THE "FINAL WALK THROUGH" IS NOT ALWAYS THE "FINAL" MATTER. Best Business Practices.
Inspired by Jerry McCombs in an article about the "final" walk-through. Jerry provides some good information for buyer's agents.
PRE-SETTLEMENT WALK-THROUGH. We refer to this stage of contract management as the PRE-SETTLEMENT WALK-THROUGH. It isn't always so "final". The pre-settment walk-through serves many purposes.
"Honey. When are we going to be able to move in? All of our furnitues will be here at 4:00."
"Let's get to settlement Dear. If our moving van is delayed, the sellers will have to pay."
CONDITION. Is the home in the same condition as when the buyer saw it?? This is complicated in some states (Virginia) because the buyer has the choice here to select the stage for which the pre-settlement condition is (1) when first viewed, (2) other times, etc.
WHAT'S THE BEST TIME FOR A PRE-SETTLEMENT WALK-THROUGH?
After the seller has loaded all of their furniture on the moving van, or is in the progress of doing so.
WERE THERE REPAIRS AGREED TO AND ARE THEY COMPLETED?? The buyer and their agent may want to do a 2 stage pre-settlement walk-through. First to inspect any repairs agreed to under the home inspection and then right prior to settlement to make sure the appliances, systems are operating and the property is vacant and no damage was done in the move-out. Clearly, if there were no repairs under the home inspection, a one step pre-settlement walk-through is fine and generally preferred by buyers.
GET TO THE SETTLEMENT TABLE. If the seller has not removed their personal property, WE STILL GO TO SETTLEMENT.
SELLER HAS NOT REMOVED THEIR PERSONAL PROPERTY??? Since the Contract of Sale is clear that the buyer takes posession by a date certain, that means paying for the property, collecting keys to the property they have purchased. At that time, the SELLER WILL HAVE REMOVED ALL PERSONAL PROPERTY AND BELONGINGS, including any trash and debris. So, even if the seller is still moving out, we go to settlement.
IF THE SELLER IS STILL MOVING OUT, clearly the buyer must wait until the move-out is completed and the FINAL walk-through can be accomplished. The ESCROW is to give the seller incentive to get OUT OF THE HOUSE and leave it in good condition so the buyer can move in. When the property contains seller's personal property, we advise the title attorney to adjust the HUD-1 Settlement Statement to reflect an ESCROW that will be held until the seller removes ALL of their personal property (including trash and debris) to compensate THE BUYER for the removal of seller's former property, trash and debris. If the seller's furniture is already on the moving van, the buyer has considerable negotiation power with respect to escrow and compensation for inconvenience and/or expenses.
ONCE THE SETTLEMENT IS COMPLETE and the buyer has paid for the house, the seller owes compensation to the buyer for the inconvenience caused by their poor planning.
THE LISTING AGENT KNOWS. We always notice the listing agent by e-mail, fax and verbally to keep them informed 
about the progress of the pre-settlement walk-through so they can encourage the sellers to follow the contract.
NO SURPRISES. We don't want the seller to be faced with an escrow to protect the buyer if the seller hasn't followed the MOVE-OUT protocol. HOWEVER, we must protect our buyer from any additional move-in expenses and inconvenience.
JUST DOING OUR JOB.
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.
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