We are almost there. This moment, strangely perhaps, reminds me of racetrack announcers who holler “down the stretch they come!” when describing the sight of thoroughbreds making the final turn and heading for the finish line in an important race such as the Kentucky Derby. You can feel the goose bumps rising on your skin as those words are uttered then….and now as you inch a day or two away from owning your dream Seattle home.
You are clear to close and have worked with escrow to schedule your signing day. You organized the down payment with the bank and are nearly ready to pack that final box to move out. Now what?
You should now work with your inspector and real estate broker to schedule the final walk-through of the new home. This usually occurs a day or two before you visit the escrow company offices with your final payment (or wired funds to escrow) and complete the signing.
You want to make sure the walk-through gives the seller enough time to allow for any last-minute adjustments based on what you find in the home. The process can take anywhere from 20-60 minutes, depending on the size of the home, the number of issues to be checked and whether your inspector is returning to ensure there are no new issues.
Both the seller and buyer’s agents will likely be present – but typically not the seller – to review the property. This will allow you and your representative to discuss any concerns or questions with the seller’s agent in real time.
Come to this walk-through with a checklist:
- Verify that all repairs related to the home inspection report have been made; be sure to obtain copies of paid receipts and any related warranties;
- Confirm all appliances remaining in the home are working;
- Check to make sure the sellers didn’t damage anything since you last visited;
- Look to make sure all items included in the sales price (such as blinds, curtains, shrubberies) are still there and in a similar condition; this includes anything that was attached to the wall previously, such as shelves, light fixtures and TV mounts unless otherwise noted in the purchase and sale agreement;
- Find out where screens and storm windows (if applicable) are in place or stored;
- Test the intercom, doorbell, alarm, heating, air conditioning (if applicable) and hot water to make sure they all work;
- Is the property in “broom clean” condition, in which you only need a broom to clear out remaining debris?
- Ask about trash and recycling procedures and location, as well as parking and storage units (if applicable);
- Test the garage-door opener (if applicable) and any other remote-controlled items (shades, ceiling fans) and make sure you will receive them at (or before) signing;
- Ask to see all instruction manuals and warranties for appliances and fixtures;
- And ensure all personal items of the seller and debris have been removed, including food in the fridge.
The walk-through is NOT:
- A time to have friends/family visit the property;
- When contractors or utility installers attend (you don’t own the property quite yet);
- The time to pick up keys; that will come after the deal is consummated;
- A chance to bring your personal possessions or moving boxes into the property.
What happens if you find damage at the walk-through or the seller didn’t do repairs that he/she was legally obligated to complete? You have a few options:
- Delay closing a few days or even (heaven forbid!) a few weeks to give the seller time to repair the damaged item(s);
- Ask the seller to put money into escrow to cover the repairs – typically 1.5x the cost of the vendor’s estimate – so you can still close on schedule, and seller would be reimbursed later by escrow if any over payment;
- Have the seller pay the vendor for the repairs in advance, show proof of pre-payment to escrow, which will debit the seller and credit the buyer in the closing statement for the amount (with the buyer taking responsibility for having the repairs completed after moving in).
If the seller is unwilling to do any of the above, sadly you may have to cancel the contract and walk away from the deal with your earnest money returned. But first, always work with your agent to develop a Plan B and Plan C to try and seek compromise before considering the worst option.
Also, do not raise any issue with the home at closing with your escrow representative. Repairs or missing property are not escrow’s problem and will likely get you in hot water with many parties in the process.
Please let me know if you have any questions regarding the final walk-through.
We’re almost there!
(A tip of the hat to Shay Hata, a Chicago-area real estate agent who shared these common-sense tips. When I met Shay in 2018, she inspired me to produce my home-buyer blog series. Thanks, Shay!)