The Closing Process of Selling a Home: What to Expect
Selling a home is a significant milestone, and reaching the closing stage means you’re almost at the finish line. However, the closing process can still feel overwhelming if you’re not familiar with what happens during this final phase. Understanding each step will help ensure a smooth transaction and reduce the risk of last-minute surprises.
Here’s a breakdown of what to expect during the closing process when selling your home.
1. Accepting the Offer
Once you’ve accepted an offer on your home, the buyer typically deposits earnest money into an escrow account. This shows their commitment to the purchase and starts the formal closing process.
2. Opening Escrow
An escrow account is a neutral third party that holds the funds and documents involved in the transaction until everything is finalized. The escrow agent ensures both parties meet their obligations.
3. The Home Inspection and Appraisal
After the offer is accepted, the buyer will usually schedule a home inspection. If the inspection reveals issues, the buyer may request repairs or negotiate a credit. Around the same time, their lender will order a home appraisal to confirm the property’s value aligns with the loan amount.
As the seller, be prepared for possible negotiations following these steps. Being flexible and responsive can help keep the deal on track.
4. Title Search and Insurance
The title company will conduct a title search to ensure there are no legal issues—like liens, judgments, or unpaid taxes—associated with the property. If issues are discovered, they must be resolved before closing.
Title insurance is also purchased (often by the buyer or their lender) to protect against any future claims on the property.
5. Repairs and Final Walkthrough
If any repairs were agreed upon, they should be completed before the final walkthrough. This is the buyer’s opportunity to verify that the condition of the home matches what was agreed upon in the contract and that all repairs are complete.
6. Closing Disclosure
Before closing, the buyer receives a closing disclosure at least three days in advance. This document outlines all the financial details of the transaction. As the seller, you’ll also receive a settlement statement showing your proceeds after all costs and fees.
7. Signing the Paperwork
At the closing appointment, both the buyer and seller sign all necessary legal documents. For the seller, this includes the deed, bill of sale, and other affidavits. This is typically done at the title company or attorney’s office, depending on your state.
Be sure to bring a government-issued photo ID and any keys, garage openers, and warranties you’re transferring to the buyer.
8. Transfer of Ownership and Funds
Once all documents are signed and the buyer’s funds are verified, the title is officially transferred to the new owner. The escrow agent disburses the funds, pays off any remaining mortgage balance, and sends you the proceeds from the sale—typically via wire transfer or check.
9. Moving Out
Sellers usually move out before the closing date unless another arrangement has been made, such as a rent-back agreement. Be sure the home is clean and free of personal belongings unless otherwise specified in the contract.
Final Thoughts
The closing process involves multiple steps and parties, but with a reliable real estate agent and clear communication, it can go smoothly. Knowing what to expect helps you avoid delays and ensures a seamless handoff to the new homeowner.
If you’re getting ready to sell your home and want expert guidance every step of the way, contact us today. We’re here to help make your sale successful from start to close.
Seller’s Closing Checklist
Use this checklist to stay organized as you move through the final steps of selling your home.
1. After Accepting the Offer
- Confirm earnest money is deposited into escrow
- Provide property disclosures to buyer
- Open escrow with title/closing company
- Review contract deadlines and contingencies
2. During Inspection & Appraisal
- Prepare your home for the inspection
- Be available to answer questions or provide repair estimates
- Review and negotiate any repair requests
- Prepare for appraisal (clean home, curb appeal, list of upgrades)
3. Title & Legal Documents
- Work with the title company to clear any liens or encumbrances
- Review preliminary title report
- Confirm the buyer has ordered title insurance
4. Before Closing
- Complete all agreed-upon repairs
- Schedule utilities to be transferred or canceled
- Gather warranties, manuals, and keys for buyer
- Review the final settlement statement
- Verify your forwarding address and mail redirection
5. On Closing Day
- Bring valid photo ID
- Sign the deed and closing paperwork
- Hand over all house keys, remotes, and entry codes
- Confirm how and when you’ll receive sale proceeds
6. Post-Closing
- Cancel homeowners insurance (after closing is confirmed)
- Cancel automatic payments for mortgage and utilities
- Keep a copy of the closing documents for your records
Tip: Work closely with your real estate agent and closing company to stay on schedule and informed of any changes.
