CLOSING THE SALE
Home Stretch: The Seller's Guide to Closing
Closing day marks the culmination of your home selling journey! Here’s a breakdown of the experience from a seller’s perspective, highlighting the key steps leading up to and including the big day:
Prepping for Closing:
- Completing Repairs and Inspections: Ensure any repairs identified during inspections or negotiations are completed before closing. This demonstrates good faith and avoids any last-minute delays
- Gathering Documentation: Your realtor or title company will provide a list of documents you need to bring to closing. This may include proof of ownership, government-issued ID, social security number (for tax purposes), and loan payoff information (if applicable).
Working with the Title Company:
- Title Search and Title Insurance: The title company conducts a thorough title search to ensure there are no outstanding liens or ownership claims on your property. They will also likely recommend title insurance to protect you from any unforeseen issues.
- Closing Disclosure and Understanding Closing Costs: A few days before closing, you’ll receive a Closing Disclosure (CD) detailing the final settlement charges, including realtor commissions, closing fees, taxes, and any outstanding loan payoffs. Review the CD carefully with your realtor to understand all the closing costs involved.
Final Walkthrough:
One Last Look: Buyer will schedule a final walkthrough of your home shortly before closing. This allows buyer to verify that the property is in the same condition as when you agreed to the sale and that any agreed-upon repairs are complete.
Closing Day:
- Signing Documents: The closing will likely take place at a title company office or attorney’s office. Be prepared to sign a significant amount of paperwork that officially transfers ownership of the house to the buyer.
- Receiving Payment: Once all documents are signed, you will receive the net proceeds from the sale, minus any closing costs and outstanding liens. This may be a check or a wire transfer depending on your preferences.
- Transferring Ownership: The title company will officially transfer the ownership of the property to the buyer. Congratulations, you’ve sold your home!
Remember:
Your realtor can walk you through each step of the closing process and answer any questions you may have.
It’s a good idea to arrive early for your closing appointment to avoid any last-minute delays.
By being prepared and informed, you can ensure a smooth and successful closing experience, marking the end of one chapter and the exciting beginning of the next!
POST-CLOSING CONSIDERATIONS
While closing day signifies a major milestone, there are still a few post-closing considerations for sellers to address:
• Final Bill Payments and Cancellations:
(1) Pay any outstanding utility bills, property taxes, or HOA fees up to the closing date.
(2) Cancel or transfer utilities like trash collection and cable to the new owner.
• Forwarding Mail and Updating Accounts:
(1) File a change of address with the post office to forward your mail to your new residence.
(2) Update your address with banks, credit card companies, and other relevant subscriptions or accounts.
• Tax Implications:
Consult with your tax advisor to understand how the sale of your home may impact your taxes. Capital gains taxes may apply depending on your situation.
• Returning Keys and Garage Door Openers:
Ensure all keys (house keys, mailbox keys) and garage door openers are returned to the buyer or their realtor as agreed upon in the closing documents.
• Home Warranty (Optional):
If you included a home warranty as part of the sale, cancel the warranty and ensure any refunds are handled appropriately.
• Moving Logistics:
If you haven’t already, finalize any moving arrangements and ensure a smooth transition to your new home.
• Additional Considerations:
Mortgage Payoff: If you used the proceeds from the sale to pay off your existing mortgage, you’ll likely receive a confirmation from your lender.
Unresolved Issues: If any issues arise after closing, such as repairs not completed by the buyer, address them promptly based on the terms of your sales agreement.
Remember, your realtor can be a valuable resource even after closing. They can answer any questions you may have and help ensure a smooth transition for both you and the buyer.
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