- December 29, 2023
- Reading time about 7 minutes
If you are someone dealing with the real estate industry, you know how important is the closing day for real estate transactions. This is when all the paperwork is cleared, funds for the property purchase are completed, and property documents are handed over. However, many steps must be taken to ensure that the new homeowner gets the key at the right time. This means if you fail to abide by the requirements, it can lead to a delay in the closing of real estate, increasing the risk that a deal could fall through.
We all know that real estate transactions involve a list of documents and endless tasks that need to be completed on time, which can be quite complicated and take lots of time. In this blog, we have come up with the Closing Checklist For Realtors to ensure that all processes are done and that everything works as planned for timely and faster property sales closure.
Checklist To Be Followed For On-Time & Efficient Real Estate Closing Process
In this section, we have shortlisted steps to be covered for seamless property closure, which will give your clients a better chance to understand each step for more clarity before selling the final real estate transaction.
We have divided the list into two parts – 1 to 2 weeks before the closing Checklist and the Closing Week Checklist for realtors.
Checklist to Keep in Mind 1-2 Weeks Before Closing
1. Review Contingencies
In several cases, property sale agreements are contingent upon many conditions. This may include many types of contingencies such as a new home or property inspection, which is done by the professional team to review the property thoroughly to reveal any issues or problems.
Additionally, you can review an appraisal contingency where an appraiser is hired by a third party to evaluate the property market value. If the market value is less than the sales price of the property, the contingency enables buyers to step back from the deal without losing their deposit money. Ensure that you review if the accepted offer includes any such contingencies and buyers have been satisfied before the closing date.
2. Assess and Confirm Repairs
If there is any property repair that the buyer and seller have agreed to undertake, ensure that it is completed on time with the confirmation. Some of the common things that need repairing during the sale of the new property are-
– Ventilation & Air Conditioning (HVAC)
– Home’s Structure & Foundation
– Plumping Work
– Electrical Wiring & Fixes
– Windows & Door Fixes
– Wall Paints
Post verification, the real estate agent must take the necessary steps to request a receipt for the work printed on the contractor’s letterhead.
3. Utility Setup is Up & Running
Though power and water are not the top things that must be on the mind of the buyer before closing, it is important to note that they will need their utilities up and running after closing, whether they plan to move in immediately or renovate for the future.
Take time to ensure that buyers have scheduled any servicing or arrangements that are needed to transfer their accounts before closing.
4. Make Sure the Property Title is Clear
Ensure that the property is free from encumbrances so that the ownership transfer can be done successfully. Problems can be associated with bankruptcies or outstanding judgments & liens that can legally interfere with the property transfer.
Make sure that the title company or real estate lawyer examines the public and other records from decades to confirm the property is free and clear. After conducting the title search, the buyer can choose to purchase the title insurance, which helps to protect themselves against any issues that may come up after closing.
Checklist to Keep in Mind for Closing Week
5. Go for a Final Walk-Through
The first thing to do in the closing week is to ensure that the buyer takes all the necessary steps to verify that all conditions agreed in the sales agreement are met. This final walkthrough will help buyers get an opportunity to check all appliances in the sale work perfectly, verify all agreed-upon repairs are done as expected, and ensure that there is no unexpected damage leading to the real estate sale.
If any other repairs have been done, the buyer can check a second inspection of the home to ensure everything is completed perfectly.
6. Confirm All Financing Details
Ensure that there is confirmation from the buyer’s side that all the financing has been sorted before closing to avoid any unwanted scenarios. This can include various things such as ensuring all financial conditions on the mortgage lender part have been waived, the interest rate has been set, and ensuring the client knows the payment amount and schedule.
Once the funds transfer is done, confirm with the real estate lawyer who is closing the deal. Make sure that any pending payment that needs to be made before closing is done.
7. Review Settlement Statement
To avoid dealing with end-moment delays, get a copy of the settlement statement from the closing attorney, which will ensure all the details are correct and in order before closing.
You can review by getting accurate details of deposits from the buyers, credit details from the seller and the remaining amount to be paid during closing.
8. Make a Closing Checklist for Buyer
To make sure that your client has the information for future needs, create a closing checklist that can be kept as a reference. You can collect relevant documents from the real estate transaction like copies of completed sales contracts, settlement statements, and any other additional paperwork into a folder to give your client after closing.
As a realtor, you will get a good chance to earn referrals in the future for your excellent customer service and help buyers settle properly into their new homes.
9. Confirm Closing Details
The last step is to confirm the details of closing with the client a few days before finalizing the deal. Make sure that buyers and sellers have all the desired documents to bring with them and the time & location for the meeting.
For instance, sellers may need to bring things like home keys, garage openers and other things to be handed over to the new owner.
Final Takeaways
Whether you are planning to buy or sell a property, you can make the property closing process quick and seamless by following the tips stated above. By keeping track of every action, you can ensure that you make the property sale closure take place on time.
A good real estate online auction platform like BidHom that follows an effective workflow management process can help buyers and sellers keep track of every step involved in the deal process, including those leading up to closing day. This will not only ensure optimal efficiency and accountability but also give you an edge over managing checklists on paper by using checklist templates for different types of real estate deals.
Need help to overcome complicated property closure processes? Book a demo of BidHom to see how our real estate management platform can help you improve your workflow and follow checklist for realtors that help you close deals faster and more efficiently.
