In the United States, there is an average of 14,630 homes sold every day. If you are looking to be one of those sellers this year, you most likely want to know how it all works. The process of closing on a sale may seem daunting but here is an outline of what you can expect.
What Is Closing?
The term “Closing” refers to the final step when selling a home. It typically takes an average of about 30 days to complete the process. The closing date is when the final paperwork is signed, and the official ownership of your home is turned over to the new buyer.
The Steps of Closing
The weeks following the acceptance of the buyers’ offer are busy. Lots of little details to be taken care of. Below is a list of the main things you should expect:
- Title Search & Title Insurance: Your agent will review public records to verify you are the legal owner of the property. You should then purchase title insurance. This protects you if later any past liens or claims are discovered against your home.
- Home Inspection: A professional home inspector will be sent by the buyer to inspect your home. They will be making a detailed report for the buyer of any possible repairs that should be completed before purchase.
- Repairs: After the home inspection, you agree upon which repairs you as the seller will complete prior to the closing date.
- Lender Appraisal: The mortgage lender of the buyer arranges for a professional to appraise your home. This is to ensure that your home is priced accurately according to current comparable houses in your area. The lender then decides whether to grant the loan to the buyer.
- Final Walk-thru: Shortly before the closing date, the buyer and their agent will do a final walk-thru of your home. They will be checking to see if all agreed-upon repairs have been completed and no issues have occurred since their last visit.
Closing Costs
Closing costs vary depending on your location and can be negotiated with your buyer. Typically, the seller is responsible to pay for the following:
- Taxes to transfer deed
- Outstanding liens or claims
- Commission of Real Estate Agent
- Title Insurance
- Recording fees
- Additional fees that may be split or paid in full include property taxes and homeowner association fees
Closing Day
Closing day is the final step. You’re almost there. There is generally a mountain of paperwork for the buyer. You, however, can ask your agent to provide you with most of yours ahead of time. So, on the last day, you should just have a few initials and signatures left. This typically all happens at the office of the escrow agent. On that final day you’ll want to bring a few things with you:
- Government-issued photo ID
- Keys to the home
- Any paperwork you’ve already signed
With the keys being given to the new homeowner, you have successfully navigated the process of selling your home. Congratulations on joining the over 14,000 in the US that have already done it today.