Final Walkthrough Checklist Before Closing a Real Estate Deal
Final Walkthrough Checklist: Ensuring a Smooth Closing
Congratulations! You’re nearing the final stages of buying or selling a home. The final walkthrough is a crucial step in the process, providing you with the opportunity to ensure that the property is in the condition you agreed upon in the purchase agreement. This comprehensive checklist will guide you through the process, helping you identify any potential issues and ensuring a smooth closing. Remember, this isn’t a substitute for a professional home inspection, which should have been completed earlier in the process. The final walkthrough is about verifying that agreed-upon repairs have been made and that the property is in the expected condition.
What is a Final Walkthrough and Why is it Important?
The final walkthrough is your last chance to inspect the property before officially taking ownership or relinquishing it. It’s typically conducted within a few days of closing, allowing you to confirm that the seller has met their obligations as outlined in the purchase agreement. This includes verifying that repairs have been completed, that agreed-upon items are present, and that the property is in the condition it was represented to be. Failing to conduct a thorough final walkthrough can lead to costly surprises after closing, as you may be responsible for addressing issues that should have been resolved by the seller.
For buyers, the final walkthrough provides peace of mind and ensures that you’re getting what you paid for. It allows you to identify any last-minute problems and address them before closing, potentially saving you thousands of dollars in repair costs. For sellers, it’s an opportunity to demonstrate good faith and ensure a smooth transaction. By addressing any outstanding issues proactively, you can avoid potential disputes and delays in the closing process.
When to Schedule Your Final Walkthrough
Ideally, you should schedule your final walkthrough within 24 to 72 hours of the closing date. This allows ample time to address any issues that may arise during the inspection. Coordinate with your real estate agent and the seller (or their agent) to find a time that works for everyone involved. Consider scheduling it during daylight hours, as natural light will allow you to more easily identify potential problems. Avoid scheduling it too close to the closing date, as this may not leave enough time to resolve any issues that are discovered.
If possible, try to schedule the walkthrough after the seller has moved out and the property is completely empty. This will give you a clearer view of the property and allow you to inspect all areas without obstruction. If the seller is still in the process of moving out, be patient and understanding, but be sure to thoroughly inspect all areas as they become available.
Who Should Attend the Final Walkthrough?
The following individuals should ideally attend the final walkthrough:
- The Buyer(s): This is essential, as you are the one taking ownership of the property.
- The Buyer’s Real Estate Agent: Your agent can provide valuable assistance and guidance, helping you identify potential issues and navigate the process.
- The Seller(s) (Optional): While not always necessary, the seller (or their agent) may be present to answer questions and address any concerns.
- A Home Inspector (Optional): If you have specific concerns or uncertainties, you may consider hiring a home inspector to accompany you during the walkthrough. This is particularly helpful if you lack experience or knowledge in home maintenance and repair.
Having the right people present will ensure a more thorough and productive walkthrough, helping you identify and address any potential issues before closing.
Preparing for Your Final Walkthrough: A Detailed Checklist
To ensure a comprehensive and effective final walkthrough, it’s essential to come prepared. Here’s a detailed checklist to guide you through the process:
1. Review the Purchase Agreement and Inspection Report
Before the walkthrough, carefully review the purchase agreement, particularly the sections that outline the seller’s responsibilities, such as required repairs or included items. Also, revisit the home inspection report to refresh your memory on any identified issues. This will help you focus your attention on areas of concern and ensure that the seller has addressed them adequately.
2. Gather Essential Tools and Supplies
Bring the following tools and supplies to the walkthrough:
- A copy of the purchase agreement and inspection report: These documents will serve as your reference guide during the inspection.
- A notepad and pen: To take notes and document any issues you find.
- A camera or smartphone: To take pictures or videos of any problems.
- A flashlight: To inspect dark areas, such as closets, attics, and basements.
- A measuring tape: To verify dimensions and measurements.
- A phone charger: To test electrical outlets.
- A small appliance (e.g., a hairdryer): To test electrical outlets under load.
Having these tools on hand will allow you to thoroughly inspect the property and document any issues you encounter.
3. Check for Agreed-Upon Repairs
This is a primary focus of the final walkthrough. Carefully inspect all areas where repairs were required, as outlined in the purchase agreement or addenda. Look for evidence that the repairs were completed professionally and to your satisfaction. If you’re unsure about the quality of the repairs, consider asking a qualified professional to assess them.
Specifically, check the following:
- Review repair receipts and warranties: Ask the seller to provide documentation for all completed repairs, including receipts and warranties.
- Inspect the repaired areas closely: Look for any signs of shoddy workmanship or incomplete repairs.
- Test the repaired systems or components: If the repairs involved plumbing, electrical, or HVAC systems, test them to ensure they are functioning properly.
If you find any issues with the completed repairs, address them with the seller immediately and negotiate a resolution before closing.
4. Verify Included Items
The purchase agreement should specify which items are included in the sale, such as appliances, fixtures, window treatments, and landscaping features. Verify that all these items are present and in good working condition. If any items are missing or damaged, address this with the seller before closing.
Specifically, check the following:
- Review the list of included items in the purchase agreement: Make a list of all the items that should be present.
- Inspect each item to ensure it is present and in good condition: Test appliances, check fixtures for damage, and verify that window treatments are intact.
- Document any missing or damaged items: Take pictures and notes of any discrepancies.
Addressing these discrepancies before closing can prevent disputes and ensure that you receive everything you paid for.
5. Inspect the Interior
Conduct a thorough inspection of the interior of the property, paying close attention to the following areas:
a. Walls, Ceilings, and Floors
Look for any signs of damage, such as cracks, stains, water damage, or mold. Pay particular attention to areas where leaks may have occurred in the past. Also, check the condition of the paint and wallpaper, and note any areas that need touch-ups.
Specifically, check the following:
- Cracks: Look for cracks in walls, ceilings, and floors, especially around windows and doors.
- Stains: Check for water stains on ceilings and walls, which may indicate leaks.
- Water damage: Look for signs of water damage, such as peeling paint, bubbling wallpaper, or discoloration.
- Mold: Be vigilant for any signs of mold, which can be a serious health hazard.
- Paint and wallpaper: Check the condition of the paint and wallpaper, and note any areas that need touch-ups.
b. Doors and Windows
Open and close all doors and windows to ensure they operate smoothly. Check for any signs of damage, such as cracks, broken glass, or damaged frames. Also, check the weather stripping and caulking to ensure they are intact and providing a proper seal.
Specifically, check the following:
- Operation: Open and close all doors and windows to ensure they operate smoothly.
- Damage: Check for any signs of damage, such as cracks, broken glass, or damaged frames.
- Weather stripping and caulking: Check the weather stripping and caulking to ensure they are intact and providing a proper seal.
c. Kitchen
Thoroughly inspect the kitchen, paying close attention to the following:
- Appliances: Test all appliances, including the refrigerator, oven, stove, dishwasher, and microwave. Ensure they are functioning properly and that all components are in good working order.
- Cabinets and countertops: Check for any signs of damage, such as scratches, dents, or water damage.
- Sinks and faucets: Check for leaks and ensure that the hot and cold water are functioning properly.
- Garbage disposal: Test the garbage disposal to ensure it is working properly.
d. Bathrooms
Thoroughly inspect the bathrooms, paying close attention to the following:
- Toilets: Flush all toilets to ensure they are flushing properly and that there are no leaks.
- Sinks and faucets: Check for leaks and ensure that the hot and cold water are functioning properly.
- Showers and tubs: Check for leaks and ensure that the showerhead and faucet are functioning properly.
- Ventilation: Test the bathroom fan to ensure it is working properly and providing adequate ventilation.
e. Electrical System
Check the electrical system by testing all outlets and switches. Use a phone charger or small appliance to test each outlet. Also, check the circuit breaker panel to ensure that all breakers are properly labeled.
Specifically, check the following:
- Outlets: Test all outlets to ensure they are working properly.
- Switches: Test all switches to ensure they are controlling the correct lights and fixtures.
- Circuit breaker panel: Check the circuit breaker panel to ensure that all breakers are properly labeled.
f. Plumbing System
Check the plumbing system by running water in all sinks, toilets, showers, and tubs. Look for any signs of leaks or drips. Also, check the water pressure to ensure it is adequate.
Specifically, check the following:
- Leaks: Look for any signs of leaks or drips under sinks, toilets, showers, and tubs.
- Water pressure: Check the water pressure to ensure it is adequate.
- Drainage: Ensure that all drains are draining properly and that there are no clogs.
g. HVAC System
Test the heating and cooling systems to ensure they are functioning properly. Turn on the heat and air conditioning and allow them to run for a few minutes to ensure they are producing the desired temperature. Also, check the air filters to ensure they are clean.
Specifically, check the following:
- Heating: Turn on the heat and allow it to run for a few minutes to ensure it is producing heat.
- Cooling: Turn on the air conditioning and allow it to run for a few minutes to ensure it is producing cold air.
- Air filters: Check the air filters to ensure they are clean.
6. Inspect the Exterior
Conduct a thorough inspection of the exterior of the property, paying close attention to the following areas:
a. Roof
Visually inspect the roof for any signs of damage, such as missing shingles, cracks, or leaks. If possible, use binoculars to get a closer look. If you have any concerns about the roof’s condition, consider hiring a professional roofer to conduct a more thorough inspection.
Specifically, check the following:
- Missing shingles: Look for any missing shingles.
- Cracks: Check for cracks in the shingles or roof tiles.
- Leaks: Look for any signs of leaks, such as water stains or discoloration.
b. Gutters and Downspouts
Check the gutters and downspouts to ensure they are clean and free of debris. Also, check for any signs of damage, such as cracks or leaks. Ensure that the downspouts are properly diverting water away from the foundation.
Specifically, check the following:
- Cleanliness: Ensure that the gutters and downspouts are clean and free of debris.
- Damage: Check for any signs of damage, such as cracks or leaks.
- Diversion: Ensure that the downspouts are properly diverting water away from the foundation.
c. Foundation
Inspect the foundation for any signs of cracks, settling, or water damage. Pay particular attention to areas where the ground slopes towards the foundation. If you have any concerns about the foundation’s condition, consider hiring a structural engineer to conduct a more thorough inspection.
Specifically, check the following:
- Cracks: Look for any signs of cracks in the foundation.
- Settling: Look for any signs of settling, such as uneven floors or doors that stick.
- Water damage: Look for any signs of water damage, such as stains or discoloration.
d. Landscaping
Check the landscaping to ensure it is in good condition. Look for any signs of dead or dying plants, overgrown vegetation, or drainage problems. Also, check the condition of any fences, decks, or patios.
Specifically, check the following:
- Plants: Look for any signs of dead or dying plants.
- Vegetation: Check for any overgrown vegetation.
- Drainage: Look for any drainage problems.
- Fences, decks, and patios: Check the condition of any fences, decks, or patios.
e. Garage
Inspect the garage, checking the garage door opener, the walls, and the floor. Ensure the garage door opens and closes smoothly. Look for any signs of leaks or water damage.
Specifically, check the following:
- Garage door opener: Test the garage door opener to ensure it is working properly.
- Walls: Look for any signs of leaks or water damage on the walls.
- Floor: Check the floor for any cracks or damage.
7. Check Utilities
Confirm that all utilities are turned on and functioning properly. This includes electricity, gas, water, and sewer. Check the water heater to ensure it is functioning properly.
Specifically, check the following:
- Electricity: Confirm that the electricity is turned on.
- Gas: Confirm that the gas is turned on.
- Water: Confirm that the water is turned on.
- Sewer: Confirm that the sewer is functioning properly.
- Water heater: Check the water heater to ensure it is functioning properly.
Addressing Issues Discovered During the Final Walkthrough
If you discover any issues during the final walkthrough, it’s crucial to address them promptly and effectively. Here’s a step-by-step approach:
1. Document the Issues
Thoroughly document any issues you find, taking detailed notes and photographs or videos. This will provide a clear record of the problems and help support your case when negotiating with the seller.
2. Contact Your Real Estate Agent
Contact your real estate agent immediately and inform them of the issues you’ve discovered. Your agent will provide guidance and assistance in navigating the situation and negotiating a resolution with the seller.
3. Negotiate a Resolution
Work with your real estate agent to negotiate a resolution with the seller. Possible resolutions include:
- Seller Completes Repairs: The seller agrees to complete the necessary repairs before closing.
- Escrow Holdback: An agreed-upon amount of money is held in escrow to cover the cost of repairs after closing.
- Price Reduction: The purchase price is reduced to reflect the cost of the necessary repairs.
- Buyer Completes Repairs: The buyer agrees to complete the repairs after closing, and the seller provides compensation.
The best resolution will depend on the specific issues and the willingness of both parties to compromise.
4. Amend the Purchase Agreement
Once you’ve reached an agreement with the seller, be sure to amend the purchase agreement to reflect the agreed-upon resolution. This will provide legal protection and ensure that both parties are bound by the terms of the agreement.
5. Re-Inspect (If Necessary)
If the seller agrees to complete repairs before closing, schedule a re-inspection to verify that the repairs have been completed satisfactorily. If the repairs are not completed to your satisfaction, you may need to renegotiate the resolution or consider other options.
Potential Red Flags to Watch Out For
While conducting your final walkthrough, be particularly vigilant for the following red flags:
- Evidence of New Damage: Look for any signs of new damage that were not present during the initial inspection, such as cracks, leaks, or water damage.
- Uncompleted Repairs: Ensure that all agreed-upon repairs have been completed satisfactorily.
- Missing Items: Verify that all included items are present and in good working condition.
- Utilities Not Turned On: Confirm that all utilities are turned on and functioning properly.
- Changes to the Property: Be aware of any changes to the property that were not agreed upon, such as removal of fixtures or landscaping features.
If you encounter any of these red flags, address them with your real estate agent immediately and negotiate a resolution with the seller.
Final Thoughts
The final walkthrough is a critical step in the home buying or selling process. By following this comprehensive checklist and paying close attention to detail, you can ensure a smooth and successful closing. Remember to communicate openly with your real estate agent and the seller, and don’t hesitate to ask questions or voice any concerns you may have. With careful planning and preparation, you can confidently navigate the final walkthrough and move forward with the closing process.
This checklist provides a thorough guide, but always tailor it to your specific circumstances and the details of your purchase agreement. Good luck with your closing!