an HOA: Reviewing the HOA documents is a critical part of due diligence. Read the CC&Rs carefully. Finding out during due diligence that an HOA prohibits something important to you gives you the option to cancel. Finding out after closing does not.
2. Appraisal
Your lender requires an appraisal to confirm the home is worth at least as much as they are lending you. The appraisal is ordered by your lender, typically completed two to four weeks after contract acceptance, and costs around $500 to $700.
If the appraisal comes in below the purchase price, you have options: pay the difference in cash, renegotiate with the seller, or cancel before the deadline. In some cases, if you believe the appraiser missed relevant comparable sales, your lender can submit a Reconsideration of Value request.
3. Financing
The financing contingency protects you if your loan does not come through. The best protection here is the work you did before you started looking -- if you were fully pre-approved, surprises at this stage should be rare. Between now and closing, avoid any significant financial changes: no new debt, no job changes, no large purchases.
Stay Calm and Stay in Communication
The under contract period can feel nerve-wracking, especially when an inspection report comes back with a long list of items. Most transactions close. Issues come up, and they get worked through. As long as you stay within your deadlines and keep in close contact with your agent and lender, you will get to the other side.
Ready to go deeper?
Want the full picture before you start your search? The Utah Home Buyer's Guide walks you through every step of the process, from your first lender conversation to closing day.
Have questions about the under contract period right now? I am happy to talk through it. Reach me 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.