How to Avoid a Stressful Closing

Estimated reading time: 4 minutes

The average time between an accepted offer and closing for a residential purchase is 30-45 days, and a lot of activity happens during that time. As a seller, you will most likely encounter an inspection, an appraisal, and perhaps even the need to repair some items prior to closing. While real estate transactions can be complicated, I make it my goal to keep the complications and stress to a minimum. This article may help you understand what to expect as well as what can be done to make the closing as smooth as possible.

While there are several reasons a home closing may be delayed, the top 5 reasons include:

  1. The buyer fails to secure financing, or the funding is delayed.
  2. The home inspection reveals an unexpected issue.
  3. Your home does not appraise for the value being offered.
  4. There is a problem with clear title to the property.
  5. The survey reveals a property dispute, encroachment, or undisclosed easement.

Before the actual closing, I will track the satisfactory completion of all contingencies and conditions required under the purchase agreement and inform you regularly of the transaction’s progress. Then I will arrange the buyer’s final walk-through inspection of the property before the closing date. Finally, at closing, I am your advocate! While not all closing activities are in your control, the following items are some steps you can take to ensure all goes well at the closing table.

CLOSING DOCUMENTS
First, review the Closing Disclosure you will receive at least three business days before the closing date. It outlines all the fees and charges associated with the transaction, including the purchase price and other closing costs. Please review it carefully to ensure that everything is accurate so there are no surprises, and reach out immediately to me if you have any questions.

CLOSING LOCATION
You should confirm the time and location for the closing and arrive on time prepared with any supporting papers you may want to bring in case of any questions or concerns by anyone at the closing table. In addition, you must bring a government-issued photo ID such as a driver’s license or passport.

CLOSING FUNDS
If your equity does not cover the closing costs, bring a cashier’s check for the funds stated in the “Cash to Close” section of the Closing Disclosure Document. When presenting a cashier’s check, the funds are available to the recipient the next business day, and since the bank backs the payment of the check, it will clear. Personal checks are not accepted.

Another option is to wire the funds to the settlement agent. While most domestic wire transfers are completed within 24 hours, make sure to account for business days, holidays, and specific hours when sending a wire transfer, as the cutoff times for accepting a same-day wire transfer may create an unnecessary delay.

IMPORTANT NOTICE: Cybercriminals are always trying to hack email accounts and send convincing, sophisticated emails with fake wiring instructions. Never trust wiring instructions sent via email. Always confirm wiring instructions independently in person or via a live phone conversation to a trusted and verified phone number before the wire transfer is initiated. Never wire money without double-checking in person that the wiring instructions are correct. If you are asked to wire money before closing, be sure to call me first to verify that the recipient information is accurate.

TITLE REPORT
Read the title report showing the ownership history and any liens or other issues that may affect the property’s title. Please review it carefully, and if you have any questions about the closing process, the title report, or the settlement statement, don’t hesitate to ask the settlement agent or me for clarification.

PROPERTY ITEMS
You will need to bring all sets of keys, garage door openers, any gate codes, alarm codes, and any other necessary documents or information the new buyers will need to safely and securely take possession of your home.



ENSURING A SUCCESSFUL (AND SMOOTH!) CLOSING
At closing, you will sign many documents, including the deed and the settlement statement. As always, you should read each document carefully before signing, and don’t be afraid to ask questions if something is unclear or doesn’t make sense to you.  Once all the documents have been signed and the funds have been transferred, the possession of the property is transferred to the new owner.

Please remember that I am available to answer all of your questions. I will also make sure that the settlement agent is doing everything correctly because I am there to advocate for your best interests. Following these steps and preparing for the closing day can help ensure a smooth and stress-free ownership transition for you!