The Final Countdown: Essential Tasks Before Closing Day
Buying or selling a house requires a lot of things from all parties involved. The most important part of your homebuying or selling experience comes down to the closing day — and by the time you get to it, you may feel more than ready to cross the finish line. (1)
Closing on a house occurs when the buyer signs the papers that make it theirs, but other steps must be taken before that fateful day arrives. This article outlines the tasks that must be completed between the time your offer is accepted and when you receive the keys to your new property.
Open an Escrow Account
A third party holds an escrow account on behalf of both the buyer and the seller. A home sale consists of several steps that are completed over a period of weeks. As a result, bringing in a neutral third party is the best method to ensure that neither the vendor nor the buyer is misled. This third party can keep all the money and documentation relating to the transaction until everything is settled.
Once all procedural formalities have been completed, the funds and papers are transferred from the escrow account to the seller and buyer, ensuring a secure transaction.
Obtain Title Search and Insurance
A title search and insurance provide peace of mind and legal protection. They assure buyers that if they buy a property, no one else can claim it afterward. A title search is an investigation of public documents to establish and validate a property’s legal ownership and any claims on the property. If there are any claims, they may need to be handled before the buyer receives the property.
Title insurance is indemnity insurance that protects the holder from financial loss caused by problems in the title of a property. It protects real estate owners and lenders from losses or damages caused by liens, encumbrances, or title flaws.
Negotiate Closing Costs
Everything from opening an escrow account to hiring a real estate attorney costs money. If you are not careful, these expenses might add up to a large sum of money. For example, house and pest inspections are essential in determining a property’s actual value. You must disclose the findings of these inspections to prospective buyers.
However, many inspection firms exploit users’ ignorance by demanding exorbitant costs. Even fees for genuine closing services may be exaggerated. Junk fees are costs imposed by a lender at the time of mortgage closing that are sometimes unforeseen by the borrower and not fully explained by the lender. These fees can add up to a large sum.
Junk fees include administrative fees, application review fees, appraisal review fees, ancillary expenses, processing, and settlement fees. 
Complete the Home Inspection
A physical house inspection is required to identify any potential faults with the property and examine its surroundings. If you discover a severe problem with the home during the inspection, you can pull out of the agreement or ask the seller to rectify it. You can also have the seller pay for the repairs (if your purchase offer contains a home inspection contingency). As a seller, you can sell the house to a cash home buyer that provides sell my house fast Bethlehem service and avoid completing any repairs found during the home inspection.
Hire an Attorney
While legal aid is optional, seeking a professional legal opinion on your closing documents is usually preferable. Even well-educated people may struggle to understand the dense jargon contained inside them. For a reasonable charge, an opinion from an experienced real estate attorney can provide numerous benefits, including indications of any potential difficulties with the documentation.
Get a Pest Inspection
Pest inspections are separate from home inspections. An expert will inspect your home to ensure that no wood-destroying insects, such as termites or carpenter ants, are present. Pests may be devastating to timber structures. Many mortgage firms require that even small insect issues be resolved before closing the transaction.
A tiny infestation can grow to be exceedingly destructive and costly to treat. Wood-destroying bugs can be controlled, but you should be sure the problem can be treated for a reasonable charge. You can also persuade the seller to pay and have pests removed before you finish the transaction. Pest inspections are legally mandatory in certain states, while others make them voluntary.
Renegotiate the Offer
Even if your purchase offer has already been accepted, you may want to renegotiate the price to include the cost of any repairs discovered during inspections. You might alternatively keep the purchase price the same but ask the seller to pay for the repairs. Even if you are acquiring the property “as is,” it is not a bad idea to ask. A buyer can also cancel without penalty if a severe fault the seller cannot rectify is discovered.
Understand the Paperwork
Paperwork is essential for completing a property transaction. Even though there are stacks of paperwork filled with sophisticated legal phrases and jargon, you should read them all yourself. If you don’t understand something, talk to a real estate attorney. Your attorney will also assist you in making sense of any difficult legal terminology.
Although you may feel rushed by the individuals waiting for you to sign your documents, read each page carefully because the fine print can have long-term consequences. In particular, ensure that all agreed-upon terms are clearly stated. In general, compare your closing costs to the good faith estimate provided at the start of the process. Vigorously challenge any fees you think are unlawful.
Selling to Cash Home Buyer
The closing process is much easier when you sell property for cash in Allentown. The closing date for a cash buy is frequently much closer than that for a mortgage-based acquisition. A cash home buyer Allentown who waives the appraisal and inspection (or rapidly schedules these appointments) can close on a home within a week of making an offer, as long as the seller no longer resides there. Companies that pay cash for houses in Allentown don’t expect sellers to conduct pest inspections, home inspections or hire agents.
These companies also buy homes as-is, meaning they don’t expect sellers to complete any repairs. During the offer talks, both the buyer and seller will agree on a closing date that is convenient for them
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About the author
Mathew Pezon
Mathew Pezon is the founder and CEO of Pezon Properties, a cash home buying company located in Lehigh Valley, Pennsylvania. With several years of experience in the real estate industry, Mathew has become a specialist in helping homeowners sell their properties quickly and efficiently. He takes pride in providing a hassle-free, transparent, and fair home buying experience to his clients. Mathew is also an active member of his local community and is passionate about giving back. Through his company, he has contributed to various charities and causes.
