Tips to Help You Close Your House Sale in Michigan
Closing in 12 Vital Steps in Michigan for Sellers
“Expect the best, prepare for the worst, capitalize on what comes.”
Why Does Planning for a Successful Closing Matter in Michigan?
If you are in the market to buy or sell real estate in Michigan, you need a closing for that to happen. The buyer must have their due diligence and financing ready and the seller must have the property and title ready to close. The sales contract says when all of this must be done and if timelines are not met you are out of contract which costs time and money for all parties involved and may jeopardize your deal. It is vital to be organized and know the steps for a successful closing.
What Can Slow Down or Derail a Closing?
• Unresolved inspection issues like needed repairs or seller concessions related to repairs.
• Disorganized or slow lender.
• Buyer slow to provide documents or having underwriting issues with credit or trouble qualifying for the loan.
• Title issues on the property like liens or not having clear property ownership documented.
• Home Owner Associations that are slow or disorganized or owed money.
• Not having inspections or appraisals done in a timely way per the sales contract.
• Real estate agents that are slow or disorganized.
• Not prepared for closing with proper identification, having a change in marital status, or not bringing enough money to the closing as a buyer.
What are the Vital Closing Steps for Buyers?
1. Start the process early.
Get pre-approved or have your cash or equivalents ready.
2. If working with a lender, provide all documents necessary in a timely manner.
3. Have inspections completed within the timeline stated in the sales contract
Make sure to share concerns from inspection results and desired remedies within the contract timelines as well.
If more time is required to complete inspections, request an extension in the inspection timeline.
Get contractor bids for any major repairs to share with seller.
If the property has a well and septic system in Washtenaw County and some other locations in Michigan, an inspection is required before closing.
It is always a good idea to have a well and septic system inspected regardless if it is required.
5. If buying in an area that requires a Certificate of Occupancy like the township of Wayne, Michigan make sure the certificate is up to date and any necessary repairs completed.
6. Make sure the appraisal is ordered in a timely way so as not to delay closing if working with a lender.
7. If needing to bring cash to closing or equivalents, be sure to provide proof of funds before closing.
8. Have attorney reviews completed and clear this contingency before closing.
9. Review title search for any issues like liens and unclear property ownership.
10. Stay in contact with the seller or seller’s representative regularly through the closing process to make sure contract timelines are being met and any issues resolved quickly.
11. Stay in regular contact with the seller’s title company for the closing and make sure they also feel like the closing date on the sales contract is realistic and on track and resolve any issues with the seller or their representative that may arise.
12. Arrange for insurance for the property before closing.
13. Understand when possession will take place after closing and if the seller is maintaining possession after closing and the contract details for that.
14. Before the closing, make sure you do a final walkthrough of the property to make sure it is in the same or similar condition as the last time you saw the property.
15. Do not make any major changes to your finances or marital status before closing and bring all necessary funds and documentation to the closing.
16. At closing and before closing, review all documents and make sure it reflects what was agreed for all fees and conditions of the sale.
17. After closing, if there was a water escrow for a final water bill, provide the title company with the final water bill for the time the seller owned the property to be paid.
What are the Vital Closing Steps for Sellers?
1. Before accepting the buyer’s offer make sure they are a strong borrower and/or have proof of funds.
Make sure you have faith in the lender, the buyer and/or buyers representative and the proof of funds.
2. Understand and monitor the sales contract timelines so the deal stays on track and within contract.
3. If selling a property in a location like the township of Wayne, Michigan that requires a Certificate of Occupancy to sell the property make sure all repairs, if any, are made quickly so as not to delay the closing.
4. Be in regular communication with the buyer or buyer’s representative to make sure that contract timelines are being met and issues resolved quickly.
5. After the inspection, either decide to fix or remediate any issues or give the buyer a credit or reduction in the sales price to reflect the needed repairs if any.
6. Make sure the appraisal is ordered and plan to meet the appraiser or your representative to share your thoughts on comparable sales for your property and answer any questions on improvements that were done to the property recently.
7. Decide where the closing will take place and have the title company do a title search and prepare title insurance per the terms of the sales contract.
Resolve any title issues as quickly as possible and be in contact about the title work with the buyer or buyer’s representative.
8. If the buyer is working with a lender, check in regularly to make sure the lending and underwriting process is on pace to close on or before the closing date.
9. If occupancy is needed after closing, make sure the details of that are followed per the sales contract.
10. Once the buyer has a clear to close from their lender, set the closing date once all other conditions have been met in the sales contract.
11. Make sure the property is as clean as possible and prepared for the buyer’s final walk through before closing.
12. At closing, bring keys if occupancy is to take place at closing and proof of paying the final water bill.
How Can a Real Estate Professional add Value to the Closing Process?
• A real estate professional can help the buyer by presenting the offer in the best light to the seller and making sure all inspections, appraisals and contingencies are met and the transaction closes on or before the closing date.
• A real estate professional can help a seller by making sure the buyer is qualified before accepting the offer and making sure the contract timeline is followed by the buyer and title work ready to close on or before the closing date.
• Basically, a real estate professional brings their experience, relationships and reputation to add value to the closing process.
Why Managing the Closing Process is Vital for Successfully Buying a Home in Michigan
Buying a home is an emotional process for the buyer and the seller. It is a large purchase and needs to be done well. Knowing the steps in advance of selling your property can set the stage for a smooth and successful closing. Having an experienced real estate professional can keep a deal on track especially if issues arise.
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Disclaimer:
Always speak to your CPA, investment advisor and attorney before making any investment decisions. Past performance does not guarantee future returns. Arbor Advising seeks to educate and does not endorse any specific product, service or investment.
