Your Birmingham Home Is Under Contract—What Happens Next?

You’re Under Contract—Now What?

You’ve done the hard part: listed your home, attracted buyers, and accepted an offer. Your Birmingham home is officially under contract—congrats!

But the journey isn’t over just yet.

Many sellers are surprised to learn that once an offer is accepted, there are still critical steps to complete before the sale closes. From inspections and appraisals to final walk-throughs and closing day prep, knowing what to expect can help you avoid delays, reduce stress, and confidently reach the finish line.

Let’s walk through what comes next when your home in Birmingham, AL is under contract.

1. Buyer’s Earnest Money Deposit

After the contract is signed, the buyer usually deposits earnest money into an escrow account—this is a good-faith commitment to follow through with the purchase. This money is often applied toward the buyer’s down payment or closing costs at settlement.

In the Birmingham area, earnest money is typically around 1% of the purchase price, though it can vary depending on negotiations.

2. Home Inspection Period

The home inspection is one of the first steps after going under contract. The buyer hires a licensed inspector to evaluate the property’s condition—checking the structure, plumbing, HVAC, roof, and more.

You can expect:

• The inspection to occur within the first 7–10 days

• A repair request or negotiation based on findings

• A need to provide access for the inspector

Pro Tip: Being proactive about minor repairs beforehand can reduce surprises during this stage.

3. Appraisal Ordered by the Lender

Next up: the home appraisal, required by the buyer’s lender to confirm the home is worth the agreed-upon purchase price. If the appraisal comes in at or above the contract price—great! If it’s lower, additional negotiations may be necessary.

In a competitive market like Birmingham, buyers sometimes offer to cover appraisal gaps to make their offers more appealing. Your real estate agent can guide you if any pricing issues arise.

4. Buyer’s Financing Finalized

During this time, the buyer works with their lender to finalize their mortgage approval. This includes:

• Submitting final documentation

• Undergoing credit and employment verification

• Locking in interest rates

Important: If a buyer’s financing falls through, the deal may not close—though this is rare when buyers are pre-approved.

5. Title Search and Clear to Close

A title company performs a title search to ensure there are no liens or ownership disputes. Once that’s clear, the transaction moves toward closing.

This is also when:

• You’ll review and sign seller disclosures and closing documents

• The settlement date and location are confirmed

• Your agent and title company coordinate final logistics

6. Final Walk-Through by the Buyer

Within 24–48 hours of closing, the buyer completes a final walk-through to ensure:

• Repairs (if agreed upon) were made

• The property is in the same condition as when they offered

• Appliances and systems are functioning

Make sure the home is clean, vacant (unless otherwise agreed), and move-in ready.

7. Closing Day in Birmingham, AL

Closing usually takes place at a title company or attorney’s office. As the seller, you’ll:

• Sign the deed and other documents

• Hand over keys, garage openers, and codes

• Receive your proceeds via wire transfer or check

Congratulations—you just sold your home! 🎉

What Can Delay a Closing?

Even in smooth transactions, things like:

• Incomplete repair work

• Appraisal issues

• Title problems

• Buyer loan delays

…can push back the timeline. But with a proactive agent and clear communication, these are often easily managed.

Conclusion: Stay Calm, Stay Informed, Stay on Track

Going under contract is a huge milestone, but the process doesn’t end there. From inspections to appraisals to final paperwork, there are important steps that bring you to a successful closing.

With the right agent by your side, you'll be well-prepared, informed, and empowered to navigate the process with ease.

Need Help Selling in Birmingham? Let’s Talk!

📞 Call: (205) 332-7701
📧 Email: [email protected]
🌐 Visit: bennyroberts.com

Whether you're just getting ready to list or you're already under contract, I'm here to make your home sale as smooth, profitable, and stress-free as possible.

Let’s work together to get your home sold—and get you to the closing table with confidence.