The final Walk-through
It had been six months since the buyer’s offer was first accepted. After five addendums and four contract extensions, the buyers were finally going to sign their loan documents and close on my longest escrow of the millennium. The day before signing, the selling agent called me to let me know that the buyers were going to do their final walk-through inspection. Since this escrow had gone on for months, I sarcastically wondered if the buyers and their agent remembered where the house was located or would they need directions. A buyer’s final walk-though, immediately prior to the close of escrow, can be full of uncertainties. Once the furniture and room decorations have been removed, a once inviting comfortable home can look more like a mini-warehouse. I feared the worst.
When the buyers had made their initial offer, contingent upon the sale of their house, there were still leaves on the trees, apples in the orchard and kids splashing around in the pool. Now the house, orchard and pool were deserted and dead leaves covered the driveway and decks. Whether occupied or vacant, most sellers begin to mentally check- out of their home once an escrow is opened. Preparing a home for market requires a strong financial and mental commitment. Once sellers achieved the goal of selling the home, they begin to loose interest in keeping the house in the same pristine condition that initially attracted the buyer. There are a number of things that can go wrong during an escrow and the final walk-through prior to closing shouldn’t be one of them.
The primary purpose of the buyer’s final walk-through is to insure that the property is in substantially the same condition as when the buyer’s offer was accepted. It’s also to insure that any agreed upon repairs or replacements have been completed. But like many things in life, a simple technical procedure can be misinterpreted. Definitions such as: “clean”, “substantially”, “customary”, “all debris” and “as agreed” can take on entirely new creative meanings to the different interested parties.
Buyers and sellers sometimes have different expectations at the final walk-through. Sellers may think of the final walk-through as the conclusion to a long arduous ordeal while some buyers mistakenly believe that a walk-through is another opportunity to create a new punch-list of items they expect the seller to repair or replace. The best defense for these false expectations is a good offense. Agents should clearly explain to their clients what is to be expected within the parameters of the purchase contract prior to the appointment. .
Many sellers, who have already conceded to a buyer’s demand regarding the purchase price, inspections and subsequent repairs or replacements are prematurely anxious to put the old house behind them and move on with their lives. Keeping the seller involved with the continued daily upkeep is necessary. I have witnessed many deals nearly unravel prior to closing because sellers failed to maintain a vacant home. Utilities should be left on and thermostats set to prevent pipes from freezing. Pools still need to be cleaned and landscaping maintained. All vacant homes should be inspected weekly to insure no surprises at the walk-through inspection. Buyers will often drive by their new home while in escrow. It should retain the same look through closing. A deteriorating property will weaken an escrow.
Some agents still believe in keeping the buyer and sellers at a distance but I find it especially beneficial at a final walk-through to have all parties together. There are many small issues that are never written down in a purchase contract, listing agreement or property flyer concerning: keys, neighbors, school bus stops, mail delivery, utility companies, pool and yard maintenance people, auto sprinkler control, forwarded mail and many questions about the neighborhood or house that will be helpful in getting the buyers settled quickly. Our current market lends itself to creating adversarial relationships. When buyers and sellers have an opportunity to meet and personally discuss their common interest, their home, perceived animosities diminish. If questions about the home arise after closing, sellers have a tendency to be more helpful if they have personally met with the new buyers.
I believe the buyer’s final walk-through is as critical as their initial previewing appointment. It’s usually the buyer’s last chance to stop the closing from moving forward. It’s probably their only property and neighborhood orientation from the person who knows the property the best, the former owner. Once successfully completed, all parties usually experience a sigh of relief and begin to look forward to the final closing and moving.
When the buyers had made their initial offer, contingent upon the sale of their house, there were still leaves on the trees, apples in the orchard and kids splashing around in the pool. Now the house, orchard and pool were deserted and dead leaves covered the driveway and decks. Whether occupied or vacant, most sellers begin to mentally check- out of their home once an escrow is opened. Preparing a home for market requires a strong financial and mental commitment. Once sellers achieved the goal of selling the home, they begin to loose interest in keeping the house in the same pristine condition that initially attracted the buyer. There are a number of things that can go wrong during an escrow and the final walk-through prior to closing shouldn’t be one of them.
The primary purpose of the buyer’s final walk-through is to insure that the property is in substantially the same condition as when the buyer’s offer was accepted. It’s also to insure that any agreed upon repairs or replacements have been completed. But like many things in life, a simple technical procedure can be misinterpreted. Definitions such as: “clean”, “substantially”, “customary”, “all debris” and “as agreed” can take on entirely new creative meanings to the different interested parties.
Buyers and sellers sometimes have different expectations at the final walk-through. Sellers may think of the final walk-through as the conclusion to a long arduous ordeal while some buyers mistakenly believe that a walk-through is another opportunity to create a new punch-list of items they expect the seller to repair or replace. The best defense for these false expectations is a good offense. Agents should clearly explain to their clients what is to be expected within the parameters of the purchase contract prior to the appointment. .
Many sellers, who have already conceded to a buyer’s demand regarding the purchase price, inspections and subsequent repairs or replacements are prematurely anxious to put the old house behind them and move on with their lives. Keeping the seller involved with the continued daily upkeep is necessary. I have witnessed many deals nearly unravel prior to closing because sellers failed to maintain a vacant home. Utilities should be left on and thermostats set to prevent pipes from freezing. Pools still need to be cleaned and landscaping maintained. All vacant homes should be inspected weekly to insure no surprises at the walk-through inspection. Buyers will often drive by their new home while in escrow. It should retain the same look through closing. A deteriorating property will weaken an escrow.
Some agents still believe in keeping the buyer and sellers at a distance but I find it especially beneficial at a final walk-through to have all parties together. There are many small issues that are never written down in a purchase contract, listing agreement or property flyer concerning: keys, neighbors, school bus stops, mail delivery, utility companies, pool and yard maintenance people, auto sprinkler control, forwarded mail and many questions about the neighborhood or house that will be helpful in getting the buyers settled quickly. Our current market lends itself to creating adversarial relationships. When buyers and sellers have an opportunity to meet and personally discuss their common interest, their home, perceived animosities diminish. If questions about the home arise after closing, sellers have a tendency to be more helpful if they have personally met with the new buyers.
I believe the buyer’s final walk-through is as critical as their initial previewing appointment. It’s usually the buyer’s last chance to stop the closing from moving forward. It’s probably their only property and neighborhood orientation from the person who knows the property the best, the former owner. Once successfully completed, all parties usually experience a sigh of relief and begin to look forward to the final closing and moving.
posted by Ken Calhoon at 7:46 AM
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