All About This Post
Thank you for tuning in. This post addresses the Boulder closing process for residential real estate. This post is written from the perspective of home sellers. What are the pitfalls associated with closing a real estate transaction? How long is a closing? What should you expect as your Boulder closing process unfolds?
Pitfalls In Boulder Closing Process
First and foremost, until the buyer signs on the dotted line and the deal funds, you are still the owner. So some of the important obstacles to overcome are actually getting all the buyers into the room to sign. On occasion, buyers can get cold feet. We need the buyer’s lender to get all the closing documents and funds to the title company in a timely manner to facilitate the closing. Not all lenders are created equally, so be prepared for an occasional bumpy road on the day of closing.
On some occasions, the buyer’s bank may be on East coast time, we are closing on Mountain time. This can sometimes require a delay of closing or having the funds wired by the bank the day before to ensure timely delivery at closing.
Additionally, these days underwriters will often require last-minute verifications from the buyer. We need to be prepared to help the buyer overcome any issues in the Boulder closing process. Examples abound for me in recent transactions.
“Underwriters are like real estate detectives” (Realtor.com)
In one transaction, we needed the buyer to agree, in writing, that an included television set left with a home had no value. Or on another occasion, the lender required removing a door to a shed. Odd, I know. But at the end of the day, getting to closed sometimes requires flexibility and a willingness to overcome odd lender requests.
Final affidavits will be signed as part of the Boulder closing process. As such, any last moment issues with the home may require addressing before closing. For instance, I had a transaction where the seller had some work done. With the best of intentions, the work was completed, but the gear of the contractor was not picked up. This potentially placed the buyer liable for the work, so the seller signed an affidavit acknowledging the completed work and escrow-ed funds to disburse post-closing.
The Closing Itself
For home sellers, the closing itself will be a quick affair. There are a handful of real estate related documents, the HUD (provided the buyer has a loan) and settlement sheets. Home sellers should budget a minimum of 30 minutes for the closing. If you stay for the entirety of the closing, you’ll leave with a copy of all documents and your proceeds check.
Frequently one or bath agents will require an original signature on a disclosure. This is also an opportunity to tell the buyer firsthand about your neighborhood, home, neighbors, schools, favorite nearby park. First time home buyers especially appreciate this information. Or, if you prefer, we can schedule a private time for your closing.
Don’t Forget
Don’t forget to bring all the house keys and call the gas/electric company to cancel your utilities. The title company will transfer the water bill as part of the Boulder closing process.
Closed Boulder Home
Once the transaction is closed, there is a delay – usually about 30 minutes – as the closing agent sends and confirms all the documentation with the lender. A confirmation code releases the bank’s funds. Next, the title officer will make copies (electronic is an option) of all the documents. Finally, funds are disbursed – at the closing table – to the seller and buyer (sometimes there is an overage or refund). And that’s it. The home seller is now free and clear of the house, and the buyer is now responsible for managing the house.