When you’re selling your home, you have a lot to consider between the closing process on the home you’re selling, the moving process and the closing process on the home you’re buying. On top of that, it’s often an emotional process, whether you’ve lived in the house for several years or multiple decades. Being prepared is often the best way to prevent overwhelm. So, if you’re selling your home, read on to learn more about what to expect during the closing process.
What is the closing process?
The closing process is typically 30 to 60 days and includes all the steps to transfer ownership. The closing period begins once the offer is officially accepted. The final documents are executed on the closing day, and the property is officially transferred.
What are the steps of the closing process?
Once you accept the offer on your home and the contract is signed, the buyer’s attorney will order a title search. The completed report will be communicated to your attorney. The title search reviews public records to ensure you’re the property’s legal owner.
The buyer will arrange a home inspection for your home once the offer is accepted. Depending on where you live, the inspection is often required seven to 10 days once the contract is signed. Based on the inspection’s findings, the buyers may come back with items for you to repair or ask for credits to cover the cost of the repairs. Common repairs include:
- Installing radon systems.
- Making minor electrical updates.
- Mold remediators.
- Making updates to bring the home up to code.
Any updates you make as the seller need to be documented for the buyer.
If the buyer buys your home with a mortgage loan, the buyer’s lender will arrange for a professional appraisal. An appraiser will visit your home to ensure the property appraises for the agreed-upon sale price. If it appraises below the sale price, the buyer will have to either pay the price difference, you will have to lower the sale price or you can contest the appraisal with an attorney.
The buyer will conduct a final walk-through of your home 24 hours before the closing date. The buyer and their real estate agent will inspect the house for a last time to ensure that the home’s condition is the same as when they made the offer and during the home inspection. If there have been any significant issues, the closing date may be pushed back.
As the seller, you don’t always need to attend the closing. However, your real estate agent will provide you with plenty of paperwork to sign before the closing date. This also includes transferring the property’s deed to the buyers. Once all seller paperwork is completed, the buyer attends the closing and signs their required paperwork and the funds have been distributed, the property officially belongs to the buyer.