Closing the Sale in Real Estate

At closing, specify how long you will need to remove your belongings from the house. If necessary, have a rider or memo of understanding attached to the sale documents stating how many days you will need. And be sure the buyer initials it in agreement.

All closings in California are handled through an escrow account. You, as the seller, will place your home’s deed into escrow while the buyer place all funds needed to purchase the home into escrow. The escrow holder, usually a title company, will generate all the documents needed for closing, and once you and the buyer agree, will distribute all funds.

It is the agent’s responsibility to make sure that all documents needed for closing are complete and correct. Ask the agent to have those documents ready at least one or two days in advance and to review them with you to insure they are correct. Remember, if there is a mistake, it will delay the closing, and there are innumerable instances of buyers backing out at closing because the time needed to fix the error gave them time to think about the purchase.

A word about commissions: ask each realty firm you interview what their commission will be. Most charge 6% of the closing price. You can negotiate for a lower rate with some firms, but you may get less attention and reduced efforts on the agent’s part because of the lowered commission.

All expenses for marketing your home come out of that commission, unless otherwise agreed upon. The agent and the realty firm split the commission, and if there’s a buyer’s agent involved, the entire 6% commission is split equally between the firms and their agents. You may want to try selling your home yourself first, or use one of the cost-plus selling services before you retain a realty firm.