Home Selling 101: What to do before closing?
May 24, 2021
Selling your home can be an exciting time as you dream about possibilities for your future home or even envision adding some cash to your bank account. Having more insights and information about what happens after the contract is finalized can help lower the stress levels while you wait.
So, what do sellers need to keep in mind before they move on to the next place? Here are some of the key steps to help you in the coming weeks.
Title Search & Insurance.
This is the usual first step by a third party once the earnest money (or non-refundable deposit) goes into the bank. It’s necessary to ensure you are legally able to sell the home, and that a creditor or some other business isn’t looking for money from you with a lien (or a claim you owe money) on the property. If you simply owe a mortgage, then there’s nothing to worry about.
Home Inspections & Re-negotiating.
Once the price and date terms are agreed upon, then buyers typically request a home inspection to ensure there are no major structural issues with the property. (Although in a hot sellers’ market, some buyers might choose to skip this option.) It’s not uncommon to do some added negotiating at this point, if an inspector finds something that’s in need of replacement or repair.
Prepare for the unexpected.
Closings can be delayed sometimes — and that’s not always intentional. (The National Association of Realtors states that nearly one-third of all closings are delayed.) It can be caused by a third-party delay (like a backup at the lender due to low-interest rates). In that case, it’s a good idea to work with the buyer to determine a new closing date. If it seems intentional or manipulative, then buyers and sellers alike can be held financially responsible to help keep the sale moving along.
If buyers can’t close on time, they might be required to pay the seller’s mortgage or a portion of it until closing. If the sellers are causing the delay, they might have to pay for the buyer’s unanticipated living costs until closing. It’s important to work with an experienced realtor and/or attorney to keep the dialogue open and discuss all your options.
The post-inspection showings.
A new trend in certain regions of the country is buyers requesting an extra showing (or two!) once all parties have agreed upon the contract and passed the home inspection. This is typically done to walk through with a designer or interior decorator, or simply to double-check room measurements, appliance sizes, etc. It’s not a must-have but seen as a sign of good faith that a seller “has nothing to hide” when you agree to it.
The closing itself.
Finally! The big day arrives! Signing all the paperwork can even be done in advance, in which case you’ll likely need to have the power of attorney papers signed. Be sure to bring your state-issued ID and any other required documentation. Either you or your agent should also bring a final copy of the sales contract to ensure that all the terms of purchase are correct.
For more on what sellers should know before closing, check out this piece from Opendoor.com.
If you’re looking to make a move soon, we’d love to talk! We offer a free estimate — which can be in-person, or virtually, depending on your schedule. Just visit our website or give us a call at (866) 252-2383 to learn more.
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