STEP 6:  CLOSING

Some of the most complex part of the real estate transactions begin after sale agreement has been signed and the selling process is complete.  The sale agreement contains a purchase price for the property but also the terms and conditions. More and more an inspection is required by a trained or independent observer.  A lot of times the contract even depends on the ability of a buyer to obtain financing (which is why most sellers obtain a pre approval letter from the lender).  Also, the lenders have requirements of their own before the loan is granted such as title insurance to protect against title errors, termite inspections, appraisals and surveys.  Generally, the seller’s agent will help prepare him/her ahead for the closing.

When Should You Close?

Technically, with automation now available, it is possible to close within a week.  Just keep in mind that arranging financing, financing, locating replacement housing, contacting movers, obtaining appraisals, inspections and the actual moving itself is very time consuming.  Contrary, the problem with closing past too many days is that loan rates are difficult to lock in and if mortgage rates go up the buyer may no longer be able to afford the mortgage.  So with all things considered, most homes close 30 to 45 days after the sale agreement has been signed.

What Happens at Closing?

Closing is also known as escrow or settlement depending on the area.  This is meeting where the agent takes money from the buyers, pays money to the owner, ensures that the purchaser’s title and property liens are properly recorded.  Any final “adjustments” can be made at this meeting.  The agent is then responsible for reviewing the sale agreement determining what payments and credits the owner should receive from the buyer and transaction costs are paid such as taxes and title searches.

Your Home Inspection

The buyer had set an appointment for the inspector to arrive to inspect he condition of your home and how well you’ve maintained it over the years.  Don’t be afraid of what he/she may uncover, with disclosure laws and customary real estate practices, here are some steps to take to help the inspection run smoothly.

Don’t block living areas in your room.  If the inspector cannot enter a room for inspection it will be noted in the report and the buyer may question it.

Be courteous.  The inspector is a paid professional giving a fair assessment of the property - he’s not there to find everything wrong with the property.  Tip:  Don’t be late for the appointment with the inspector and keep in mind it may be a two hour process.

Leave the premises.  Don’t feel like to need to be home for the inspection because you don’t.  Your real estate agent should be familiar with your home and can act as your representative.  Most agents prefer that the seller not be present.

Don’t follow the inspector around making comments.  Inspectors do not want to be followed around while you try to explain every detail and aspect of the home.  The time for this is once you’ve reviewed a copy of the report.

Make agreed upon repairs.  Some buyers ask the inspector to “okay” any repairs that you agree to fix.  The sooner you accomplish this the better.  If you wait till the last minute the buyer will still have those items reinspected and this could delay escrow and the closing.