Seller Preparing for Closing
Updated: 3 days ago
In this article, I'm preparing sellers for closing.
Keep in touch with your closing company.
Be sure to keep in communication with your closing company, especially during normal business hours when they are better reached, asking them if there is anything that they need. For instance, it is important to ask them about whatever wiring information is needed. One company I've worked with has stated that they "will only accept wiring instructions on our notarized proceeds authorization form delivered with the original deed package. Deeds are to be in our office by 11 am the day before closing."
Scheduling document signing.
If closing out of town:
It's important for you to set things up for closing with the closing company with advanced notice since mail will be overnighted in order to make the closing happen from a distance. With your outgoing mail for closing, be sure to record any tracking numbers. Closing from the seller side occurs typically prior to the day of closing for the buyer that's in the contract. Closing can occur at the closing office or with a notary. With sellers, a notary is sometimes freely available, such as with some local banks or if you know someone who is a mobile notary that's not part of the transaction.
If closing in town: While closing for buyers typically occurs on the closing date in the contract, closing for sellers typically occurs the day prior to that, or long before that when you have things ready and when the buyers are "clear to close" with their lender (if not a $ deal). Closing can occur at the closing office or with a notary. With sellers, a notary is sometimes freely available, such as with some local banks or if you know someone who is a mobile notary that's not part of the transaction (i.e. if I was a mobile notary I couldn't help, otherwise I'd become a notary).
You'll need your driver's license or another similar form of ID (i.e. passport). You'll also need to know your social security number.
Verify that you've met all your contractual requirements.
Go through the contract &/or your responsibilities & obligations checklist to ensure that you've fulfilled all of your contractual requirements.
Get Your Proceeds
At closing or before you can arrange with the closing company how you'll be getting your proceeds. Options often include pick up, wiring (with some companies), or overnight mail.
If picking up your proceeds, be sure to have a picture ID like a driver's license. Typically proceeds are available within 2 business days of the buyer's closing. If picking up & you haven't been notified by then, contact the closing company. Be mindful of fees for doing something other than picking up your proceeds which vary according to the buyer's closing company. If someone other than you is picking up, be sure to let your closing company know their name.
Get any remaining paid receipts/reports to your agent if applicable (i.e. work done to house per the inspection contingency removal addendum or elsewhere in the contract).
In the event that I don't have all paid invoices/receipts/reports from your end (i.e. inspection repair request completed work if applicable, termite/moisture invoices if applicable, etc.), it's best to send any remaining one(s) to me prior to buyer walk through inspection. In the event that payment is made within 2 business days prior to closing, it's not a bad idea to wire it or use other certified funds like a cashier's check instead of using a credit card in order to ensure that paid receipts are available prior to closing. On one occasion work was completed the day prior to closing for a seller, which was a Thursday, the seller paid with a credit card that Thursday, but we didn't receive a paid invoice from the termite/moisture company until Monday, slowing down the disbursement of funds to the seller and annoying the buyer/buyer's closing company.
Caveat When Seller or Buyer Possession Agreements Are In Place
When a seller or buyer possession agreement is in place, keep in mind that much of the below will be thrown off in timing. Refer to the terms of the seller or buyer possession agreement regarding timing.
Initiate mail forwarding if you haven't already (especially owner occupants).
Especially if you're an owner occupant, and sometimes for landlords, you might want to go ahead and look into mail forwarding to your new address so that once you have a new address to send to you can pull the trigger. It's also best to change the addresses especially with important institutions like banks and anywhere that bills are paid, because mail forwarding is for a limited time only.
If in Town: Send pictures of items left at house not in the contract & send to your listing agent in advance.
For any items that will be left at the house that are not in the contract, such as undesired paint cans, furniture, cleaning supplies, pesticides, air filters, flooring, siding, etc., if you could send me information and pictures that I can relay to the buyer's agent, that is ideal.
There are some items you don't need to take pictures of that buyers typically love to see left in homes. These include:
1. Any remaining keys to the home not provided to your agent already
2. Any warranty information or instructional information regarding home fixtures
3. Any instructions or tips that you want to leave the buyers, such as neatly printed labels on light switches that you already had present when you lived in the home.
There are certain items that shouldn't be removed from the home/property unless written into the contract. Built-ins and anything explicitly listed in the contract typically shouldn't be removed. If you have any perennial bushes, trees, or otherwise, these should not be removed. Conversely, it's no problem to harvest berries from a bush or to remove plants that would die at the end of the year like in a typical vegetable garden.
Move items out and clean prior to the buyer's walk-through inspection.
Buyers usually perform a walkthrough inspection 12 hrs to 5 days before closing on a vacant home or 12 hrs to 48 hrs ahead on an occupied home if the seller is vacating immediately prior. There is a walkthrough report for them to fill out to make sure that (if applicable) all repairs/modifications are completed appropriately, all personal property not conveying with the home is out, all personal property conveying is present, and everything else is in order as it was during the inspection time, or better. When this form is filled out, often, but not always, it will be sent to the listing agent for seller signatures. You don't need to sign unless they are asking for anything to be done or where the buyer's agent is specifically requesting it, in which case we can discuss prior. (if you occupy the property or applicable to tenants occupying the property)
At this point, if you haven't already started packing I'd suggest it. While there is a chance that something could happen between now and closing that could make things fall apart (i.e. if the buyers lost their job, bought a car on credit if that would push them over the limit of their DTI, etc.), it's unlikely. It's best to arrange moving in such a way that it can be shifted without penalty if possible even though we don't anticipate any delays. It's also best to have any/all items moved out by 9 AM the day prior to the official closing date (by 9 AM Sat if closing on Monday & also an extra 24 hrs before if the day prior to closing is a federal holiday). Walk-through inspections are best done with an empty house though if it's to be done 5 days prior to closing and it's difficult for you to get things out by then, it's perfectly fine to continue moving items out until closer to closing. Also, please let me know when you expect to have the home ready for walk-through & again once your move-out is complete so that I can update the buyer's agent.
Schedule utility cut-off to occur. See details on when.
It's a good idea to have all of your utilities scheduled to be cut off the business day after the buyer's closing, but when you set that up is a delicate matter since sometimes the closing date will shift.
Contact the utility companies after the later of the following 3 times:
1. the buyers are clear to close (if buyers are using a mortgage),
2. after any title issues have been resolved after the title search has come back,
3. or 6 business days prior to closing,
4. after any repairs or other contractual obligations of yours have been fulfilled
Typically the buyer will already have theirs set up for the day of closing, but there are some cases where buyers will milk a seller's utilities as long as they don't stop the utilities. That said, if closing gets delayed, be sure that utilities know that they shouldn't cut the utilities off until the business day after the buyer's closing date.
Related:
1. Owners
2. Utilities List for SE VA (Primarily Hampton Roads)
3. When Buyers Will Typically Perform a Walk Through Inspection