Selling your home is a major undertaking that involves navigating a lot of legal, financial, and personal factors you might not have to deal with at any other time. A trusted real estate agent is your best partner in selling your Bucks County home, but it’s also good to be prepared and educated so that you can make the most of this partnership. In this article, we’ll go over the basics of closing from a seller’s perspective so you can be ready when it’s time to go through the closing process with your home.
What is “closing”?
Closing is the final stage of the process of selling your home, where money is exchanged and documents are signed to transfer the ownership of your home from you to the buyer. On the closing date, the transfer will be complete, and the property will now officially belong to the buyer.
What happens leading up to the closing date?
The first thing you need to do after you accept a buyer’s offer is provide proof that you are the legal owner of your property, and resolve any issues surrounding the property, like claims or judgements. This is done by working with your closing agent to do a title search to show you are the rightful owner of the property and to surface any unresolved issues you’ll need to attend to. The new buyer and their lender will also need to obtain title insurance policies.
Next comes the home inspection. While this is not absolutely required, it is the norm, and most buyers will want the inspection to make sure the home they are buying is sound and without major issues.
One other important step that must take place before closing is the lender’s appraisal. If your buyer is borrowing money to purchase your home, their mortgage lender will want to see the results of a professional appraisal to ensure that the amount they are lending matches the value of the home.
What is the purpose of the final walk-through?
Generally, a day before closing the buyer will make a final walk through of the property that will soon be theirs. Accompanied by their real estate agent, they will take one last look to be sure that everything is the way it should be—that you’ve made any required repairs and removed your personal items so the house is clean and ready to be moved into.
What happens on closing day?
Closing day is all about signing documents and disbursing funds so the legal ownership of the property can be transferred from you to the buyer. This usually takes place at the office of one of the agents involved, like your escrow or title agent, or at your attorney’s office. Some states may allow you to sign the documents in advance so you don’t have to be personally present for closing.
This brief introduction will give you a basic understanding of the closing process, but your real estate agent is your best resource for making sure that you understand your responsibilities and rights as you conclude the sale of your home. Talk to your real estate agent today to ensure as smooth a sale—and closing—as possible!
