Congratulations! Your home is under contract, and you’re one step closer to completing the sale. However, the journey isn’t over yet, and there are several critical mistakes to avoid to ensure a smooth closing process. Here are the top things to avoid doing once your home is under contract.
1. Neglecting the Home’s Condition
Stop Routine Maintenance
While it might be tempting to let things slide once you’re under contract, maintaining your home’s condition is crucial. Continue with routine maintenance and address any minor issues promptly to avoid problems during the final walkthrough.
Making Major Changes
Avoid making significant changes or improvements to the property without consulting your real estate agent. Buyers expect to receive the home in the same condition as when they made the offer, and unapproved changes could lead to disputes or even a canceled contract.
2. Ignoring Contingencies
Failing to Address Contingencies
Most real estate contracts include contingencies that must be satisfied before the sale can proceed. These might include home inspections, appraisals, or the buyer’s financing approval. Ensure you comply with all contingencies in a timely manner to avoid delays or potential contract termination.
Skipping Agreed-Upon Repairs
If the buyer’s inspection report highlighted issues and you agreed to make certain repairs, be diligent in completing these tasks. Neglecting agreed-upon repairs can lead to complications during the final walkthrough and might give the buyer grounds to back out.
3. Making Large Financial Changes
Avoid Taking on New Debt
Taking on new debt, such as opening a new credit card or financing a large purchase, can impact your financial stability. Lenders review your financial situation up until closing, and significant changes could jeopardize your ability to finalize the sale.
Do Not Change Jobs
If possible, avoid changing jobs or making career moves that could affect your income stability. Lenders prefer consistency, and any major changes could delay the closing process.
4. Being Unresponsive
Stay in Touch
Stay in regular contact with your real estate agent, attorney, and the buyer’s representatives. Promptly respond to any requests for information or documents to keep the process moving smoothly.
Avoid Delays
Respond to all inquiries and required actions quickly. Delays in providing information or completing tasks can push back the closing date and frustrate the buyer, potentially risking the sale.
5. Misunderstanding Closing Costs and Requirements
Not Preparing for Closing Costs
Ensure you understand and prepare for the closing costs you’ll be responsible for as the seller. These can include agent commissions, title insurance, and any prorated property taxes. Being financially prepared will prevent last-minute surprises.
Ignoring Documentation
Gather all necessary documents well in advance of the closing date. This includes any warranties, repair receipts, and manuals for appliances included in the sale. Having everything ready ensures a smooth and efficient closing process.
6. Disregarding Legal and Contractual Obligations
Skipping Legal Counsel
Even if your real estate agent is experienced, consulting with a real estate attorney can provide additional protection. They can help review the contract, ensure all legal requirements are met, and address any potential issues.
Violating Contract Terms
Ensure you adhere to all terms outlined in the contract. This includes not removing any fixtures or appliances that were part of the agreement and ensuring the property remains in agreed-upon condition.
7. Underestimating the Final Walkthrough
Neglecting Final Preparations
The final walkthrough is the buyer’s last chance to ensure the property is in the agreed-upon condition. Make sure all agreed-upon repairs are completed, the property is clean, and all personal belongings are removed.
Not Being Present
While not always required, being available during the final walkthrough can help address any last-minute concerns the buyer may have. This can prevent misunderstandings and ensure a smooth closing.
Once your home is under contract, it’s essential to stay vigilant and avoid actions that could jeopardize the sale. By maintaining the property, complying with contingencies, managing your finances carefully, staying responsive, preparing for closing, and adhering to all legal and contractual obligations, you can ensure a smooth and successful transaction. The key is to stay proactive and engaged until the deal is officially closed.
