It's closing week! The final step to wrapping up the selling process. This week all of our efforts are going towards hearing those three magic words, “Clear to close!” and crossing the finish line. This is the week in which all of your time and financial investments pay off. For some sellers, this week is smooth sailing, while for others, this week can be a little chaotic. But never fear, we are here to help you know just what to expect for closing week.
Your closing week timeline and checklist will vary depending on your situation. If you have already moved out of the home, we are simply making sure the home is ready to transfer to the new buyers. However, if you still need to move out, we are working to make sure that the timelines for selling this home and purchasing your new home align properly.
“Clear to Close”
The most important thing we are waiting and listening for during closing week is the buyer’s final loan approval and the lender giving the official “clear to close”. If the buyer is using a lender, we want to know that the appraisal value met, the HOA documents have been approved, the title commitment has been issued, and the lender has approved both the buyer and the property. Once all conditions have been met and we can move to the closing table, the lender will give us the “clear to close”.
If we do not receive the “clear to close” from the lender by the closing date, closing may need to be moved. If this happens, we will walk you through this and help you navigate adjusting the timeline.
The Final Walkthrough & Moving Out
Typically within 48 hours of closing, the buyer will schedule a final walk-through of the house. During the walkthrough, they are checking to make sure the house is in the same condition they saw it when they went under contract (no flood damage or scrapes to the hardwood floors) and also that any agreed-upon repairs were completed.
When moving out of the home, everything should be removed except what was included in the contract and attached to the home. On the first couple of pages of the contract is a list of things that should stay with the home. Other items that need to stay are those that were negotiated such as certain appliances and furniture.
A general rule of thumb is that if it takes a tool to remove it, it should stay with the house. Common items that are often accidentally taken are things like TV mounts, smart doorbells and surveillance cameras, curtains and curtain rods, and shelves that are drilled into the wall. If you have questions about specific items in your home, we are always here to help clarify if they should stay or go.
You will also want to make sure to leave behind things that the new owners will need such as garage door remotes, security codes, and mailbox keys. A recent update on the contracts requires sellers to log out of any smart devices prior to turning over the home to the buyer. This includes security systems, smart doorbells, and thermostats.
Additionally, any information you can pass along regarding your paint colors, pool maintenance, and other unique features of your home is super helpful for the buyer’s transition into the home. Homes don’t come with instruction manuals, so anything you can leave for the buyers, the better!
Don’t forget that you will also need to contact your utility providers to let them know that you will be ending your services with them. We typically suggest canceling services for the day after closing so that if the buyer wants to transfer services and use the same company, the provider doesn’t have to come out twice to stop and start services.
Lastly, it is not required that the house be professionally cleaned when moving out, however, it is common courtesy to leave it at minimum “broom” clean. This is their first impression of their new home, so you can help make it a great one!
The Settlement Statement
Prior to closing, we will see the final statement from the title company so that you can see the exact debits and credits from the transaction as well as your net proceeds. This statement needs to be reviewed in detail as this determines the check you will be receiving when everything is completed on closing day. So if there are any errors in the settlement statement, we need to know as soon as possible.
The other two important pieces of information that you will need to know for closing day are the details of your remaining mortgage on the property and deposit information from the sale.
If you have an outstanding mortgage on the property, the title company will need the mortgage information so that they can pay it off on your behalf. Once both parties have signed on closing day, the title company receives the money from the buyer or the buyer’s lender and then pays off the remaining mortgage on the home.
When it comes time for the net proceeds to be transferred to your account, you will need to provide wiring instructions or a voided check of the account you want the money deposited into.
Closing Day
Closing day is our favorite part of the entire selling process! We will attend the closing and be ready to celebrate your sale when the final signatures are completed. Closing day will take place in one of two ways: at the title company or by a mobile notary. If you are unable to come in person to the title company, for a fee, a notary can come meet you at any location in order to get the closing documents signed. Because there are significantly fewer documents for a seller than the buyers, signing will usually take about 30 minutes or less.
After both parties have signed, the mortgage company will review all signed documents pertaining to the loan. Once they have confirmed that every signature is where it needs to be, they will issue the “funding authorization”, which allows the title company to release all funds appropriately.
Then, it’s time to celebrate! You have officially sold your home.
The Leaseback
It’s become more common, especially in a seller’s market, to have short-term leasebacks. This allows the sellers to stay in the home after closing for a length of time. The closing process is exactly the same as mentioned above, except for a few key differences as you play the role of tenant during this time.
Keep the utilities on and under your name until you move out.
If anything breaks in the house, it is still your responsibility to repair it.
Notify your insurance provider that you are going to be a tenant for this time period so that they can make the necessary adjustments to the policy.
Selling your home can be a lot of work, but closing week is when we see the payoff happen! We hope that this series of “What to Expect” has been helpful and better equipped you to navigate the buying and selling process. If you’d like to learn more about simultaneously buying and selling a home, check out our previous blog. If you’re ready to dive in and begin the process of buying, selling, or both, give us a call. We’d love to help!
Until next time,
Brianna and Keelie