Real Estate Closing Checklist for Buyers & Sellers

Download the Closing Checklist for Buyers

1. Name the Players in the Transaction

Create a spreadsheet that outlines everyone involved in the transaction and includes their contact information should either side of the transaction need to be reached throughout the process. This spreadsheet should be shared with the buyer’s and seller’s agents to ensure that both parties are kept in the loop and are aware of all players in the game.

The real estate buyer’s closing checklist should list the following people:

• Buyer(s): Client(s) who are purchasing the home
• Seller(s): Client(s) who are selling the home
• Buyer’s agent: Representation for the buyer(s)
• Seller’s agent: Representation for the seller(s)
• Transaction coordinator (for buyer and seller’s agent, if applicable): Individual working for each agent’s firm who helps coordinate the transaction timeline and documentation
• Lender/Loan officer: Bank institution that is financing the sale for the buyer
• Title company: Verifies that the title to the property being purchased is legitimately given to the buyer
• Escrow company/Escrow officer: Holds and manages the funds during a real estate transaction until closing
• Attorney (if applicable for state): Real estate agents never give legal advice, so clients should always consult an attorney for legal questions
• Accountant: Similar to attorneys, agents should never give financial advice and clients should consult an accountant for financial related information
• Inspection company(ies)/Inspectors: Always avoid liability―have your buyer hire professional inspectors, e.g., home inspectors, termite inspectors, radon inspectors, pool inspectors, roof inspectors, chimney inspectors, and so on
• Insurance company/Agent: Homeowner’s insurance is crucial and is required by the lender; even if you purchase a home with cash, it is good policy to secure insurance on the home

2. Create a Transaction Timeline

At the very beginning of escrow, either you or a transaction coordinator will make sure that all parties have a timeline listing important dates and deadlines required for closing. The timeline should include all the steps on this real estate closing checklist as well as important benchmarks that must be adhered to so that the deal goes smoothly.

Closing requirements include appraisals, inspections, and loan contingencies. Furthermore, there are specific time periods for each of these contingencies to be met and removed.

• Appraisal contingency
• Inspection contingency
• Loan contingency

Appraisal contingency: An appraiser is hired by a third party (usually a mortgage lender) to evaluate the market value of the home. If the appraised value is less than the sale price, the buyer can refuse the deal without forfeiting their earnest money.

Inspection contingency: This gives buyers the right to have the home professionally inspected before moving forward with the purchase. If there’s a significant issue identified in the inspection, the buyer can request to have it fixed by the seller or back out of the sale.

Loan (or finance) contingency: A buyer has a certain amount of time to secure a loan if they decide to finance the purchase. This contingency allows the buyer to back out of the deal if their mortgage falls through and prevents them from completing the purchase.

Timelines are crucial and every effort should be made to meet them. Of course, “life happens” and we need to adapt and adjust. When something unexpected comes up, you must act proactively to get back on track as soon as possible. Make sure that all parties have reviewed the transaction timeline and are in agreement so they can respect the contract and deadlines for the transition of ownership can be met in a timely manner.

3. Lender Requirements & Appraisal

Before writing an offer on a home, most buyers meet with a lender to get pre-approved for a loan. A lender will require specific documents to qualify your buyer, including items like income-related documents, pay stubs, tax returns, investments, bank statements, and credit reports. During the transaction, the lender will require updated income documents and bank statements from your buyer, and they will also need the contact information for the buyer’s employer to verify job status.

At the beginning of the transaction, the lender will also schedule an appraisal to make sure the value of the property is sufficient to justify the amount of money being lent to the buyer. In a competitive market where sellers are often receiving multiple offers, sometimes the buyer will even opt to remove the appraisal contingency. If the appraised value is too far below the amount of the sale price, the buyer and the seller may need to revisit the original terms of the contract.

In this scenario, the buyer could possibly be required to pay more for the home than what the appraisal determined the home was worth. The buyer who chooses to take this risk should have additional funds that are documented in bank statements to cover the gap between what the lender is willing to lend vs the amount of money needed to finalize the purchase.

4. Ordering Inspections

Per the purchase contract, the buyer can complete any and all inspections to satisfy any concerns they may have. To be competitive, a buyer may shorten their time frames to complete inspections more quickly.

During this time, a professional home inspector should be hired to examine the home. They may examine any number of items, including the home’s structure, exterior and interior, major appliances, heating, ventilation and air conditioning (HVAC), outbuildings or pools, the existence of harmful chemicals or gasses, and check for pests like termites or rodents, which can cause damage that can otherwise remain unseen.

The inspector will take pictures and write up a detailed report of the property. Once the inspection report comes back, the buyer and their agent should review the findings as quickly as possible. If the buyer wants to request repairs, they should do so in the time frame outlined in the contract to negotiate terms with the seller. Depending on the seriousness or severity of items needing to be repaired, a follow-up inspection may be required prior to closing.

Communication is extremely important during the inspection time frame. Once damage or need for repairs are found by the inspectors, you must make sure to call the seller’s agent to inform them of items noted. Set the expectations and make sure that the listing agent has the opportunity to speak with the seller prior to getting a repair request.

5. Closing Documents

In California, agents use title and escrow companies, while in other states, like New Jersey, they may use attorneys to handle real estate transactions. The title company (or attorney) and the lender will work hand-in-hand to balance the figures and the terms of your buyer’s loan. Once this is completed, the lender will coordinate your buyer’s loan documents to be sent to title to be prepared and signed.

The lender will also inform your buyer of the total amount of funds they need to wire to the title company. Once the buyer’s funds and the lender’s funds have been wired to the title company’s account, the process of transferring ownership of the home from the seller to your buyer is one step closer.

During this process, it is important to check in with your buyer and guide them on the final details of signing their loan documents. Your buyer will be asked to provide a valid form of identification at the time of signing, which may need to be a government-issued identification such as a driver’s license or a passport, since closing documents will be notarized.

6. Moving Checklist

To provide additional value as a real estate agent, give your buyer a moving checklist. This checklist should include phone numbers for services the buyer will need to set up at their new home. In particular, a buyer moving in from out of the area will be especially appreciative of your guidance in moving to the new area. Moving checklist items could include:

• Water
• Garbage
• Electricity
• Gas
• Cable and internet
• Movers
• Painters
• Locksmith
• Landscapers

As the buyer’s agent, you are not responsible for setting up these services for them, but by providing these resources, you are supplying your buyer with an outstanding beginning-to-end transaction that will have your clients singing your praises to others who can, in turn, become client referrals in the future.

7. Final Walk-through

When you get to the final walk-through, you’re in the home stretch when it comes to giving your buyer the keys to their new home. Usually, you and your buyer will do a final walk-through three to five days prior to close of escrow to make sure the home looks like it did when it was first purchased and that anything the seller agreed to do as a result of inspection findings or as outlined in buying contingencies has been completed.

Guarantee that the house is ready for your clients by testing all appliances, plumbing, heating and cooling, and outlets. Run a quick cycle on the dishwasher and laundry machines. Preheat the oven, flush the toilets, run the hot and cold water at each sink, open each cabinet, test the fire alarms, turn on the heat and air conditioning, and so on. Your main role as the representative of the buyer is to guarantee that the home they are purchasing is up to par with the money they are paying, so don’t leave any stone unturned.

Make sure to do your walk-through before the loan funding. If something is found during the walk-through, it gives you time to coordinate repairs and resolution prior to closing the home and title transfer.

8. Closing & Presenting Keys

Finally, closing day has arrived. Typically, the closing will take place at the attorney, title company, or lender’s office, where your buyer will be required to sign a slew of documents to complete the sale.

Closing documents vary based on state, but most often include:

• Promissory note: A promise from the buyer to the lender to repay the money borrowed
• Mortgage: Outlines the terms of the money a buyer is borrowing from the bank
• “Truth in lending” statement: Outlines the total amount of the buyer’s loan over its lifetime (interest rates and annual percentage rate)
• Title or deed: Transfers ownership from the seller to the buyer
• Monthly payment letter: A breakdown of the buyer’s monthly payments (mortgage, principal, interest, taxes, and so on)
• Proof of homeowners insurance: If the buyer has financing, they are required to provide proof of insurance to the mortgage lender for the duration of the loan (even if a buyer is paying with all cash, they should still have homeowners insurance)
• Bill of sale: The bill of sale documents the personal property of the home that will be transferred to the new owners (appliances, furniture, light fixtures, and so forth)
• Completed loan application: The buyer will receive a new printout of the application they submitted for the loan, and must verify the information for accuracy

As the buyer’s agent, you should already have spoken to your client by now about any and all closing costs they need to pay to complete the transaction so there are no surprises. After your client has signed the mountain of paperwork, they will be able to get the keys to their new home.

This is an amazing time to celebrate with your buyer and solidify that you will be their real estate agent for life. Whether the transaction went smoothly or you went through the wringer to get this home, by maintaining deadlines, professionalism, and preparing your buyer throughout the process, you can guarantee a positive experience.

You should consider giving your clients a gift to congratulate them on their purchase. This will leave a lasting impression, making them even more likely to sing your praises to all and refer friends and family to you who want to purchase a home. This gift could be a personal thank-you note accompanied by a welcome home basket that includes cleaning supplies and return address labels, a plant, custom picture, or scrapbook of your homebuying process together.

If you’re having trouble deciding on which closing gift to give your buyers, use a service like EvaBot to send a personalized gift from $20 to $1,000 right to your client’s doorstep. Eva will chat with your buyer to evaluate their tastes before sending them a custom gift with your personal branding on it. Check out their website to learn more:

Visit EvaBot

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Download the Closing Checklist for Sellers

1. Name the Players in the Transaction

Create a spreadsheet that outlines everyone involved in the transaction and includes their contact information should either side of the transaction need to be reached throughout the process. This spreadsheet should be shared with the buyer’s and seller’s agents to ensure that both parties are kept in the loop and are aware of all players in the game.

The real estate seller’s closing checklist should list the following people:

• Seller(s): Client(s) who are selling the home
• Buyer(s): Client(s) who are purchasing the home
• Seller’s agent: Representation for the seller(s)
• Buyer’s agent: Representation for the buyer(s)
• Transaction coordinator (for buyer and seller’s agent, if applicable): Individual working for each agent’s firm that helps coordinate the transaction timeline and documentation
• Lender/Loan officer: Bank institution that is financing the sale for the buyer
• Title company: Verifies that the title to the property being purchased is legitimately given to the buyer
• Escrow company/Escrow officer: Holds and manages the funds during a real estate transaction until closing
• Attorney (if applicable for state): Real estate agents never give legal advice, so clients should always consult an attorney for legal questions
• Accountant: Similar to attorneys, agents should never give financial advice and clients should consult an accountant for financial related information
• Inspection company(ies)/Inspectors: Always avoid liability―have your buyer hire professional inspectors, e.g., home inspectors, termite inspectors, radon inspectors, pool inspectors, roof inspectors, chimney inspectors, and so on
• Insurance company/Agent: Homeowner’s insurance is crucial and is required by the lender—even if you purchase a home with cash it is good policy to secure insurance on the home

2. Create a Transaction Timeline

Just like with the buyer, at the very beginning of an escrow, you or your transaction coordinator makes sure that all parties have a timeline of important dates and deadlines. These benchmarks must be adhered to so that the deal goes smoothly.

Make sure that all parties have reviewed the transaction timeline and are in agreement. Keep in mind that your seller may have purchased another home and needs to be even more mindful of the timeline because of that. When something disrupts the process of multiple parties moving because of multiple homebuying and selling processes occurring simultaneously, a domino effect occurs.

We are always hopeful that all parties will proceed positively toward a smooth closing, but if one of the steps gets interrupted, it can affect the entire deal. Communicating transaction timeline details and having a backup plan for your seller is a way to ensure that your closing is not delayed.

3. Reviewing Inspections & Repair Requests

When you first brought the offer to your seller, you negotiated the terms of the contract. If a buyer opts to complete inspections and there are findings, you could find yourself negotiating terms once again. It is always important to set the seller’s expectations upfront when you take the listing.

If the buyer’s agent sends you a repair request or asks for a credit toward repairs following an inspection, it should not be a shock or surprise to your seller. You also should have been proactive when taking the listing to identify and estimate the potential cost of condition, safety, health, or code violation repairs that could be requested.

If repairs are needed and the seller will be completing it themselves, they should be prepared to hire a professional to get the work done as soon as possible so there will be no delay going to the closing table. As an agent, you can help facilitate this by working with your client to schedule a consultation and time frame for the work to be completed and for the completion of any follow-up inspections (if required).

4. Closing Documents

During the transaction, the title company or attorney will be sending documents, most likely via email, to your seller. It’s part of your job to make sure your seller completes these documents on time. These items could include a statement of identity (checking any liens against the seller) or a payoff request (a document sent to all lien holders to clear title).

Once the buyer’s closing documents are ready to be signed, arrange a signing appointment for your seller. Make sure to have the title company send you the seller’s estimate and review it carefully before sending it to your seller. It is always suggested that you have this information sent prior to signing closing documents so you have a chance to make corrections and address any additional concerns.

Inform your seller they need to provide valid identification at the time of signing, such as a current driver’s license or passport, since the documents will be notarized. Also, ask your seller to have the account number or wire instructions available for where they would like their proceeds deposited. After their home closes and ownership is transferred, electronically wired funds will be available to the seller sooner than if they have to wait for a check to clear.

5. Moving Checklist

To provide additional value, give your seller a moving checklist. This checklist should include phone numbers for services the seller will need to cancel on their home, such as:

• Water
• Garbage
• Electricity
• Gas
• Cable and internet
• Insurance
• Landscapers
• Pest control

With the closing timeline in hand, sellers can schedule the turn-off or transfer of ownership of services at their residence after the buyer’s final walk-through. It is important to note that if services are turned off before the walk-through, the buyers will not be able to confirm certain items are working, like electricity, water, or gas.

Your seller should also prepare and contact a moving company to remove their belongings before closing to make room for the buyers coming in. As their agent, you are not responsible for setting up these services for them, but by providing these resources, you are supplying them with a beginning-to-end transaction that will have clients singing your praises to others, who in turn will become client referrals in the future.

6. Buyer’s Final Walk-through

Although the seller is not usually present at the final walk-through, as the representative for the seller, you should be there to ensure the process is going smoothly. Inform your seller that the buyer and their agent will need to walk the property three to five days before closing.

The buyer will be checking to make sure the home looks like it did when they purchased it and that any promised repairs have been completed. The buyer is also probably deciding whether to have the house or flooring professionally cleaned, or to repaint, recarpet, or make other changes before moving in.

During the walk-through, it is always a nice gesture to have some information available to the buyer on the nuances of the home. For instance, the seller may also want to leave a list of vendors that can continue to service the property, such as landscapers and pool services.

7. Closing & Presenting Keys

Your seller has reached the end of the process and the home is being closed. Ownership has transferred and the buyer is going to be taking possession. Your seller should make sure that the home is clean and ready for the new buyers. The keys, garage door remote controls, and mail key should be placed in a kitchen drawer or left on the kitchen counter. Your seller should also leave instruction manuals for equipment, sprinkler or irrigation systems, and appliances on the counter.

The title company or attorney will present the final seller’s estimate and/or deed so that the seller, if requested, can close their utilities. As the seller’s agent, you should have spoken to your client about any closing costs that need to be paid after completing the transaction so there are no surprises.

Remember to remove the property’s for-sale listing from any sites where you’re advertising, such as Zillow, Realtor.com, the local MLS, Craigslist, and so on. You should also update social media accounts like Facebook and Instagram to reflect that the property has been sold.

Most importantly, this is an amazing time to celebrate with your seller and solidify that you will be their real estate agent for life. Whether the transaction went smoothly or you went through the wringer to get rid of this home, by maintaining deadlines, professionalism, and preparing your seller throughout the process, you can guarantee a positive experience.

You should consider giving your clients a gift to congratulate them on selling their home. This will leave a lasting impression, making it even more likely they will sing your praises, and refer friends and family to you who want to sell a home. This can be a personal thank-you note accompanied by a congratulations basket that includes a plant, custom picture, or scrapbook of your selling process together.

If you’re having trouble deciding on your closing gift, use a service like EvaBot to send a personalized gift from $20 to $1,000 right to your client’s doorstep. Eva will chat with your seller to evaluate their tastes before sending them a custom gift with your personal branding on it. Check out their website to learn more:

Visit EvaBot

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