Now that we have an accepted home purchase contract, there are several important details to attend to regarding the closing. I have outlined an overview with instructions and explanations of the process to help clarify what will be taking place in the next few weeks. Keep these notes handy in case you have any questions.
Inspections…
With a contract to buy a house, the purchaser has up to 10 days to have a professional home inspection conducted at their expense. The inspector will go through the house with a fine-toothed comb, checking items such as; dishwasher, garbage disposal, water pressure, electrical outlets, air-conditioner, attic, roof, etc. The inspector will then prepare a written report for the buyer and their realtor to review. Within 5 days, the realtor will return a list of repair items to the seller, (not to include anything cosmetic). You may choose to do some or all of the repairs when you sell a house depending on what they are and your motivation to sell a house. Note: the cost of repairs cannot exceed the negotiated amount previously agreed to in the home purchase contract. I have several repairmen highly recommended in Boulder County if you need any references.
Appraisal…
This is the moment of truth. When they buy a house, the Buyer’s lender will select a local appraiser to conduct a formal appraisal. They will check the condition of the house and the neighborhood house for sale and recent sales to determine a value. If it’s an FHA loan, there are certain criteria that the house must meet (we will explain the details of an FHA sale). The appraiser will schedule an appointment as soon as they are ready to inspect the property. Be careful not to discuss any comments regarding your home. The appraiser needs to form an un-biased opinion. On rare occasions, if the house does not appraise for at least the sales price, we will need to discuss adjustments and possibly re-negotiate with the Buyer. Don’t worry…this does not happen often.
Survey…
Before final settlement of the home purchase, the closing agent (which in Boulder County Real Estate dealings is usually a title company), may want to order a survey or an ILC (Improvement Location Certification) of your home for sale. Many times, these documents already exist and only need to be updated so this part of a home purchase is generally painless. If a new survey is required or necessary, you won’t even need to be there and the survey company will give the documents to the closing agent who will in turn forward them to the buyer at closing.
The Closing or Settlement Agent…
When you sell a house, at some point the closing agent will be contacting you regarding your existing mortgage (if you have one) and the payoff balance. They will need the name of any first or second mortgage company, your loan number and the contact information for the lender. They will call the lender and request payoff information for settlement. The closing agent may also need some other information for the home purchase to move forward. Some things to keep handy are: the status of your homestead; your social security number; Homeowner’s Association Contact and phone numbers, etc. To efficiently sell a house, these things are necessary for the home purchase closing to take place.
The HUD Statement
You will hear this term more than once by the time you hand over the keys to the new buyer. This is the standard settlement statement used by HUD (Housing and Urban Development) to calculate the closing costs for the home purchase. Everything is tabulated on this form. Property taxes are prorated, exact payoffs are recorded, repair bills are itemized, all other fees are calculated, etc. Your main concern is the bottom line and your NET. The closing agent will prepare this document and send it to the mortgage company for final approval. This is one of the last steps that gets processed when you sell a house. I assist in every way possible to have the HUD statement a day or two in advance so we can review it with you to double-check for anything that was missed or entered incorrectly.
Pack it up!
When you buy a house, it is usually a good idea for the homebuyer to do a final walk-through a couple of days before closing. A professional Realtor will always suggest this to ensure that the seller has completed any repairs as agreed and to check the property to verify it is essentially the same condition as when they initiated the home purchase. Unless we have made some special arrangement for the new owners to delay occupancy you will need to have everything packed and vacated from the property on the day of closing. Leave the house cleaned and empty. Leave any important paper work like appliance manuals etc, garage door openers or security codes for the house in the kitchen drawers. Don’t forget to bring the keys for the new buyers.
Closing
We will be in constant contact regarding scheduling and I will give you directions to the closing office. In Boulder County Real Estate closings, the process usually takes about an hour. After you are finished, you no longer own the house but you will have a certified check in hand. Of course, if you are looking to buy a house or investment property, I will have been reviewing the MLS listings we will be ready to keep you moving forward in whatever direction you desire.
If you have any other questions regarding selling a house, buying a house or the closing process, please feel free to contact me anytime. If you have not done this before, the process to sell a house or a home purchase may seem a bit overwhelming, but it can actually be a lot of fun and is pretty exciting a every step. Just remember, I am here to make your Boulder County Real Estate transactions as easy and stress-free as possible.
Sincerely,
Anne Michelle Wand
BoulderCountyExpert.com
303-669-2304
P.S. Attention to detail is what distinguishes me in the Real Estate field and in Boulder County. Please mention my name to your family and friends when they are in need of Real Estate assistance and would like to talk to a professional realtor about making buying a house or selling a house fun and exciting.