Countdown to Closing Day: What to Expect When You Are Buying or Selling a Property

Closing day is the exciting final step in the real estate process, but it can also come with a lot of questions and details to handle. Whether you’re buying or selling a property in California, understanding the steps leading up to closing day will help ensure everything goes smoothly. For buyers and sellers alike, this can be a time of excitement and anticipation as you prepare to complete the transaction and transfer ownership.

Buyers

For buyers, the final weeks before closing are about confirming that all financing and inspections are in order. The lender will likely schedule a final walkthrough to ensure the property is in the agreed-upon condition. You may also need to review and sign various documents, such as the closing disclosure, which outlines the final terms of your loan, closing costs, and any adjustments. It's important to review these documents carefully and ask your agent or lender any questions. On closing day, buyers will bring a cashier's check or arrange for a wire transfer to cover the remaining down payment and closing costs.

Sellers 

For sellers, closing day is the moment when the property officially changes hands. In the weeks leading up to the closing, sellers need to ensure that they’ve completed any agreed-upon repairs, provided necessary documentation (like disclosures), and packed up all their belongings. On closing day, sellers will meet with their agent and possibly a notary to sign documents, including the deed to transfer ownership. Once all paperwork is signed, the seller will receive the proceeds from the sale, minus any outstanding mortgage balance and closing costs.

Timeline

No matter whether you’re buying or selling, the closing process in California generally takes between 30 to 45 days after an offer is accepted. During this time, various parties—including lenders, title companies, and escrow agents—will handle the necessary paperwork to ensure a smooth transaction. Once everything is signed and funds are transferred, the home is officially yours (for buyers) or you’ll be free to move on to your next chapter (for sellers). By understanding the process and staying organized, you can approach closing day with confidence and excitement.

12 Things to Remember as Closing Day Approaches:

1. Review the Closing Disclosure
   Ensure that all the details in the closing disclosure, including the final loan terms, closing costs, and any adjustments, are correct.

2. Schedule a Final Walkthrough (Buyers)
   Buyers should schedule a final walkthrough of the property to ensure that it’s in the agreed-upon condition and that any repairs or requests have been completed.

3. Double-Check Your Financing (Buyers)
   Confirm with your lender that all financing is in place and that you have the necessary funds for your down payment and closing costs.

4. Organize Necessary Documents
   Make sure you have all required documents, such as identification, proof of homeowners insurance, and any lender-required forms, ready for closing.

5. Arrange for Funds (Buyers)
   Arrange for the down payment and closing costs, either via a cashier's check or a wire transfer. Confirm the exact amount and the preferred payment method with your agent or lender.

6. Review the Title Report
   Confirm with your escrow officer or agent that the title report is clear and that no issues, like unresolved liens, are present on the property.

7. Confirm Closing Date and Time
   Confirm the date, time, and location of the closing with your agent, the title company, and the lender to avoid any last-minute confusion.

8. Complete Any Agreed-Upon Repairs (Sellers)
   If you’ve agreed to make repairs before closing, ensure that they are completed on time and that any necessary receipts or invoices are provided to the buyer.

9. Cancel or Transfer Utilities and Services (Sellers)
   Sellers should make arrangements to cancel or transfer utilities, home security services, and other accounts to the new owners’ names on or before closing day.

10. Pack Up and Remove Personal Items (Sellers)
    Ensure that all personal belongings are packed and removed from the property, leaving it clean and ready for the new owners.

11. Review the Settlement Statement (Sellers)
    Sellers should review the settlement statement to confirm that all proceeds from the sale and deductions (like mortgage balance and agent fees) are accurate.

12. Plan for Moving Day
    Both buyers and sellers should plan for moving day logistics, including arranging for movers, setting up new services, and scheduling a smooth transition.