The celebration after the seller accepts your offer lasts about a day — then the real work begins. From acceptance to keys, a California purchase moves through escrow: a tightly sequenced process of deposits, inspections, appraisals, disclosures, and loan approvals, all running against contingency deadlines. Buyers who understand the sequence stay in control; buyers who do not miss deadlines that cost them leverage or their deposit. Here is exactly what happens after the seller accepts your offer, in the order it happens.
Step 1: Escrow opens and earnest money goes in
Once both sides sign the purchase agreement, escrow opens — typically within a day or two. In California, a neutral escrow company holds the funds and documents while both sides complete their obligations. Your first job: deliver the earnest money deposit (also called the good-faith deposit) to escrow by the deadline in the contract, usually within a few days of acceptance.
Earnest money is typically 1% to 3% of the price — enough to show you are serious, and at risk if you walk away without a contractual reason. That last clause is why contingencies matter: as long as you exit within a valid contingency (inspection, appraisal, loan), you generally get the deposit back. Miss the contingency deadlines or waive them, and the deposit can go to the seller. Know every date in your contract from day one.
Step 2: Inspections and disclosures
Schedule your general home inspection immediately — inspectors book out, and your inspection contingency period is finite. Attend the inspection in person if you can; the report reads differently after you have walked the property with the inspector. In California, sellers also provide extensive disclosures: the Transfer Disclosure Statement, natural hazard reports (fire, flood, earthquake zones), and HOA documents if applicable. Read all of them. Disclosures have killed more deals than inspections, because they reveal what the seller knows — unpermitted work, neighborhood nuisances, prior insurance claims.
If the inspection turns up issues, you negotiate: repairs, credits, or a price reduction — or you walk. Our guide to negotiating after the home inspection covers the full playbook. Remove the inspection contingency in writing only when you are genuinely satisfied; until you do, it is your legal exit.
Step 3: The appraisal
Your lender orders an appraisal to confirm the home is worth what you agreed to pay — the lender will not fund a loan for more than the appraised value. The appraiser tours the property and compares it to recent sales of similar homes. This usually happens in the first two weeks of escrow.
If the appraisal comes in at or above the purchase price, you move on. If it comes in low, you have a decision: renegotiate the price, cover the difference in cash, challenge the appraisal, or exit under your appraisal contingency. See what to do when the appraisal comes in low for the complete decision tree. Do not remove the appraisal contingency until this is resolved.
Step 4: Loan approval moves to final
Your pre-approval got you the accepted offer; now the lender verifies everything for real. An underwriter reviews your income, assets, credit, the appraisal, the title report, and the property itself. Expect document requests — sometimes repeated ones — and respond fast; underwriting delays are the most common reason escrows run past 30 days.
During this period, change nothing financial. Do not change jobs, open new credit, close accounts, make large undocumented deposits, or buy furniture on credit. Any of these can trigger a re-verification that delays or derails approval. Lenders re-check credit and employment right before funding — stability until closing day is non-negotiable.
Step 5: Title, escrow instructions, and closing disclosure
While you handle inspections and the loan, escrow and the title company work in parallel: title search, clearing any liens, preparing escrow instructions, and prorating taxes and HOA dues. About three days before closing, you receive the Closing Disclosure — a standardized statement of your final loan terms and closing costs. Compare it against your original Loan Estimate. Most figures should match closely; large variances deserve an explanation before you sign.
Step 6: Final walkthrough, signing, and recording
Shortly before closing, do a final walkthrough to confirm the property's condition and that agreed-upon repairs were completed. Then you sign the closing documents and wire your down payment and closing costs to escrow. In California, the deal is not done at signing — it is done when the deed records with the county, usually a day or so later. Recording is the legal transfer; keys typically follow.
What can go wrong — and how to stay ahead of it
The deals that fall apart usually fail for predictable reasons: appraisal gaps the buyer cannot cover, inspection findings that scare the buyer or stall negotiation, loan problems from mid-escrow financial changes, and title issues like unexpected liens. Every one of these is manageable if caught early — which is why the theme of escrow is speed. Schedule inspections immediately, respond to lender requests the same day, review disclosures the night they arrive, and keep your agent and lender in daily contact during the final two weeks.
Frequently asked questions
How long after the seller accepts your offer do you close in California?
A typical California escrow runs about 30 days from acceptance to closing. Cash purchases can close in two weeks or less; complex loans, appraisal disputes, or title issues can extend the timeline. Your purchase agreement sets the specific closing date.
Can the seller back out after accepting my offer?
Generally no — once both parties sign, the contract binds the seller too, with only narrow exit paths (such as a seller contingency, which is uncommon). A seller who simply changes their mind faces legal exposure. Buyers have more exit ramps through their contingencies.
Do I get my earnest money back if the deal falls through?
If you cancel within a valid contingency period — inspection, appraisal, or loan — you typically recover the deposit. If you waived contingencies or miss deadlines, the seller may keep it. This is why tracking contingency dates is critical.
What should I not do after my offer is accepted?
Do not change jobs, open or close credit accounts, make large undocumented deposits, or take on new debt. Lenders re-verify your financial picture before funding, and mid-escrow changes are the most common self-inflicted cause of delayed or denied loans.
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Sources and further reading
California Department of Real Estate · Consumer Financial Protection Bureau: home-buying resources · California Association of Realtors