Finding the perfect home – or buyer to sell your house to – is hard enough, but making the closing go smoothly is a process of its own.

Closing a deal is a lot easier than it sounds. Between getting the buyer and seller on the same page, making sure everyone is fully prepared, and handling all the closing steps in a timely manner, there’s a lot to take care of.

Buyers need to have their finances straightened out and a thorough understanding of the deal before signing anything. Sellers need to take care of their moving arrangements and final home bills before they can hand the keys over.

It doesn’t take much for all the steps to get a little confusing.

Thankfully, both sides can be fully prepared if they go into a purchase/sale with a real estate closing checklist in mind. Here’s everything a buyer and a seller needs to complete a real estate transaction with ease.

Real Estate Closing Checklist for Buyers

There aren’t many thrills that can compare to that of buying a house. Being a homeowner offers a sense of security, comfort, and success. It’s the start of a beautiful new chapter whether you’re buying your very first home or if you’ve already made some real estate purchases.

Every time you close a deal as a buyer, though, you need to have the following:

1. Get a Home Inspection and Appraisal

This is one of the first steps of the closing process. It should be done before any papers are written up and well ahead of the actual closing day.

Keep in mind that one doesn’t cancel out the other.

You need a home inspection to ensure that all the parts of the house are functioning as they should. This goes for everything from the appliances to the air conditioning, as well as the plumbing, electric, and even the pool pump.

A home appraisal, on the other hand, is what gives you an idea of how much the home is really worth. An appraisal offers insight as to whether you may be overpaying for a property or if you’re actually getting a better deal than you thought. It helps you understand the true value of a home, which is different from what recent closings in the area of market demands may tell you.

2. Clear and Claim the Title

Having the keys to the house doesn’t make you the official legal owner. Neither does paying the mortgage bill or putting the utilities under your name!

The only way to become the sole, legal owner of a property is to claim the title.

Buyers reserve the right to choose a title company and to purchase title insurance. You first have to clear the title of the names that were previously associated with the property. Then, you undergo a title search and a confirmation process that’s done with public land records.

This is one of the most important parts of the closing. As such, it’s best to consult your real estate agent and mortgage lender before moving forward.

3. Prepare the Necessary Financial Resources

Speaking of a mortgage lender, do you know if your loan application has been approved yet? Are you aware of how much money you can put down on a property and what your interest rate will be on monthly mortgage payments?

No matter how much you may love a property, you can’t move forward with a close if it doesn’t fit your financial needs. The best way to understand just how much this will cost you – and to get a good deal on it – is to figure out all your finances with a professional.

4. Have All Required Documents Ready to Go

As the closing day gets closer and closer, you need to be fully prepared. The last thing you want is to be running around town trying to print out documents or looking for documents you’ve misplaced.

Buyers always need to have these documents at a closing:

• government-issued ID with your current name
• proof of homeowners insurance
• official loan approval notice from your mortgage lender (the bank)
• additional paperwork that may be required to approve your mortgage loan
• home inspection reports
• a copy of the contract with the seller (to be signed at the closing)

Your current name on an ID needs to be an exact match to the name on the home title and all financial paperwork. It’s good to do a double-check if you’ve recently been married, divorced, or otherwise changed your name.

Also, keep in mind that an attorney should be present. This is in your best interest and in the seller’s, too. You can view here to see why a legal representative needs to have a seat at the table when closing on a real estate property.

5. Do One Last Walk-Through

Although it’s smart to show up prepared to close the deal, there’s one more thing you need to do before you sign the paperwork.

Take a lap around the house for a final walk-through. Notice if anything has changed since the time of inspection or from your previous visit to the property. Point out any red flags or things that are different from what is stated in the contract.

Talk these issues over with the seller and your respective real estate agents. You may need to push the closing back to get any variations straightened out in a way that benefits everyone. But, this can’t be done once you sign the papers!

Real Estate Closing Checklist for Sellers

What if you’re not buying a property, but rather selling it to someone? How can you ensure the closing goes as expected and that you’ve done your due diligence on your end?

The best thing to do is establish a good, healthy relationship with the buyer from the start. You want to be approachable and honest throughout the selling process.

Once it’s time for the real estate closing, make sure you follow these steps:

1. Gather All Closing Documents

The closing documents that sellers need to have prepared can be broken up into three groups. They are the “official closing documents”, “proof of repairs”, and “documentation of warranties.”

Your official closing documents include the closing statement, the seller disclosure, and the purchase contract. If you paid off the property in full when you purchased it, you need to bring the deed to the house as well.

The proof of repairs group refers to any home renovations that needed to be done before the closing date. These are usually things that an inspector notices when looking over the house, which the buyer and seller then agree on who will repair. Providing documented proof of repairs you’ve done covers all your bases.

Lastly, warranties should be given to the buyer when the need for future repairs occurs. Having these documents makes it easier for them to understand what they have a right to under a warranty when repairing or replacing something, and what they need to cover themselves.

2. Cancel Utilities – and Save Final Receipts

The next thing you should have prepared before the closing date is all your final bills. Pay off all your utilities – water, electric, internet/voice/cable, gas – in full. Keep the receipts and make a copy of them.

You should hold onto the originals for your records and give the copy to the buyer as proof that they’re receiving the home with no bills attached to it. More so, it’s good to cancel utility services altogether so they buyer can determine when service should begin in their name.

3. Cancel Home Insurance

No matter if you’re moving down the road or out of state, you need to cancel your home insurance. Home insurance only applies to the property you’ve purchased it under.

You can’t transfer it from one address to another. You have to cancel one home insurance account and open a new one when you sell an old property and purchase a new one.

4. Do Address Change Notifications

As you’re looking for a new home insurance policy, it’s good to take care of all your address change notifications, too.

Start with the post office, then handle your change of address with your bank(s) and your employer. It’s smart to notify any miscellaneous services you subscribe to as well – like your gym and any monthly shipments you pay for.

5. Do Some Simple Courtesies for the Buyer

These last steps aren’t required during a real estate closing process, but they are thoughtful for you to do. They’re simple steps that you can easily take care of which help make move-in a breeze for the buyer.

First is to gather all the remotes and controls for the house and put them in one place. These are for things like the garage door, ceiling fans, electric fireplaces, and so on. Next, make a list of all the codes (for gates, appliances, etc) your new homeowner will need; label each one and write the codes out clearly.

Then, of course, hand them over all the keys!

Additional Closing Tips for Buyers and Sellers

The better you prepare your real estate closing checklist, the more enjoyable the whole buying/selling process will be. The lists above are something you should always refer back to no matter which side of a real estate transaction you’re on.

But, they’re not the only things to be aware of when handling such a big task!

For more real estate tips and tricks to ensure everything goes well, click here.