Closing Process from the Sellers’ Point of View
Once the offer is signed by everyone, the ball starts rolling. Today, I am going to give you an overview of the closing process from the sellers’ point of view.
Buyer Financing & Inspections
Assuming the buyer is financing the purchase, the buyer will formally apply for their loan and the inspections will be ordered. The home inspection will be completed prior to the due diligence deadline. If you would like to learn more about due diligence, take a look at my due diligence from the sellers’ perspective post and my due diligence from the buyers’ perspective post. The termite inspection will be completed closer to the closing date because that inspection is only good for 30 days. If any repairs are requested or required from the inspections, the buyers’ agent will let me know, and you and I will discuss your options.
Appraisal
The lender will order the appraisal after the buyer formally applies for their loan. The appraiser will contact me to schedule a date for the appraisal, and I will work with you to make sure the date fits your schedule. If the property being sold is a condo, the lender will also order the condo questionnaire.
Attorney
You will receive a call from your chosen attorney. They will open a file for your closing and prepare the Deed to be signed at closing. As we get closer to the closing date, we will schedule a firm date and time for closing or your paralegal will let you know when to expect your closing documents if you are closing by mail. 99% of the time, closing will happen on the date listed on the contract.
Meanwhile, the buyers’ attorney will be completing a title search to make sure there are no liens on the home and you can convey a clear title. A Certificate of Assessment from your HOA office will be ordered by one of the attorneys. Which attorney orders the Certificate of Assessment depends on who is paying the HOA transaction fees.
Canceling Services
Also, you will need to cancel any services in your name.
- Schedule your utilities to be turned off as of the day of closing
- Cancel your homeowners’ insurance – I recommend canceling your homeowners’ insurance as of the day AFTER closing.
- Cancel any pest control services
- Cancel any landscaping services
- You will also need to update your new address with the Post Office
Walk-through, Closing & Keys
The buyers will complete a walk-through 1-2 days prior to the closing. You will need to have everything out of your home on the day of closing. The buyers will not be able to get the keys to the house until after the Deed is recorded unless other arrangements are made prior to closing.
A few days before closing, I will receive a copy of the settlement statement or Closing Disclosure from the buyers’ attorney’s office. I will verify that the numbers are correct and let you know the amount of money you will receive after closing. I suggest having the attorney wire funds into your bank account. You will get the funds faster and they will be available sooner.
Deciding to list your home for sale, getting it ready to be on the market and closing on your home is a busy time plus it can be stressful and emotional. Take a look at my seller educational videos to help you through listing and closing on your home.
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