In a previous blog, Bargaining Smart for Buyers and Sellers, we discussed the keys to great negotiating on both sides.  A successful negotiation will then lead to a contract, giving the buyer an option period.  An option period is when the buyer is able to look further at the property via inspections.  If the inspections come back with some needed repairs, the buyers can ask for the seller to either give a contribution to get the repairs done after closing or to have the repairs done before closing.  If the seller and buyer do not come to an acceptable agreement, the buyer can opt out of their contract without losing any earnest money.  Usually, sellers and buyers can agree on terms that will satisfy both parties, bringing the option period to a close and bringing them to the final step – closing.  Neither party is in the clear however, more problems can arise the days leading to closing, but you can be prepared!  We have some tips for both the buyer and seller to help facilitate a smoother closing.

BUYERS

Your job is considerably harder, so make sure you are organized and very communicative with your realtor and mortgage broker.

Get Your Utilities Under Control: Obtain homeowner’s insurance; flood insurance if you are in a flood plain.  Your policy should take effect days before closing.  Also, make sure the name on the utilities, i.e. electricity, gas, phone, is changed and have your service activated the day of closing.  You might want to verify that the seller has cancelled their service.

Schedule a Walk-Through: If inspections call for repairs to be made by the seller, make sure you schedule a final inspection of your property.  No need to hire another professional inspector; your realtor should accompany you, and make sure everything  looks the way it should before you sign on the dotted line.  If there are several extensive repairs, it would be best to schedule your walk-through a few days before closing in case repairs have to be adjusted.

Read All The Documents: Make sure all of your documents are in order.  This means read them – all of them!  This will insure you know your interest rates, how long they are locked in and how much money you have to bring to closing.  If you cannot understand any of the documents, contact your lender; that’s what they’re there for.

Checklist for the Day of Closing – be sure you have the following the day you sign the closing documents:

• A Cashier’s Check or money order for the amount specified on your final settlement costs statement.

• Your personal checkbook in the unlikely event other charges come up at closing

• Proof of homeowner’s insurance policy.

• Your lender’s good faith estimate.

• Some form of official government identification – i.e. a driver’s license, passport, etc.

SELLERS

Your job is much easier!  Turn off your utilities the day of closing; not a moment sooner!  Utilities must be on to perform the final walk-through.  Lastly, be sure to bring the following to closing:

• Keys, padlock combinations and garage-door openers.

• Codes to security system (if applicable).

• Owner’s Manuals to all appliances left.

• Checkbook for closing costs or other expenses paid by seller (as agreed to bv your final contract with the buyer).

Your best ally in buying or selling real estate will be a licensed REALTOR.  Don Puryear and his team of agents will stay on top of all the ins and outs of finalizing your sale.  Any questions?  Contact us, we’ll be here for you every step of the way!