Tips For The Final Walkthrough
What Is A Final Walkthrough?
For those who are unfamiliar, the final walkthrough is an opportunity for a home buyer to inspect the property before closing. The final walkthrough is normally done after the seller has moved out, which allows a buyer to confirm that any agreed-upon repairs have been made, the appliances are in working condition, there’s no new damage, etc.
Essentially, the final walkthrough allows a buyer to do one final check before handing over large sums of money to the seller. It’s a way of making sure the property is in the same condition compared to when the parties signed the contract of sale, as well as ensuring the seller made any additional repairs to which the parties previously agreed.
When To Perform The Final Walkthrough
Best practice means doing a final walkthrough as close to the closing as possible, usually either a few hours before or, at the latest, the day before. During the walkthrough, a buyer and their realtor will go literally walk through the property and check that there’s no new damage, that all the systems and appliances included in the sale are still working and that the home is in a clean, “broom swept” condition.
If the seller moved out some time ago, a buyer should also be on the lookout for things that could’ve gone wrong since the property was vacated.
Participating in a final walkthrough is crucial. Not only is a buyer about to make a substantial purchase, but he or she is also about to become legally and financially responsible for the property. Skipping a final walkthrough could mean inadvertently taking on a big financial burden, having to pay for a repair a buyer already negotiated with the seller to cover, or worse.
Final Walkthrough Checklist
In the excitement of finally closing, it can be easy to overlook issues, so it is helpful to know ahead of time what a buyer should look for to avoid getting sidetracked thinking about all the ideas for your beautiful new kitchen.
In general, a buyer wants to make sure that all of the seller’s stuff has been removed, that everything included in the sale is still there, that any negotiated repairs have been completed, and that there aren’t any new problems or damage to the property, e.g., damage suffered when the sellers moved out.
It’s helpful to carry a checklist when a buyer attends the final walkthrough. Here are some ideas to ensure the property is in good shape, inside and out.
Outside The Property
Ensure garage door openers are working and that the seller has the remotes to turn over at the closing.
Check for debris outside the house.
Look for obvious signs of pests.
Look for damage to the yard, mailbox, or other signs of disrepair.
Make sure yard items that were sold with the house – storage sheds, landscaping, etc. – remain with the home and haven’t been taken or dug up.
Inside The Property
Check that light fixtures and outlets are in working condition.
Test faucets, check for leaks, test the hot water, make sure all drains are clear, etc.
Check for mold and/or water damage.
Test all appliances, including the stove, washing machine, and dishwasher.
Make sure the fridge is cold.
Check that doors and windows open, close, and lock.
Ensure that all fixtures have remained in the home.
Flush the toilets.
Inspect walls and floors for damage.
Check the garbage disposal and exhaust fans.
Test the thermostat and check out HVAC systems.
Ensure the home has been swept or vacuumed and isn’t excessively dirty.
In addition to having a checklist, a buyer should ask their real estate agent to join the walkthrough. If a buyer took the time to find a reliable agent, he or she will be an old pro at knowing what to look for during the walkthrough.
A buyer can also consider re-hiring the professional who performed the home inspection. Because they make a living from inspecting almost everything a buyer would check during a final walkthrough, a home inspector is a great way of ensuring nothing falls through the cracks as it relates to the physical character of the property.
What If Something’s Wrong
If issues come up during the final walkthrough, the seller must work with the buyer to find a solution that satisfies the seller’s obligations and the buyer’s rights according to the contract of sale.
Usually, the closing still occurs because most issues that come up are usually minor in nature. As a result, the most common solution to addressing such issues includes holding some of the seller’s proceeds in his or her attorney’s escrow account to cover the costs of fixing the problem.
Final Walkthrough Preparation For Sellers
To make sure a seller is prepared for the final walkthrough, they should read the contract of sale and consult with their attorney. Doing so will explain what repairs need to be made and what items must be left with the property in order to complete the closing.
Completing Repairs
If the contract of sale stipulated that the seller would complete repairs before closing, getting those done in a timely manner is necessary for a successful closing. Be sure to be communicative about the repairs and, if there are delays, make sure to be transparent with a buyer.
Keep Receipts
Be sure to keep any receipts or other paperwork related to the completion of the repairs. If problems come up later, having the receipts will help when reaching out to contractors who completed the work.
Do Some Light Cleaning
Make sure the house is clean and that nothing is being left behind. Even if the seller thinks they’re doing a buyer a favor by leaving a couch or leftover paint, chances are more likely a buyer will ask that such items are removed before the closing can occur.
The general rule is to leave the property in “broom swept” condition, which means that the property should be swept or vacuumed and cleared of clutter. A buyer will likely do a deep clean after moving in, but the seller should still make sure they’re not leaving behind a dirty home that could complicate the closing and eventually cost the seller money unnecessarily.
Know What Stays And What Goes
An important thing for a seller to remember is that the house must remain how it was when the buyer signed the contract of sale. Disputes can (and likely will) arise if the seller took something that a buyer assumed would stay with the property.
When it’s time for the seller to move out, there are certain things that must remain with the property. The seller should talk with their real estate agent regarding the difference between personal property and fixtures.
Items such as furniture, electronics, and decor move with the seller because they’re considered personal property and are usually excluded from the sale. Things affixed to the property such as chandeliers, built-in bookshelves, etc., are considered fixtures and are legally considered to be part of the property. If the seller wants to keep these items, they need to negotiate for as much during the contract stage.
When in doubt, reference the contract of sale. The last thing anyone wants is for a buyer to back out because the seller dug out the garden to bring with them to their new house.
The Bottom Line
The final walkthrough is a fundamental step in the home buying process. Buyers need to make sure they know what to look for to ensure that what they’ve agreed to purchase is what they’re getting.
If you have questions about final walkthroughs, contact The Donaldson Law Firm.