When it comes to selling a home, the process can often feel overwhelming. However, having a closing checklist for sellers in place can help keep everything on track. From gathering necessary documents to coordinating with your agent, lender, and buyer, following a comprehensive closing checklist ensures a smoother and less stressful experience.
Whether you are selling a property in Cedar Falls, IA, Morgantown, WV, or Flagstaff, AZ, this guide from Redfin will walk you through the essential steps of a closing checklist for sellers and explain why each step is crucial for a successful and seamless sale.
Pre-closing preparations
One of the best ways to ensure a smooth closing day is by preparing well in advance. Reviewing agreements, addressing inspection findings, scheduling repairs, and gathering necessary documents are all key steps to laying a solid foundation for a successful closing.
Review the purchase agreement
Carefully review the purchase agreement to confirm that all details, including terms, contingencies, closing date, and included items, are accurate and clearly understood by all parties involved.
Address inspection findings
Promptly address any issues identified during the home inspection by completing repairs, offering credits, or negotiating the sale price. Proactively handling inspection findings helps keep the transaction on track.
Schedule repairs and maintenance
Ensure that all required repairs and maintenance tasks are completed in advance to present your home in its best possible condition to the buyer.
Gather necessary documents
Collect essential documents ahead of time to avoid last-minute stress. This may include the deed, recent title report, mortgage payoff statement, and warranties for appliances, systems, or recent renovations.
Notify utility providers
Coordinate with your utility providers regarding your move-out date to ensure a smooth transition. Close or transfer accounts to avoid any billing issues post-sale and to ensure uninterrupted service for the new homeowner.
Coordinate with your lender
If you have a mortgage, reach out to your lender in advance to request a payoff statement. This statement will outline the exact amount required to close your loan, including any prepayment penalties that may apply.
Final walkthrough preparation
Preparing for the final walkthrough is crucial to ensure that the property meets the buyer’s expectations and keeps the sale on track. Follow this checklist to approach closing day with confidence.
- Ensure all agreed-upon repairs are completed with proof of work documented through receipts.
- Thoroughly clean the property to make it move-in ready.
- Remove all personal belongings and trash from the home immediately.
- Leave behind any items included in the sale, such as appliances, fixtures, or outdoor equipment.
- Provide manuals and warranties for appliances, systems, or recent renovations.
- Double-check that any agreed-upon upgrades or improvements are completed.
- Share access details such as alarm codes and smart home system instructions with the new buyers.
- Ensure utilities are functional for the buyer to test during the walkthrough.
- Secure the property by properly locking all doors and windows.
Closing day essentials
Closing day marks the final step in the selling process. Make sure you have everything you need to complete the deal with this checklist for sellers.
- Bring required identification, such as a valid government-issued ID, to verify your identity on closing day. Confirm with your real estate agent if multiple forms of ID are necessary.
- Review the closing disclosure to ensure that all details, including the sale price, taxes, concessions, and closing costs, meet your expectations.
- Sign the deed and other closing documents after carefully reviewing them. These documents may include affidavits, settlement statements, and property condition disclosures.
- Deliver access items such as keys, garage door openers, gate passes, and remotes to the new homeowners.
- Confirm the transfer of funds with your lender or title company, and keep detailed records of the transaction.
- Ensure the deed is recorded with the county to officially transfer ownership of the property.
>> Read: Closing Documents for Sellers
Seller expenses at closing
In addition to paying off any remaining mortgage balance, sellers can expect to incur closing costs equivalent to about 5–10% of the home’s sale price. Common expenses include real estate commissions, taxes, utilities, insurance, escrow, title, attorney fees, warranty payments, and HOA dues if applicable.
After deducting agent commissions and other expenses, sellers will receive the remaining proceeds from the sale at closing. If the proceeds are insufficient to cover all costs, sellers may need to provide a check, so it’s essential to be prepared with a cashier’s check if necessary.
Post-closing actions
Following the closing day, sellers must take several steps to wrap up the selling process effectively.
- Cancel homeowners insurance once the sale is completed and recorded.
- Keep copies of closing documents, such as the settlement statement and deed, for tax and record-keeping purposes.
- Notify change of address with the USPS, banks, and relevant institutions.
- Transfer or close accounts for local utilities, subscriptions, or services linked to the property.
- Confirm final financials to ensure all mortgage, property taxes, and other obligations are settled correctly.
FAQs: Closing checklist for sellers
1. Do I need to attend the closing in person, or can I sign remotely?
You have the option to sign remotely and are not required to attend the closing in person. Consult your agent or closing attorney to explore your signing options.
>> Read: Does the Seller Have to be Present at Closing?
2. Who pays closing costs when selling a home?
While closing costs are typically covered by the buyer, sellers may choose to negotiate and cover some or all of these expenses. However, there are implications to consider, such as reducing net proceeds and potentially setting a precedent for further concessions.
3. How long does the closing process usually take?
The entire closing process may take several business days to complete, but the closing day itself often lasts less than an hour.
4. What happens if the buyer’s financing falls through before closing?
If the buyer’s financing falls through, the deal may be delayed or canceled based on the contract terms. In such cases, the buyer may forfeit their earnest money deposit if they fail to meet financing contingencies.
5. Will I owe taxes on the money I make from selling my home?
You may be subject to capital gains tax if your home sale profit exceeds IRS limits, but many homeowners qualify for exemptions. Keeping track of selling expenses can help reduce your taxable gain, including agent commissions, repairs, and closing costs.