One of the many activities at a real estate closing is a final walk-through of the home. This is your last chance to look at the home before it officially becomes yours.
The final walk-through is usually a mere formality, taking no more than an hour, depending on the size of the home. It is done within 24 hours prior to closing and it is your chance to confirm the previous owners have thoroughly moved out and that agreed-upon repairs have been made.
Take the final walk-through seriously
It is important to be just as thorough during the final walk-through as you were during any previous inspections. Check appliances, run water and ensure doors, windows and other fixtures work properly.
Sometimes the walk-through results in the discovery of a new issue or problem that was missed on previous inspections or walk-throughs.
You likely do not want to cancel the real estate sale entirely. Here are some tips on what you can do in this situation.
Tell your realtor immediately
Your realtor may even be with you at the final walk-through. They have likely encountered these types of situations before and will know how to address the issue. Listen to your realtor and follow their advice.
Do not panic. A problem during the final walk-through usually does not mean that the transaction can never be completed and that you will lose out on your home.
However, you may need to reschedule your closing for a day or two until the problem is corrected. Do not close before that. You should not sign the closing documents until the problem is fixed. Although you could potentially resolve the problem after the closing is done, this is not a guarantee, and the process will likely be more complicated.
Often, the solution is to hold money that was going to be transferred at closing in escrow until the problem is corrected.
Renegotiate your contract
This might mean renegotiating the terms of your sales contract. The seller could agree to fix and pay for the problem within a certain time or you could agree to split the costs. If the problem is something that cannot be fixed, you could negotiate a lower sale price for the home.
Although a problem during a walk-through does not mean you cannot complete the sale, it is an option if you choose. This usually means a lose-lose scenario for you and the buyer, but it remains an option until the closing is complete.
When you choose to not go through with the sale, you should receive any up front or “earnest” money you already paid.
Initiate legal action
In a worst-case scenario, you may need to resort to legal action. This could occur if the problem is something that the seller agreed to repair and is now refusing to repair, going against the terms of your sales contract.
Real estate litigation can be costly and time-consuming, potentially delaying the date you move into your new home. This can feel disheartening and frustrating. But sometimes this is the best choice if you want to hold a seller accountable for their obligations in a real estate contract.