For Sellers: What to Expect on Closing Day
Phew, you've made it to closing day! No more keeping your home spotless and staged for those pretty inconvenient, last-minute showings. You've put in all the hard work and closing day is the last thing standing between you and moving on to your next chapter. You may remember clearly how closing day unfolded as a homebuyer, but what exactly is in store for a seller on closing day?
Closing Day
You've accepted the buyer's offer, made all of the agreed upon repairs and the final walk through is complete. Usually the next few steps go smoothly. All of the negotiations should have been hashed out by now — just keep in mind closing day negotiations can and do happen, which could result in a delayed closing of from one day to a week.
Depending on your location, you may be required to attend the closing or you may be able to sign the paperwork prior to the actual closing meeting. Either way it's important to ask the closing officer to provide you with a copy of the paperwork for you to thoroughly review before you are asked to sign them. Take your time reviewing everything as this is the last time to alert them to any errors, ask questions and make any necessary changes.
If you are required to attend the closing you will likely meet at the office of the escrowee. At the meeting, you can expect to see the buyer, the real estate agents (both yours and the buyer's) and the real estate attorney or escrow officer.
Important Items to have for Closing
In all of the excitement don't forget to bring these few important items with you to the meeting.
- Your photo ID
- Paperwork requested from the closing office
- Any keys, garage door openers or security codes (if you plan to transfer possession of the house at closing)
- Leave any appliance manuals in a drawer in the kitchen or laundry room before you pack them up with your belongings (a nice thing to do for the new buyers)
Closing Day Paperwork
During the meeting there will be lots of paperwork for the buyer to review and sign. However, you as the seller will only have a handful of papers that need your signature. Let's review some of them.
Closing Disclosure
Affidavit of Title
This basically states that you have the right to sell the property.
The Deed
The name of this form varies by state but it's the document responsible for transferring the title.
Loan Payoff
This shows the amount left over from your loan that you owe back at closing.
Bill of Sale
This lists out any personal property (think your refrigerator or old sofa) that you agreed to leave (or sell) to the buyer. Double-check this list for accuracy on both items included and associated prices.
Wrapping Up Your Closing
The next part will be the best of the meeting — getting paid! The escrow company will pay off any outstanding balance on the mortgage, taxes and any other fees from the sale amount. Once this has been done you can expect to receive the remaining amount via check or wire transfer.
And just like that, you've sold your house! Ownership has now been transferred to the buyers and unless other terms have been agreed upon, you should be ready to hand over the keys.
Closing day is an exciting one for both the homebuyer and seller as it signifies new beginnings for both parties. Although it's easy to get caught up in the excitement, it's very important to pay close attention to all of documents that you are signing. While you as the seller won't be required to sign nearly as many documents as the buyer — make sure to check, and double-check that everything is correct. Now the only thing left to do is to get ready to move on to your new adventure!
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