When closing on a home sale, a seller can expect the following steps and considerations:
1. Review of the Settlement Statement:
- The seller will receive a Closing Disclosure document outlining all the financial details of the transaction, including the purchase price, mortgage payoff, taxes, fees, and net proceeds. Review this carefully to ensure accuracy.
2. Final Walkthrough by Buyer:
- Typically, the buyer will do a final walkthrough of the property within 24 hours before closing to ensure its condition matches the agreed-upon terms.
3. Closing Meeting:
- In-person or virtual, this meeting involves signing all the required documents, including the deed, title transfer, and closing statement.
4. Payment of Closing Costs:
- Sellers are usually responsible for certain closing costs, such as:
- Real estate agent commissions paid by seller (typically 5-6% of the sale price, split between buyer and seller agents)
- Transfer taxes or recording fees
- Outstanding property taxes or utility bills
- Homeowner association (HOA) fees, if applicable
5. Mortgage Payoff:
- If there’s an existing mortgage, the balance will be paid off using the sale proceeds.
6. Transfer of Ownership:
- The title and deed are transferred to the buyer, officially making them the new owner of the property.
7. Receiving Sale Proceeds:
- After all fees and payoffs are deducted, the seller receives the net proceeds, usually via wire transfer or check.
8. Handing Over Keys and Documents:
- Keys, garage door openers, manuals, and any necessary documents are handed over to the buyer.
9. Post-Closing Considerations:
- Cancel homeowner’s insurance after confirming the transfer of ownership.
- Notify utility companies and change your address with the post office.