Once you have a contract, for the sale of your home, the clock starts ticking and you usually have thirty days before you must move. Terms of the contract will have timed occurrences to be performed before the negotiation is over and you get to the closing table and final sale. Getting yourself organized beforehand can make this, sometimes, frustrating part of the sale, flow smoothly. Did you think you were finished with negotiations? Well, you may not be and a real estate closing checklist will help you stay on top of the details.
Items may turn up during the period of contract execution and closing that may need to be addressed for the sale to proceed. If you have a real estate agent they will handle of lot of these details but if you are selling buy owner, or using a service like Movoto, you will need to get organized. If you have prepared properly, prior to the sale of your home, keep your papers in order and carry out the caveats of the contract, you should have smooth sailing.
Get organized like a pro
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At the signing of the contract, addendums and seller’s disclosure and other pertinent documents that must accompany the closing package, copies should be available for all of the parties. You will need a copy for yourself and the closing attorney or Title Company, so having more than one original is a good idea, for you and the buyer.
Get it together
Gather the items that you will need for closing. Find last year’s tax bill, final utility bills, and purchase a homeowner warranty policy if you offered it with the sale of the home. Get a satisfaction letter from your lender if your home is mortgaged. Make a folder or use a large envelope to keep all of your information together.
Follow Up
Whether you are using the services of a real estate agent or selling your home yourself your will need to verify with all parties regarding the progression of events. The dragging of feet is not an option when you may have repairs to make to satisfy the deal. Title searches and calendars of other involved parties must be considered, too.
Keep track of the appraisals and inspections and make sure that they are performed on time. The period for home inspections is often set out in the contract. If it hasn’t been finished in the allotted time, the buyer may forfeit or you can renegotiate for them to have this service performed. However, make it clear that you may not have time to conduct any repairs because they are behind on their due diligence.
Home inspection?
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You know you have prepared your home for sale but items might show up in the home inspection performed by the buyer that they question or that they think has material value enough to haggle over. If so, you can choose to adjust your price or make the repair. You can even have the buyer pay if you and they agree on it. However, if you do this, have the money required to make the repair in escrow so that there is no question that it will not be paid by you.
Make access easy for the appraiser and home inspector. The sooner they are able to get their jobs done the sooner you will know if you need to make any title corrections or home repairs.
Real Estate Closing Checklist
- Get a copy of the signed purchase and sale agreement to your attorney to Title Company.
- Find last year’s tax receipt
- Change your mailing address
- Make any necessary repairs, according to inspection or according to agreement with you and the buyer.
- Have utilities changed to the new address on the selected date, if applicable. If this doesn’t apply to you arrange for the utilities to be disconnected at the appropriate time.
- Finish packing and arrange for a moving company or rental truck.
- Make a packing list and keep this part of the moved organized so that your job is easier once your possessions reach their new home.
- Cancel your property insurance.
- Cancel phone and cable service and newspaper subscriptions.
- Pay final utility bills or have them sent to your forwarded address and make sure that the buyers have utilities transferred into their names on the appropriate date.
- Do a final cleaning on the house and leave it ready for the buyers.
- Verify that all agreements in the contract have been met.
- Gather warranties on existing home equipment, as well as the homeowner’s warranty, if you purchased one for them, and either give this information at closing or leave it on a kitchen counter when you leave.
What to take to the Closing
- Take your ID. Most states require verification of both seller and buyer.
- Take pertinent documents to closing, including last year’s tax receipt
- Take garage door openers, keys and security codes.
- Take your checkbook.
Finished
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Planning for closing should begin as soon as you list your home. By knowing what is required for the sale of your house and by using a real estate closing checklist, you can make a complicated task much easier. Gathering documents and knowing your liabilities will also give you a very clear idea of your profit from your home, long before you get to the closing table.
Educating yourself on the ins and outs of selling a home can save you thousands of dollars. Knowing the does and don’ts of a seller closing will ease your way through the sale of your home and using a real estate closing checklist will help you get organized like a pro when selling your home.
