Performing the Final Walk Through
Before you close on your home, you have the right to conduct a final walk through. Usually performed either the day of or the day before the closing, the final walk through is your last opportunity to inspect the property and ensure that it is being conveyed to you in the condition you expect. You will check for the following:
The condition of the property has not substantially changed since you agreed to the purchase, and no new damage has been done.
Any and all repairs you requested to be made by the seller prior to closing are completed to your satisfaction.
The items the seller agreed to leave are still in or on the property, and items they agreed to remove have been removed.
Why is the Walk Through Important?
If, for example, you conduct the walk through and you notice that the refrigerator you saw at the initial showing and later at the home inspection has been replaced with an older unit, the best time to address that issue with the seller is before the closing. Handling the issue before closing ensures that you are getting the property in the condition you agreed to when you made an offer to purchase it. Once you’ve purchased the property, you have no leverage on the sellers to get them to make repairs or reimburse you for expenses related to those repairs.
What Should You Look For?
As a real estate buyer, you probably have three documents on hand to bring to the final walk through: your real estate purchase contract, including any separate agreement for repairs and the property inclusion list; the listing sheet, which also lists the items remaining in the property; and your inspection report. This documentation will be important for you to refer to during the final walk through to ensure that the seller has met the terms of your agreement.
Your real estate agent will likely attend the walk through with you. You may also choose to bring your inspector along for a second look. In preparation for any problems and to document them, you may want to bring along a digital camera.
In addition to issues identified in the contract, listing sheet, and inspection, here are some other areas to pay special attention to:
Appliances: Are the appliances the same ones that were in the property when you last saw it? Are they in working order? Turn on the stove, dishwasher, washer, dryer, and any other appliances to make sure they work.
Mechanicals/plumbing: Test the hot water, heating unit, and air conditioning, if possible. Turn on the lights and ceiling fans. Flush the toilets and run water from the faucets.
Attic/basement: Have these areas been cleaned out? Has there been any water damage, especially from rain or leaky pipes?
Ceilings/flooring/walls: Is there any damage, or are there any cracks that were hidden by furniture, wall hangings, or boxes? Did the sellers’ movers cause any damage to the ceiling or walls? Is the property considered to be in broom-clean condition?
Exterior: Did the sellers leave any trash by the curb? If so, have they made arrangements to have it picked up? Was trash left in the yard? Are the trees or shrubbery damaged or removed? Also, check the condition of the roof, gutters, windows, and any other exterior structures or features.
What if you see a problem?
Is the problem a repair that the seller was supposed to fix before the closing, or is the problem a new one, such as a dining room chandelier that was replaced with an inexpensive light fixture after the inspection? Regardless, you have the right as a buyer to purchase the property in the condition you expect it to be in. If you come across an issue during the final walk through, talk with your agent and/or attorney about how to handle it. You typically have several options:
Renegotiate the Price with the Seller/Ask Seller to Contribute Money for Repairs
You can ask the sellers to reduce their price or give you money back at the closing in the amount you expect the repairs to cost. This issue may take some negotiation and could involve obtaining estimates by contractors, which may delay the closing. The most important thing is to get enough money to cover the potential costs for the repairs.
Get Sellers to Put Money in Escrow for Repairs
If the closing cannot be postponed, the sellers may agree to put money into escrow until the repairs can be made. The money, held by an attorney, will be released to the buyer only after receipts for the repairs are given to the attorney. If more money is in escrow than is needed to make the repairs, the difference is returned to the seller. If there isn’t enough money in escrow to cover the costs, the buyers must pay out of their pocket. Again, the key for a buyer is to have enough money to cover the potential costs.
If you and the seller cannot come to an agreement about the issues revealed at the final walk through, you may be able to delay the closing until the issues can be resolved. Postponement may not be ideal, but if the repairs are significant, it may be the only option both buyers and sellers can agree to.
Jessica P. Beganski is a licensed Realtor with A Buyer’s Market, LLC. She may be reached at jessica@buyeragentct.com.