Understanding the Home Closing Process: What Sellers Should Know

Navigating the world of homeownership can be quite overwhelming, especially when it comes to selling your cherished property. Fear not, because, at Bluewest Properties, our dedicated team of realtors is here to alleviate those worries and guide you every step of the way.

In this blog, we’ll focus on sellers and explain the important aspects of the home closing process, ensuring your home-selling experience is positive and rewarding.

What Exactly is Home Closing?

Well, for one thing, it’s a process, and during this process, your realtor will ensure everything is taken care of for a smooth transfer of ownership. Closing on a home is when the proper documentation and money are transferred from seller to buyer to mark the transfer of ownership. This momentous occasion occurs on the closing date.

What Are the Steps of a Home Closing as a Seller?

As a seller, the home closing process involves several steps that need to be completed to finalize the sale of your property. Here's an overview of the typical steps involved in a home closing from the seller's perspective:

1. Accept the Purchase Agreement: Once you have accepted an offer from a buyer and agreed upon the terms of the sale, you'll have a purchase agreement in place. This document outlines the specifics of the sale, including the purchase price, any contingencies, and the closing date.
2. Cooperate with the Buyer's Inspection: The buyer will likely conduct a home inspection to identify any issues with the property. You may need to make the property accessible for the inspection and provide any relevant information about the home's systems, maintenance, and history.
3. Negotiate Repair Requests (if any): If the buyer's inspection reveals issues, they may request repairs or concessions based on the findings. You'll need to negotiate and come to an agreement on how to address these concerns. This could involve making repairs, offering a credit, or adjusting the sale price.
4. Prepare for the Closing: As the closing date approaches, you'll need to gather all the necessary documents and information that will be required during the closing process. This can include property-related documents, tax records, and any other paperwork related to the sale.
5. Title Search and Title Insurance: The title company will conduct a title search to ensure that there are no liens, disputes, or legal issues associated with the property's ownership. Title insurance will also be arranged to protect the buyer and lender from any unforeseen title problems.
6. Sign Documents: On the closing day, you'll need to sign various documents related to the sale, including the deed, the closing statement, and any other legal paperwork. These documents legally transfer ownership of the property to the buyer.
7. Transfer Possession and Keys: After the closing documents are signed, you'll transfer possession of the property to the buyer. This may involve handing over the keys, garage door openers, and any other relevant access devices.
8. Receive Payment: Once all the documents are signed and all funds are verified, you'll receive the proceeds from the sale. These funds may be transferred electronically or in the form of a check.
9. Close the Transaction: The title company will record the new deed with the appropriate local authority to officially transfer ownership to the buyer. The title company will also disburse funds to pay off any outstanding mortgages or liens on the property.
10. Notify Utilities and Agencies: Make sure to inform utility companies, homeowners' associations, and any other relevant parties about the change in ownership. This ensures that services are transferred appropriately.

What Documents Are Required at a Home Closing?

Here are some of the documents that will be of the utmost importance on closing day for you as the seller:

• The Deed: A deed is a legal document that transfers ownership of a property (such as a home, land, or real estate) from one party to another. It serves as evidence of the transfer of title or ownership rights from the seller (grantor) to the buyer (grantee). The deed includes essential information about the property and the terms of the transfer. 

• Certificate Of Title: This is a legal document used in real estate transactions that provides information about the property's ownership and any existing liens or encumbrances. Attorneys and title companies use the certificate of title to ensure that the property is free of any legal claims or disputes before the sale is finalized. This document is generated and maintained by the local county or jurisdiction's land records office.

• Mortgage Loan Payoff Agreement: A mortgage loan payoff agreement guarantees that the seller will pay off the outstanding balance on their mortgage in full so that the leftover amount doesn’t interfere with the sale. A disclaimer, this document is unnecessary if the seller has already paid off the mortgage.

• Bill Of Sale For Personal Property: Sellers may include personal items in the home sale, and if so, they must sign a bill of sale for that specific personal property. Since not every sale includes transferring personal property, most closing documents will not automatically include such a document. This bill of sale is done separately and is between the buyer and the seller.

How Long Does the Home Closing Process Take? 

The length of a home closing process can depend on various factors (i.e., home inspection, walkthrough, negotiations, etc.), but an average of 45 to 55 days can be expected for the closing process. If it’s delayed slightly, don’t fret. It’s best that it takes a bit longer rather than transferring ownership only to realize something went wrong in the hastening of the process. At BlueWest Properties, we close most deals in 30 days—cash closing can be weeks. 

Who Are the People Involved in the Closing Process?

The closing process is intricate, and an array of people will be present on closing day, such as the following:

• The closing agent, who works for either the lender or the title company
• Attorneys
• The title company representative, whose job is to provide written evidence of the ownership of the property
• You, the home seller or your representative
• Your real estate agent
• The buyer, or the buyer’s representative
• The buyer’s real estate agent
• The buyer’s lender

How Much Are Closing Costs?

Every home buying and selling process is different. Closing costs will vary and working with the title company will be the best way to understand them. Be sure to ask for a preliminary settlement statement to receive valuable information. 

Bluewest Properties Wants To Help You Sell Your Home

At BlueWest Properties, we know the closing process can be stressful for everyone involved, especially for you, the seller. But you’re not in it alone. List your home with BlueWest Properties, and we’ll be with you every step of the home closing process.

Our team is committed to you and making your life as a homeowner as seamless and worry-free as possible.  Contact us today for any questions. We’re here for you always, and we’d be honored to be right alongside you in your home-owning journey.