FINAL WALK THROUGH

“PRE-LOVE” HOME

Typically, on the day to one hour before closing you will perform what is called a "walk through.” The property will likely be empty of the seller’s personal property so you can view the home one last time before you close. During this time you are looking to see if the property remained in the same condition that it was when you placed it under contract.

If you do find damage that wasn't there at the time you placed the property under contract, it's up to you to prove the change. The best way to do this is to use your inspection report and the pictures and videos you took during the due diligence period. If you are unable to prove the change, you will have little to no recourse.

If the seller was required to make any repairs before closing, this is the time you can confirm all the repairs are made to your satisfaction. If you find out after closing that the seller did not properly make a repair you will have NO RECOURSE. If you don't feel comfortable in evaluating the repairs, you will need to hire a home inspector or specialist to review the repairs (your agent is not responsible or able to evaluate the repairs).

If you are unhappy with the condition of the property during your walk through, your agent will work with the seller to work toward a satisfactory solution for all parties before closing. As a buyer, your only real power is the threat of not closing. Once you close, your purchase and sales contract is no longer enforceable unless stipulated otherwise.

NEW CONSTRUCTION HOME

When purchasing a newly constructed property, the walk through process typically occurs in two steps. Normally a week or two before closing, the builder or their rep will reach out to do a “punch list walk through.” It is during this first meeting that you will walk through the property and point out imperfections you find that will be added to the builders “punch list.” The builder will typically repair or replace the punch list times before closing.

When finding punch list repairs, most builders obey the “6ft” rule. It states that if you can't see the imperfection from 6ft away, then the builder will not repair it. At the end of the walk through, you will sign the punch list. Once the punch list is signed, no new items can be added.

A day before or hours before closing, you will typically do one more walk through. It is during this time you are looking to make sure all items on the punch list have been completed by the builder. During this time, you will not be able to add additional times to the punch list. Any newly discovered imperfections will be items you will need to live with or have them fixed after closing by your own contactor.

Sometimes items are on backorder or the builder is unable to complete all the repairs before closing. If this is the case, you and the builder will sign an amendment to the contract that will survive closing. It will state what those items are and when they should be completed. Unlike a resale, an incomplete punch list is not a legal reason for the buyer to delay closing.

Buyer Walk Through Checklist

WIRING FUNDS

RECEIVING WIRING INSTRUCTIONS

We will NEVER give you wiring instructions. You must request your wiring instructions directly from the closing attorney. We encourage you to pick up a printed copy in person at the closing attorney's office. If you are unable to pick up a physical copy, then we strongly encourage you to confirm the wiring instructions over the phone before you send any funds. REMEMBER, once you wire funds you CANNOT get them back!

WHEN TO WIRE FUNDS

Three to one day before closing, you will receive an e-mail from the closing attorney or your lender stating the amount that you will need to wire to the closing attorney. Any amount $5,000 and over must be wired by law, any amount under $5,000 you may write a personal check for. However, the closing attorney reserves the right to deny your check and request the funds to be wired. We STRONGLY recommend you wire funds at least the day before closing (especially wiring funds from a large national bank).

Remember that a wire (known as a Fedwire) is different from a transfer or ACH. Most banks will require you to request a wire in person. Additionally, most lenders will require the funds to be wired from another account located within the United States. If your funds are coming from outside the country, you will need to contact your lender ASAP. After the bank has sent the funds, they should be able to provide you with a confirmation number. If you wire too much money, the attorney will return the overage at closing in the form of a “trust account” check.

CLOSING

Often the official closing on a home is not as dramatic as you might expect. By this time, the loan approval has been completed and mortgage documents signed. The close is really just the day the title transfers from sellers to buyers. This is accomplished in a series of steps which involve:
- Funding the loan
- Reconciling the funds and paying the seller
- Title change and recording

In general, closings take about an hour. If the buyer is paying cash for the property, the closing will be shorter. Most closings take place at an attorney's office. Both the buyer and seller will be in the room, along with their respective agents and a closing attorney.

The closing attorney is responsible for making sure the property you are purchasing has no active liens. If there are any liens, the attorney will make sure they are paid off at the closing along with any other financial obligation the seller has made associated with the property and its sale. When you are financing your purchase with the help of a lender, the attorney will legally represent them. If you are paying cash for a property, the attorney will represent you, the buyer.

Buyer Closing Checklist

PICKING CLOSING TIME

Depending on the closing attorney, your agent will be able to request a closing time between today and a week before the closing date. Your agent will work hard to schedule a closing time as soon as possible. If you prefer a time of day, please notify us. While we will do our best to schedule your preferred closing time, we will also have to take into consideration the seller schedule and the closing attorney’s availability. Closings are held on non-holiday weekdays from 9 am to 4 pm. Most closings take about an hour, however some can take a few hours.

CLOSING DOCUMENTS

During the closing, the attorney will go over the settlement statement with the seller and the buyer. Typically more time is spent going over the settlement statement than any other document because this form breaks down all the costs associated with purchasing the property. After both parties feel comfortable with the numbers on the settlement statement, the attorney will continue with the rest of the closing documents. If you are getting a loan to purchase the property, the majority of the documents presented to you to sign will be from your lender. The lender’s documents can be hundreds of pages long; unfortunately there isn’t enough time for you to read or skim each document before signing. In our experience, most attorneys will go over the highlights before you sign. If you would like to read over all the documents before signing, please notify your agent so they can schedule a separate time and date before closing for you to come into the attorney’s office and review all the lender and closing documents.

SETBACKS & DELAYS

While all parties involved in your closing will do their best to close on your new home on the agreed upon day, there still remains a chance that the closing date may be extended. The common reasons why contracts are unilaterally extended are: 1. The lender is unable to fund the loan on the closing date due to no fault of the buyer, 2. The closing attorney is unable to close the property date on the proposed date, 3. The seller is unable to provide a clear and marketable title on the property (with some exceptions), or 4. the buyer doesn’t receive the required closing disclosure and estimate required by federal law. If one of these four reasons happen, then the contract can be unilaterally extended up to eight days past the original closing date. Because this extension can happen at the last minute, it is important to be flexible and have a Plan B.

WHAT TO BRING TO CLOSING

At the closing, you should make sure all parties who are on the mortgage and on the title attend the closing. Each person who is attending should also bring:

A valid government-issued ID such as a driver's license or passport
The wire confirmation number from bank
Your bank’s wiring instructions (optional)
Personal checkbook (optional)
Black folder we handed you during the inspection.
Don't bring your own pen to closing, the attorney will give you a blue ink pen to sign all the documents.