It’s not over ’til it’s over. After signing the purchase agreement, you’d think there’d be little left to do but pack. The truth is, it can take from one to three months to close the deal. To make sure you reach closing day with everything in order and all parties ready to sign, you’ll need to supervise a few important details. Your attorney can prepare the legal forms and documents that will be signed and change hands. But you must make sure other steps are taken on time, so closing day comes and goes with no surprises, just happy people — one party with a new house, the other with a check.

You’ve probably heard people say, "We’re in escrow." That’s the one-to-three month period when you’ll need to coordinate the steps that must occur before the title of your home is transferred and you get your money. Here’s what to expect.

Steps Leading to the Closing:

Scheduling the Closing
When you sign the purchase agreement, you and the buyer will agree on a closing date that is convenient for both of you. Make sure to allow at least five weeks for both parties to complete their terms of the agreement. Remember, the buyer probably will want to take possession of your home at the closing.
Once the date has been determined, the buyer should schedule the closing with a title company, which handles the closing for the mortgage company. Because the buyers are responsible for the cost of title insurance, they have the ultimate choice of which company closes for their side of the transaction. Your attorney can assist you with evaluating costs and fees and can recommend a title company.

Earnest Money
You should set up an escrow account for the earnest money given to you (or to your attorney) by the buyers. Make sure your purchase agreement stipulates what happens to the money if the deal falls through. Here are four approaches to setting up an account.
1. Your attorney can hold the money in a trust account.
2. You can keep it in your account.
3. The buyer’s real estate agent can hold it (if you’re working with an agent).
4. HomeAvenue can hold the money in its trust account.

Title
Typically, the buyer chooses a title company to handle the closing. You’ll need to give the company the purchase agreement so it can begin a title search to ensure that there are no liens (claims against the property) or unresolved issues against your property. In Minnesota, property title is either abstract or torrens, and in some circumstances both. An abstract is the summary of public records describing the history of a property; a torrens is a method used to record the history of ownership. If your property is abstract, you must locate your abstract of title and have it brought up to date. The title could be in a safe deposit box or at a title company. If your property is torrens, you’re no longer required to provide your Owners’ Duplicate Certificate of Title.

Mortgage Company
Be sure the buyer’s mortgage company receives a copy of the purchase agreement you and the buyer have signed. The company will then arrange for an appraiser to contact you to perform the appraisal. The lender relies on the appraisal to verify that the price the buyer is paying for your home is realistic. If the appraisal value is significantly below the purchase price, the lending institution may consider the loan to be too risky and deny the buyer financing.
Even though your buyers may be prequalified or preapproved, the lending
company must verify the buyer’s income, employment record, and credit history to confirm his or her ability to handle the loan. If bad credit or other problems are discovered, it could jeopardize the closing.

Final Walk-Through
Prior to closing, the buyer may choose to have a final walk-through of your
property to confirm that its condition has not changed and that any required repairs have been completed

The Closing!

A few days after the final walk-through, you’ll attend the closing at the title company’s office. At this meeting, all required legal forms are signed according to the terms of the purchase agreement. These documents and procedures include:

• A warranty deed transferring your ownership of the property to the buyer
• An affidavit stating that, among other things, you have no outstanding
  judgments, liens, or bankruptcies, as well as where you’re employed and your addresses for the past 10 years
• A bill of sale transferring your interest in any personal property that you’re
  selling to the buyer
• A Certificate of Real Estate Value (C.R.V.)
• The title company will pay off all loans on the property.
• The mortgage company will issue a Satisfaction of Mortgage, which will be recorded with the county.
• All closing expenses related to the sale of your property are paid off.
• You’ll receive copies of everything you signed, as well as a proceeds check

What You’ll Need to Pay at Closing

Yes, that’s right; it’s not only the buyers who have costs to pay at closing. Ask your closer to give you a list of fees you owe before the closing so you can review it and check the math. Mistakes can be costly.
Here’s a list of the closing costs that sellers
typically pay:

• Real estate commission (if you agreed to pay a real estate agent)
• Lender-discount points
• Loan-prepayment penalty
• Deed-recording fees
• Inspection/appraisal fees
• Attorney fees
• Abstract or title search
• Real estate taxes and assessments
• State deed tax
• Conservation fee
• Closing fee (if you hired a closing agent)
• Title-insurance premium

A sellers estimated expenses (Netsheet) is located in the forms section of this guide.

Congratulations!!

That’s it. You’ve sold your own home. Now turn over the keys and the garage-door opener. The new owners can move in, unless you’ve agreed to a later date.

It’s likely to be a bittersweet moment. You’ll be happy to have completed this great adventure but probably a little sorry to say good-bye to your home.

Well, you won’t have much time to be sad because there’s more to do. You’ve got to move out of your old home and in to your new one. To help you get started, here are a few things to remember to do before you move out.

Movin’-On Checklist

• Contact your utility companies and arrange to have utility meters read as of the possession date. Have final bills sent to your new address.
• Provide the post office with your forwarding address and the date to stop your mail.
• Contact your newspapers and magazines and do the same.
• Thoroughly clean your empty house to welcome the new owners.

Now, as a distinguished FSBO alumni, you can spread the word about how your success and hard work have helped you keep more of your equity for your future and given you more to apply to your new home.

Go ahead and celebrate your accomplishment! And best wishes, wherever your next move takes you.

Click below for additional information to assist with the sale of your home:

Your Quick Guide Checklist for a Successful Sale

FAQs (Frequently Asked Questions)

Traits of Successful Sellers

“Let’s Make a Deal”: A Home Seller’s Experience

Glossary of Real Estate Terms