You're Under Contract — Now What?
Getting a property under contract is a milestone, but it's the beginning of the work, not the end. What happens between signing the purchase agreement and sitting at the closing table determines whether you actually close the deal and collect your assignment fee.
This guide walks through every step from the moment the seller signs to the moment you get paid, with a focus on wholesaling but applicable to any acquisition strategy.
Immediate actions (Day 1-3)
Deliver earnest money
Your earnest money deposit is typically due within 1-3 business days of contract execution. Deliver it to the title company or escrow agent named in the contract. Get a receipt. Missing this deadline can void your contract.
Open title
Contact your title company and provide the executed contract. They'll open a title file and begin the title search. A clean title is essential for closing. Any title issues need to be identified early so there's time to resolve them.
Start marketing
If you're wholesaling, start marketing the deal to your buyer list immediately. Every day you wait is a day closer to your closing deadline. Prepare your deal package with photos, comps, ARV analysis, and repair estimates.
Due diligence period (Day 1-14)
If your contract includes an option period, inspection period, or due diligence period (varies by state), this is when you verify everything:
- Property inspection: If you haven't been inside, schedule a walkthrough. Verify the condition matches your expectations.
- Comp verification: Confirm your comp analysis with a deeper look at recent sales. Adjust your numbers if needed.
- Repair estimate: Get a contractor to walk the property and provide a bid. This gives your buyer confidence in the numbers.
- Title review: Review the preliminary title report. Look for liens, easements, encroachments, or ownership issues.
- Property data: Pull full property records: tax status, mortgage balance, HOA, flood zone, permits.
Finding your buyer (Day 3-21)
For wholesalers, the next critical step is finding an end buyer:
- Send your deal blast: Email your buyer list with the deal package. Include clear numbers, photos, and your asking price.
- Host walkthroughs: Schedule property walkthroughs for interested buyers.
- Collect offers: If you receive multiple offers, evaluate based on price, proof of funds, and closing timeline.
- Execute assignment: Once you accept a buyer's offer, sign the assignment agreement and collect the buyer's earnest money.
Closing preparation (Day 14-30)
- Confirm title clearance: Follow up with your title company. All liens, judgments, and encumbrances must be resolved before closing.
- Review settlement statement: The HUD-1 or closing disclosure shows all debits and credits. Verify your assignment fee appears correctly.
- Coordinate with all parties: Seller, buyer, title company, and any agents or attorneys involved need to align on the closing date and location.
- Prepare for closing day: Know whether you need to attend (varies by assignment vs double close and by state).
Common things that go wrong
- Title issues: Unreleased mortgages, liens, or clouds on title. Solution: work with title company to resolve, request extensions if needed.
- Seller cold feet: Seller changes their mind. Solution: your contract is binding. Understand your rights and enforce them professionally.
- Buyer falls through: Your buyer can't close. Solution: have backup buyers ready and re-market immediately.
- Financing delays: If your buyer is using a loan, underwriting delays happen. Solution: prefer cash buyers for faster, more certain closings.
The closing day checklist
- Settlement statement reviewed and approved
- All parties confirmed for signing
- Wire instructions sent and verified (watch for wire fraud!)
- Assignment fee confirmed on settlement statement
- Keys/access arrangements confirmed
- Post-closing: funds received, contract fulfilled
Related articles
- How to Assign a Contract
- Earnest Money in Wholesaling
- How to Handle Title Issues
- How to Market a Wholesale Deal
- How to Estimate Closing Costs