There is a lot of work to do in the weeks leading up to the closing. It's important to get yourself organized and not to become overly stressed. If your contract was properly written you'll have enough time to finish everything - and if you fall slightly behind it's likely the closing can be delayed a few days until you are ready to go. Make a list of everything you need to get done. Don't hesitate to ask your agent to help you get ready - he or she is not only there to help, but is also a veteran of this process. Your agent can run important errands, arrange for inspectors to have access to the house, or help you find a contractor to make a repair. Don't overlook this resource if you feel you are falling behind. Keep a list of all items that need to be completed before the closing. Note the dates of appointments and check off items that are completed. A little organization - and maybe a bit of help from your agent - is all you need to get to the closing table without driving yourself crazylistic |
“Real Estate Service Times...Two”
Close
the Deal
You're
almost there, but there is still some work to do before the deal is
closed.
Preparing
to Close
There's a lot to
do in the weeks leading up to the closing, so good organization is a
must. Proper scheduling can reduce your stress and prevent any mistakes
or delays.
Get
Organized
Create a schedule
of the items you need to complete before closing. Set up a file with
all of your purchase and closing related documentation so you have it
readily available.
Confirm
Payment of Deposit Funds
The contract probably calls for the balance of the deposit to be
paid to the escrow agent within a certain period of time. Confirm that
this has been done as required. The deposit is your major security until
the closing - make sure it is posted as required. If the buyer seems
unable to produce the required funds it could be a sign of trouble -
so find out what is going on.
Monitor
Inspections and Contingencies
The contract is probably subject to a number of inspections and
contingencies. These conditions are intended to allow the buyer to check
things out and make sure there are no problems - not as an open ended
delaying tactic. Confirm that the buyer schedules the inspections in
a timely manner, and make sure access to the property is available.
Deal
with the Inspection Reports
The buyer's inspection reports will usually list a number of sub-standard
items - few homes are without defects. The buyer my provide you with
a list of things to be corrected before the closing. You may or may
not agree that you are responsible for items on the list. At this point
another negotiation may result. Although each deal is different, typically
the seller will repair (or provide a credit to cover the cost) any major
or structural problems. The seller is usually responsible for the cost
of radon remediation, if required. Normal wear
and tear items, on the other hand, are not usually corrected by the
seller.
Address
Your Contingencies
The contract may include contingencies or conditions requiring the seller
to take certain actions - removing debris or an old shed, for example.
Make sure to attend to these matters early so they do not become a problem
at closing time.
Get
a Payoff Letter
If you have a mortgage on your home you will be paying it off
at the closing so you can transfer clean title
to the buyer. Your lender should provide you with a payoff letter specifying
the exact amount required to completely retire the loan. The payoff
letter should also specify a per diem, an additional amount required
for each day after the payoff letter is dated. For example, if your
payoff letter states a figure of $95,000 with a per diem of $20 you
would owe $95,200 if the closing occurred 10 days after the date of
the letter. Your attorney or escrow agent may request the payoff letter
from the lender - but it's still a good idea for you to make sure it
gets done.
Review
the Closing Costs
Consider your closing costs so you
have a good idea of what proceeds you will net from the sale. Our guide
to closing costs can give you some idea of what to expect.
Provide
Information to the Buyer
Provide the buyer with copies of any relevant documents you have - surveys,
septic designs, service records, building permits (from past projects),
etc. The contract may specify that you are to provide these items, but
even if it doesn't, it may help the buyer conclude the inspection phase
- and it is a basic courtesy.
Get
Ready for Moving Day
You'll probably be
moving out right before the closing (or just after if you've arranged
this with the buyer), so now is the time to start preparing. You need
to hire a mover (unless you plan to handle the move yourself) and start
packing your possessions. It's also time to make arrangements for utility
shutoffs and installations at your new address - our utility checklist
can help you organize these tasks.
Do
the Walkthrough
The final walkthrough
should be conducted the day of or before the closing. The walkthrough
allows the buyer to confirm that the house is ready and that any required
repairs have been completed. Conducting a walkthrough reduces the chance
of confusion or problems at the closing.
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2004-2007 by Pam and John Grice
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