It may be normal in other parts of the country for settlement to last for hours on end but not in Northern Virginia. Most of the time settlement can occur within an hour. However when buyer's wait until an hour before settlement to do the final walk-through there could be a chance that the hour settlement could stretch on and on and on.
If repairs were agreed upon as part of the contract and not completed, showing up at the closing table with a laundry list of items mmediately puts the sellers on the defense. If you find an issue with an AC system that isn't working or a dishwasher that leaks how can a seller call in a serviceman on 15 minutes notice?. If you want the seller to escrow money for repairs your lender needs to be notified and in some cases they need to approve the change to the HUD-1. How does everyone come to an agreement about the cost of the repairs without any time to do any research? The settlement company's role is not to sort out these details. Their role isn't to negotiate repairs. There role is to make sure that all of the documents are signed and recorded as per law.
My recommendation to buyer's is to schedule the final walk-through at least 48 hours in advance. If there are still issues to be resolved this at least gives the seller and their agent notice. If they choose to ignore that notice or not give you an update until settlement you may be stuck with the same problem but at least you gave everyone a chance to come to a positive conclusion before settlement. No one wants to sit at the closing table for hours trying to resolve what might have been a simple issue if everyone had time to work it out before the appointed settlement time.
Buyers should do their walk through at least a day before.....unless it's new construction. Then it should be sooner. I had a buyer standing in one of my seller's homes while they were in the process of moving out....making sure they didn't take anything. I wish I had known. That's down right rude.
Great advice, Cindy! The walk-through is an important step, but if you wait too late, you could be in for trouble!
Really good advice for folks, especally first time buyers. Some folks are overwhelmed with all their is to do on the day of settlement.
Cal
Good morning Cindy.
That is a great post...A great advice...
Have a nice day.
Kay-I know that the timing could be an issue for some sellers who don't move out until the last minute. However if there were repairs to be completed being able to at least inspect those repairs and review the documentation a few days before closing is important.
Rose-if there are issues sitting at the closing table for hours trying to resolve them isn't what anyone wants to be doing.
Great advice, Cindy. I've got a request for pre-settlement occupancy on a listing now and we are asking the walk through be done prior to the occupancy of the Buyer. We don't want issues that may have been caused by the move in to be thrown back in the lap of the Seller.
This is great advice for all walkthoughs where repairs were part of the contract.
This is excellent advice -- why put things off to the last minute and risk having everything fall apart when emotions are running so high!
Chris Ann-on any pre-settlement that is the way I handle it. Final walk-through is completed and signed off on. Buyer then takes responsibility for the home. Having a home warranty in place also helps deal with the what if it breaks scenario too.
Holly-when there are repairs and you discover they weren't completed then showing up at the settlement table to hash it out can be very tedious and lead to a lot of bad feelings.
Tish-I've never understood the idea of waiting until the last minute to get the walk-through done. Of course there is no guarentee when you do it 48 hours in advance that you still aren't going to end up at the settlement table working through an issue but at least everyone had notice that the issue existed.
Cal-you are right. First time buyers need to be concentrating on the loan documents and not a leaky facuet at settlement.
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