When Should You Do a Final Walkthrough Before Closing?

The final walkthrough is an important step in a real estate transaction, serving as the buyer’s last opportunity to inspect the property before transferring ownership. It ensures the home is in the expected condition, aligning with the terms of the purchase agreement. This inspection confirms any previous issues have been addressed and no new problems have emerged, protecting the buyer’s interests before closing.

When to Conduct the Walkthrough

The optimal time for conducting a final walkthrough is typically within 24 to 48 hours before the scheduled closing. This timeframe is chosen because it is close enough to the closing date to reveal any last-minute changes or damages, but also allows a brief window for addressing minor issues if they are discovered. Scheduling the walkthrough after the seller has moved out is often ideal, as it allows for a clear view of the property without personal belongings obscuring potential problems.

Factors such as weekend closings or specific seller move-out schedules can influence the exact timing. For instance, if closing is on a Monday, the walkthrough might occur on the Friday afternoon before. Coordination with real estate agents for both the buyer and seller is necessary to ensure the property is accessible and ready for inspection.

This timing also helps verify that utilities are still active, which is necessary for testing appliances and systems. A walkthrough too far in advance might not reflect the home’s condition at the moment of transfer, while one too close to closing could leave insufficient time to resolve significant findings.

What to Verify During the Walkthrough

During the final walkthrough, a buyer should meticulously inspect various aspects of the property to ensure it meets the agreed-upon conditions. One primary focus involves confirming that all repairs stipulated in the purchase agreement have been completed to satisfaction. Buyers should refer to their home inspection report and any repair amendments to verify each item, checking the quality of the work.

A thorough check of all included appliances and major systems is also necessary. This means testing the functionality of items such as the refrigerator, stove, dishwasher, washing machine, dryer, and garbage disposal. Buyers should also test the heating, ventilation, and air conditioning (HVAC) system, run water in all sinks and showers to check pressure and drainage, and flush toilets. Electrical components, including light fixtures, switches, and outlets, should be tested throughout the home.

The inspection should extend to every room, looking for any new damage that may have occurred since the last visit, such as scuff marks on walls, chipped doorways, or broken windows. Buyers should also confirm the property is broom-clean and free of debris, trash, and the seller’s personal belongings, unless specific items were agreed to be left behind. This ensures the home is ready for immediate occupancy.

An exterior inspection is equally important, focusing on areas like the roof, gutters, foundation, and landscaping for any new issues or changes. Buyers should verify that all fixtures, window treatments, and other items specified in the contract remain present. Taking photos or videos during this process can provide valuable documentation of the property’s condition.

Responding to Discovered Issues

Upon discovering any issues during the final walkthrough, immediate documentation is essential. Buyers should take clear photos or videos of the problems and make detailed notes, providing specific descriptions of what was found. This documentation serves as evidence when communicating with the seller. Promptly notifying the real estate agent about any discrepancies is the next step, as the agent will facilitate communication with the seller’s agent.

Typical resolution options include requesting the seller to fix the problem before closing, negotiating a credit from the seller at closing to cover repair costs, or placing funds in an escrow account until repairs are completed. A seller credit can be appealing as it allows the buyer to control the repair process and contractor selection after closing, often by offsetting closing costs. These credits can be added to the sales price or come directly from the seller.

For more significant issues or when repairs cannot be completed before closing, an escrow holdback may be arranged. In this scenario, a portion of the seller’s proceeds, typically 1.5 to 2 times the estimated repair cost, is held by a third party until the work is done to satisfaction. This arrangement ensures funds are available for the repairs and provides an incentive for the seller to complete them, even after the sale has officially closed.

While most issues found during a walkthrough are minor and can be resolved through negotiation, severe problems might lead to a delay in closing or, in rare circumstances, the termination of the contract. The urgency of addressing these issues is paramount due to the proximity of the closing date. Working closely with the real estate agent helps navigate these negotiations and determine the most appropriate course of action, aiming for a resolution that allows the transaction to proceed.