What does a seller do at closing? Does he wave and flash a smile? The closing is an important day for you as a home seller. You will transfer the property to the buyer, fully pay off any mortgages, and receive your sales proceeds. If you are using the proceeds for a new home purchase on the same day or shortly after that, it is particularly important that your closing runs smoothly.
Until the deal is closed and the new buyer takes possession, you’re responsible for maintaining the home. For the most part, you’ll be left alone during this period. You’ll have to make the house available for inspections and appraisal. If you agreed to make repairs to the property, lace up your shoes, and take action before closing. The exception would be if you and the buyer made a separate contract for the work to be completed at a later date.
According to Money Under 30, “A closing agent, a neutral third party, such as a title company or a real estate attorney, handles the closing. At a closing, significant events include: Transferring the home’s title (and the keys) from the seller to the buyer, and the proceeds of the sale distributed to the seller.”
Unlike the buyer, who may have to attend the closing to sign original loan documents delivered by the lender to the closing, you, as the seller, may or may not stream the finals.
For either a conventional escrow closing or a table closing, you may be able to pre-sign the deed and other transfer documents. You may even give your attorney a power of attorney to sign any related documents for the escrow. Your sales proceeds can be wired directly to your bank or your new home purchase escrow if you are purchasing on the same day as, or shortly after, your sale. Before your closing date—often 24 hours before—the buyers and the buyers’ agent will do one more walkthrough of the house. Take your apron and go (for which you should not be present). In most cases, the buyer is just looking to make sure agreed-upon repairs were made, and no new issues have crept up before closing.
After a completed closing, you are no longer the owner of the property. Unless the contract or another side agreement states otherwise, you must relinquish possession of the home by giving the buyer all keys, garage door openers, and all other devices that control the home’s systems and appliances.
The buyer expects to move into the house and find it broom-clean unless you have made another agreement with the buyer.
For sellers, there are always fewer line items to string together on the closing statement. But the seller generally bears the biggest brunt of the fees: the real estate commission.
A percentage of the total sale price goes to the real estate agent as a commission, so it tends to be the most significant fee. In addition to the real estate commission, sellers may have to pay the balance of their property taxes if they haven’t done so already, as well as any prorated homeowners association dues.
We buy and sell properties throughout the greater Kansas City area. We specialize in buying distressed homes, then renovating and reselling them to home buyers and landlords. Terra Firma Property Solutions: we are excited to be part of the economic rejuvenation of Kansas City and its surrounding areas.
Call us today at (816) 866.0566