Comprehensive Closing Checklist for Home Sellers

Getting ready for closing

To solidify an offer, you must sign a purchase contract. This legal document details the terms of the agreement, such as who keeps the home appliances, the buyer’s inspection period, the amount of money the buyer is putting down, and the closing date.

As soon as both parties sign the contract, an earnest effort to meet the agreed-upon deadline is set in motion.

“From the time a property is put under contract to the time it closes, an agent or a transaction coordinator makes, on average, about 42 phone calls,” said Shaun McCarthy, a top-selling agent in New Orleans, Louisiana, who sells more than 78% more single family homes than the average local agent.

In most cases, the first order of business will be a home inspection arranged by the buyer.

Some sellers choose to have their homes inspected before the buyer’s inspection to get ahead of any potential repairs, but McCarthy doesn’t recommend doing this.

“We don’t want sellers coming out of pocket with money to replace something that may not make a difference to the buyer coming in,” McCarthy says.

If your buyer asks for repairs based on the results of their home inspection, you’ll sit down with your real estate agent to negotiate these repairs. Depending on the situation, you might agree to the repair requests and complete them quickly, agree to part of the requests, or deny the repairs altogether. Make sure to speak with your agent to determine what’s fair — and best — for your situation.

If the buyer is financing the purchase, a home appraisal is next on the agenda. This will yield an appraisal report, which provides an objective, third-party assessment of the home’s value.

If the appraisal falls short of the contract value, there are several possible outcomes: the buyer can bring more cash to the table to fill the gap, you can lower the price to match the appraisal, or both parties can agree to meet somewhere in the middle. If a home appraisal contingency was added to the contract, the sale could also fall through if the parties can’t reach an agreement.

Once over these hurdles, then you’ll want to make the following preparations for the closing day:

Clean your home one final time, taking special care to check drawers and closets for items left behind.

Gather documents for appliances and other items (i.e., warranties, manuals, receipts for appliances, roofing, heating, cooling, plumbing, or other projects you’ve had done to the property).

Shut off the main water valve to the property.

What sellers should bring to closing

It’s time to seal the deal. In anticipation of the closing meeting, go through this list of items and make sure everything is readily available.

Photo identification of all sellers on the home contract (have two forms of ID)

Keys and/or security codes for the home and any remotes for appliances (i.e., garage door, HVAC, motorized window blinds, etc.)

Final utility bills to be paid

Cashier’s check to cover closing costs if you didn’t wire the money already

Personal checkbook in case there are any unforeseen costs to take care of

Proof of repairs made per the home inspection

Check with your agent before the closing day to confirm this is all you need. Every state and individual sale can vary slightly when it comes to closing necessities, so there may be additional items to bring based on your situation.

All other essential documents required for the meeting, such as the closing statement, seller disclosures, deed to the home, and purchase contract, will be handled by your real estate agent, escrow agent, or attorney.

Once at closing, you and your team will sit with the buyer and their agent to sign all the paperwork and settle the closing costs.

Seller expenses at closing

Aside from any remaining mortgage balance, sellers can expect to pay about 5-10% of the home sale price in closing costs. These include the following:

• Real estate commission (typically around 3-6%)
• Taxes, utilities, insurance
• Escrow, title, and attorney fees
• Warranty payment, if required
• HOA dues, if applicable

The expenses listed above are typical but may not be all-inclusive. Depending on the details of your home sale, you may have additional paperwork to sign or fees to pay. Fortunately, this is one area where your agent will take the reins and let you know what’s required.

If you net a profit after your loan and all agent commissions are paid, you’ll receive a check for the balance at closing. If not, you may need to bring a check to the meeting. Ask your agent for an exact total so you can prepare a cashier’s check in that amount.

Final to-do list

Once your home’s closing is complete, it’s time to wrap things up. You should have received a package of closing-related paperwork to file away, along with a check for the proceeds of the sale (if applicable). What’s next? Check out this list of final to-do’s before saying goodbye to your former property.

Change of address. Notify every business, utility, and person you can think of that you’re moving, and of course, update your address with the post office.

Cancel your homeowner’s insurance policy. Do this after the title has been transferred. If you’ve prepaid, you may receive a refund.

Cancel utilities.

Do you need an attorney?

Some states require an attorney to be involved during the closing process. And even in states where an attorney is not required, hiring one for the final proceedings can be a good idea to ensure nothing is overlooked and that any unanticipated issues are resolved quickly. In this case, a closing attorney would act on behalf of the title rather than the seller; hiring a seller’s attorney to represent your interests would entail additional expenses for the seller.

“We act as a neutral intermediary,” said Conway Bellone, a former real estate attorney with True Title in New Orleans, Louisiana. “We make sure the title is free and clear of any liens or encumbrances. That then allows us to facilitate the real estate transaction where we make sure the money and the keys are exchanged, and we just make sure that the real estate transaction happens at the end of the day.”

Header Image Source: (Matthew Addington / Death to the Stock Photo)