When a home goes under contract, many buyers feel like the hard part is over. In reality, this is when much of the behind-the-scenes work begins.
If you are buying or selling a home in Delaware, here is a simple week-by-week look at what typically happens during that time.
Week 1. Contract Ratification and Initial Steps
Once both the buyer and seller sign the Agreement of Sale, the contract is considered ratified. This means both parties have agreed to the terms, and the official timeline of the contract begins.
Shortly after ratification, the buyer delivers an earnest money deposit. Earnest money is a deposit that demonstrates the buyer’s commitment to purchasing the home. The funds are held in an escrow account and are later applied toward the buyer’s down payment and/or closing costs at settlement.
During this time, the buyer’s lender begins working on the loan file and orders the appraisal, when applicable, which provides an independent assessment of the property’s fair market value and condition.
Week 2. Inspections and Discovery Period
Buyers may choose from several inspections depending on the property and their preferences. Common inspection options outlined in the Delaware Agreement of Sale may include:
- General home inspection
- Wood destroying insect inspection
- Radon inspection
- Well water inspection
- Buyer’s independent septic inspection
- Swimming pool inspection
These inspections are designed to identify major defects and provide the buyer an opportunity to negotiate repairs or credits with the seller.
A credit is when the seller agrees to provide money at closing instead of completing a repair themselves. In this scenario, the buyer can handle the repair after settlement.
Week 3. Appraisal and Loan Processing
The lender continues reviewing the buyer’s finances and loan documentation during this time. This process is known as underwriting.
The appraisal is typically completed within the first few weeks of the contract timeline. The appraiser evaluates the home to determine whether its value and condition support the purchase price agreed upon in the contract.
If the appraisal comes in at or above the contract price with no appraisal-required repairs, the loan process continues moving forward.
Week 4. Title Work and Legal Preparation
In Delaware, a real estate attorney operates as the settlement agent to ensure a smooth transfer of ownership. The attorney reviews the title history of the property to confirm there are no ownership disputes, unpaid liens, or legal issues that could affect the transfer of the property.
The settlement agent also prepares the closing documents and coordinates with the lender to make sure everything is ready for settlement day.
The buyer will also finalize homeowners insurance during this time. If the property is located in a flood zone, flood insurance may also be required by the lender.
Closing Week. Final Walkthrough and Settlement
Buyers should complete a final walkthrough of the home, usually within 48 hours before settlement. This step helps confirm the property is in the expected condition and that any agreed-upon repairs have been completed.
On settlement day, the buyer and seller sign the final documents with the settlement company and attorney. Once the paperwork is finalized and funds are transferred, ownership officially transfers to the buyer, and the keys are handed over.
* Weeks 1–4 are a guideline. Many Delaware transactions close in 30–45 days, though timelines may vary depending on inspections, financing, and other transaction details.
