Closing day is the final step in the home-selling process, and it can feel like both an exciting and nerve-wracking day. Here’s a step-by-step guide to help you understand what to expect and how to prepare for a smooth and successful closing.
Review of the Closing Documents
- What Happens: Before the big day, your lender (if applicable) or the closing agent will send you the closing documents for review. These include the settlement statement, which outlines the final numbers for both the buyer and the seller.
- What to Do: Carefully review these documents and ask your real estate lawyer for clarification on anything you don’t understand. This includes checking the final sale price, any credits or fees, and ensuring the buyer’s financing is in order.
Clearing the Property
- What happens: You are required to ensure the property is vacant and cleared of all personal belongings.
- What to expect: On closing day, you need to remove all your furniture, items, and garbage from the house. The buyer expects to receive the property in the condition agreed upon in the contract, including any agreed-upon repairs or cleaning.
Final Walkthrough (Buyer’s Responsibility)
- What Happens: The buyer typically schedules a final walkthrough of the home 24–48 hours before closing to ensure the property is in the agreed-upon condition.
- What to Do: Ensure the property is clean, repairs have been completed (if required), and everything is in place as agreed upon. If there are any issues, they should be addressed before closing day.
Handing Over Keys and Access
- What happens: On closing day, you will hand over the keys to the new owner.
- What to expect: The keys are typically left in a lockbox for the buyer to retrieve. Remember to leave all garage openers, mailbox keys, and any other items required for the home.
Sign the Closing Documents
- What Happens: You will sign a variety of legal documents, including the deed, settlement statement, and other papers that officially transfer ownership of the home to the buyer.
- What to Do: Be prepared to sign several documents. Make sure you understand each one, and ask if there are any terms you need clarification on. You may also need to sign forms related to the loan payoff and any outstanding property taxes.
Pay Closing Costs
- What Happens: As the seller, you are typically responsible for some closing costs, such as agent commissions, seller concessions, and repairs. These costs are typically deducted from your sale proceeds.
- What to Do: Review the settlement statement to see exactly what you owe. Your real estate lawyer will explain any fees that need to be paid before funds are disbursed.
Transfer of Ownership
- What Happens: Once all documents are signed and funds have been transferred, the title to the property will officially be transferred to the buyer.
- What to Do: Everything above should have been completed, with respect to clearing the property. Leave the keys in the lockbox and ensure you’re ready to vacate the property by the closing time.
Receive the Sale Proceeds
- What Happens: After all payments are made and everything is signed, you’ll receive your proceeds from the sale. This is typically done via wire transfer or a check.
- What to Do: Review the final amount you will receive to make sure everything aligns with your expectations. This money can be used for your next home purchase, investment, or any other plans you have.
Celebrate!
- What Happens: You’ve officially sold your home! After the paperwork is finalized and the sale is recorded, the buyer officially owns the property, and you are free to move on.
- What to Do: Take a moment to celebrate your success and the completion of this major milestone!
Closing day is the culmination of months of hard work, negotiations, and paperwork. With careful preparation and the help of your Realtor, you can navigate the process with confidence and ensure a smooth transaction.
If you’re in the process of preparing your home for sale or thinking of selling your home and need assistance or have questions about closing day, feel free to reach out! I am here to help get your home sold quickly and for top dollar!