Real Estate Investors Online

Whether you are selling your own house FSBO or for sale by owner or using an agent, the "count-down to closing" is the same.

You got a contract on your house. Inspections and the appraisal have been done. Requested repairs handled. The buyer's loan has been approved. The title search is clear. Now you can set a firm date for closing, the final step in selling your house.

Closing is a meeting between you, the buyers, real estate agents representing the buyer or the seller, and a settlement agent. Closing should last around an hour. However, they can take much longer, so don't have a plane to catch or bring small children!

Closings can be stressful because there are so many details that can and often do go wrong. Fortunately, most of them are fixable. Closings can also be boring because there is a lot of sitting around and waiting.

The better you understand the process and take action on the things you are responsible for, the less stressful the closing will be for you.

Counting down to closing, here is what you need to do:

1) Everyone on the title of your house needs to be at the closing. If this is not possible, talk to the title company well ahead of time about making other arrangements.

2) Call your gas and electric suppliers one week before closing and have the buyer do the same to transfer these services on the closing date.

3) When selling your house, you should always schedule a walk through for your own protection. You and the buyer meet at the property one last time just before closing and agree, "Yes, the house is in the same basic condition as when we signed the sale contract."

4) Be sure you have removed all your personal belongings as well as the for sale sign, brochure box, and lockbox. Leave the house in "broom clean" condition.

5) Make sure you leave any appliance manuals or warranties at the house. If you had put together a sales scrapbook, you might want to leave that, too (less any photos you care about). Leave leftover paint or paint chip samples, so the buyers can easily touch up. Walls always get dinged from moving. Your buyers will really appreciate this.

6) Being professional and considerate towards your buyers while selling your house goes a long way in smoothing out any rough spots.

7) The title company is required to get a copy of the HUD-1 Settlement Statement to you 24 hours before closing so you can review it. You might have to remind them. Take time to understand the HUD-1. This will make closing less stressful and could save you money. You need to be aware of what fees are legitimate and what are "junk fees".

At the closing, the settlement agent should go over the HUD-1 line by line, answering any questions you or the buyer has. If they don't, you have the right to ask them to. There'll be lots of documents to be signed, particularly by the buyer. The buyer will need to bring a money order to the closing for the balance of the payment. No personal checks allowed!

You need to bring all your house keys, any alarm combinations, and your driver's license. Towards the end of closing, you will present the keys to the house to the buyer. This will be an exciting moment for them. You should leave with a healthy check for your proceeds. This will be an exciting moment for you! You will also leave with a stack of paperwork that you need to keep in a safe place while you move. Selling your house has tax implications. You'll need these documents next year when preparing your taxes.

After you've closed, immediately cancel your homeowners insurance. If you offered to provide your buyers a home warranty while you were selling your house, have the home warranty company now transfer the policy to your buyers. You're done! Congratulations on selling your house!