By Summer Knight
2025 President
Santa Barbara Association of Realtors
Congratulations! You’ve had your offer accepted on a home in beautiful Santa Barbara. It’s an exciting moment, but the journey isn’t over yet. In fact, it is truly just starting. There’s still a critical phase ahead, escrow, where all the pieces come together to finalize your purchase. As a REALTOR®, I guide clients through this process every day, ensuring they know what to expect and how to avoid common pitfalls.
What Happens After I Sign a Purchase Agreement?
Once your offer is accepted, you enter escrow, a process that protects both the buyer and seller while ensuring all conditions of the agreement are met before money and ownership change hands. Think of escrow as a neutral zone where a third party holds funds, key documents, and instructions until both sides fulfill their obligations.
One of the first steps you’ll take is depositing earnest money, a good faith payment, into the escrow account. This shows the seller that you’re serious about buying their home. This money will later be applied toward your down payment or closing costs.
From here, the clock starts ticking. There are several key steps that need to be completed before you can officially call your home yours.
The Essential Steps Before Closing
1. Appraisal & Loan Approval
If you’re financing the home with a mortgage, your lender will order an appraisal to ensure the home’s value aligns with the agreed purchase price. An independent appraiser assesses the property based on recent sales and current market conditions. If the appraised value comes in lower than expected, it may require renegotiating with the seller or making up the difference in cash.
At the same time, your lender will be finalizing your loan approval. This involves verifying your income, credit history, and financial stability. The lender will also conduct a title search to ensure there are no outstanding liens or legal disputes on the property. You’ll also be required to purchase homeowners insurance, and if your home is in a high-risk area, additional fire or flood insurance may be necessary.
2. Home Inspection & Contingencies
While an inspection isn’t mandatory, it’s highly recommended. A home inspection can reveal hidden issues like structural damage, outdated electrical systems, or plumbing concerns. If major problems arise, you may be able to negotiate repairs or credits with the seller, or in some cases, back out of the deal if your contract includes an inspection contingency.
Some buyers opt for additional inspections, such as for radon, mold, or lead-based paint, depending on the age and condition of the home. Your REALTOR® will help coordinate these inspections and guide you on the best course of action based on the findings.
3. Final Walkthrough & Closing Day
Before closing, you’ll do a final walkthrough to confirm that any agreed upon repairs were completed and that the property is in the expected condition. Then, on closing day, you’ll sign a mountain of paperwork, including your loan documents, and provide your final funds, known as cash to close. Once all parties sign off, the escrow company officially records the sale, and you receive the keys to your new home!
How Long Does This All Take?
Escrow timelines vary, but in Santa Barbara, most closings take 30 days or so. However, factors like lender delays, complex negotiations, or last-minute surprises in inspections or appraisals can sometimes extend the process.
Why a REALTOR® is Essential During This Process
Buying a home is one of the biggest financial decisions you’ll ever make. Without expert guidance, it’s easy to overlook critical details that could lead to costly mistakes. Your REALTOR® helps you navigate the process, anticipate potential issues, and negotiate on your behalf, ensuring you get the best possible outcome. They will be by your side the entire process to make sure everything stays on track and that you’re prepared for each step along the way.
So, if you’re thinking about buying or selling in Santa Barbara, remember to reach out to a REALTOR®! They make all the difference by turning a stressful process into an exciting milestone.
For more information and resources, visit www.sbaor.org.
Summer Knight is a Santa Barbara native and top producing Realtor at Sun Coast Real Estate. Summer has been a member of the Santa Barbara Association of Realtors for over 20 years and currently serves as the President of the Board of Directors. Reach Summer at 805-886-1261 or summer.k.knight@gmail.com.
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