When you’re ready to close on the sale of your home and start moving out, it is easy to think there is nothing left for you to do. Well that’s not the case. Often, at closing time dollars can be wasted and mistakes creep into your closing documents, which add up to a heap of lost profit. Prevent money-losing problems with these seven tips.
1. Take services out of your name.
Avoid a dispute with the buyers after closing over things like fees for the cable service you forgot to discontinue. Contact every utility and service provider to end or transfer service to your new address as of the closing date.
If you’re on an automatic-fill schedule for heating oil or propane, don’t pay for a pre-closing refill that provides free fuel for the new owner. Contact your insurer to terminate coverage on your old home, get coverage on your new home, and ask whether you’re entitled to a refund of prepaid premium.
2. Spread the word on your change of address.
Provide the post office with your forwarding address two to four weeks before the closing.
Also notify credit card companies, publication subscription departments, friends and family, and your financial institutions of your new address.
3. Manage the movers.
Scrutinize your moving company’s estimate. If you’re making a long distance move, which is often billed according to weight, note the weight of your property and watch so the movers don’t use excessive padding to boost the weight. Also check with your homeowners insurer about coverage for your move. Usually movers cover only what they pack.
4. Do the settlement math.
Title company employees are only human, so they can make mistakes. Before your closing, check the math on your closing disclosure and compare it with your loan estimate.
5. Review charges on your closing docs.
Are all mortgages being paid off, and are the payoff amounts correct? If your real estate agent promised you extras — such as a discounted commission or a home warranty policy — make sure that’s included.
Also check whether your real estate agent or title company added fees that weren’t disclosed earlier. If any party suggests leaving items off the docs, consult a lawyer about whether that might expose you to legal risk.
6. Search for missing credits.
Be sure the settlement company properly credited you for prepaid expenses, such as property taxes and homeowners association fees, if applicable.
If you’ve prepaid taxes for the year, you’re entitled to a credit for the time you no longer own the home.
Have you been credited for heating oil or propane left in the tank? make sure to look into these areas.
7. Don’t leave money in escrow.
End your home sale closing with nothing unresolved. Make sure the title company releases money already held in escrow for you, and avoid leaving sales proceeds in a new escrow to be haggled over later.
Author: G. M. Filisko Source: House_Logic Realtor
Published: February 10, 2010
One reply on “7 Tips For a Profitable Home Closing”
Excellent & useful information. I will definitely pass it on to buyers & sellers.