Exciting times! You’ve just bought or sold your home and now you need to prepare before the closing day. There’s likely a wide range of emotions from excitement to pure panic! But, it can also be a complex process with many moving parts.

The period before you close on a house is crucial for ensuring that everything is in order and that you’re not scrambling at the last minute.

Here’s a comprehensive guide to the key steps you should consider before closing on your new home, or on a home that you have just sold (or both!)

What is the closing day?

Also known as the “completion date”, closing day is the day that the property you’ve purchased or sold is transferred from one owner to the next. It’s the day when the previous owner hands over the keys to you.

1. Stop your utilities and other address specific services

In Guelph, we’re lucky that it’s pretty straightforward with utilities. We’ve put together a whole list of utilities in Guelph that you need to notify before the closing day. As well, the direct contact information for all.

On top of utilities, you should consider other items such as:

  • notifying companies of any rental items (hot water heater is a common one)
  • your internet/ phone provider
  • Canada Post to ensure all your mail is re-directed
  • Order a lot from Amazon or other online services? Be sure to change your address here, we see parcels delivered to the old address all the time!

2. Get a lawyer

In almost all cases, you need to ensure you have a lawyer represent you. This could be as the buyer, or seller, or to do both transactions. Depending on your closing date, the lawyer may not be in touch with you for a while. However, it’s worth getting sorted out once your home is firm and binding deal (without conditions).

As Guelph real estate agents, we deal with a lot of Guelph lawyers. As a result, we have created a post that provides some our personally recommended lawyers. Of course, there are many so you could also get recommendations from friends, family or your real estate agent.

Selling a home costs less than buying a home when working with a lawyer. This is because there is less paperwork and admin (and therefore less time) spent on the file for a purchase. Although prices vary, expect to pay roughly $3000 for a purchase and $2000 for a sale. These costs are solely the legal costs and don’t include other fees/ expenses that may come up for the specific property.

3. Get your finances sorted out

Most people require a mortgage to purchase a home. If this is you, you’ll need to ensure that:

  • Your lender has all the proper documents: Although this can vary, you’ll typically need to provide a copy of the Purchase and Sale Agreement (APS) and the MLS file for the property
  • Don’t do anything unusual! We’ve heard stories from people who buy a new house and to celebrate, also buy a new car! (bad idea). Don’t do anything that will negatively impact your credit before you close on your new home. Do it after the house closes!
  • Confirming Your Down Payment: Verify that your down payment funds are ready and that there are no last-minute issues with your bank or lender.
  • Locking in Your Rate: If you haven’t already, you might want to lock in your interest rate to avoid fluctuations in the market.

One of the other major components of financing is a home appraisal. This is when the lender sends out a 3rd party appraiser to value the home. The appraiser is going to view the home (most likely in person) to ensure that the value you paid for it is market value. In 90% of cases, it will be. But during the frenzy of 2022, buyers often paid far over market value. You can read all about the home appraisal process in this popular blog.

This appraisal visit is usually in addition to any scheduled buyer walkthroughs or visits (next point below)

4. Utilizing your buyer walkthroughs and/ or buyer visits

Typically, in your agreement your REALTOR® will schedule extra visits before your closing date. You can use these after the deal is firm, but before the closing date. There is no set number of visits, it’s more about your own needs and what has been negotiated.

Maybe you don’t care to go back before closing? Or, maybe you are doing major renovations and need more visits? In this case, you’ll want to be able to visit 4 more times to line up contractors after the closing? Or maybe it’s your first house and you just want to check it out a few more times. The standard number of visits before closing is usually 2-3 and these are usually 1 hour visits.

One of these visits should be a final walkthrough. This is your last chance to inspect the property before closing. Ideally, it should be done as close to the closing date as possible.

Things to look for on a final walkthrough

  • The Property Is in Agreed upon Condition: Check that the home is in the same condition as when you made the offer.
  • Ensure that any agreed-upon repairs have been completed: if you negotiated that the heater in the garage would be working before closing, ensure that it is indeed working. If not, ensure you advise your lawyer right away
  • All Fixtures and Appliances Are in Place: Verify that all items included in the sale are present and functional. Also ensure that they are the same ones that you saw when you first visited the house!
  • Check for Any New Issues: Look for any new damage or problems that may have arisen since your last visit. Sometimes, a seller can damage walls when moving out

5. Organizing movers

Although sometimes people choose to move themselves, it’s quite likely that it’s money well spent to hire movers. This way, you can focus on other closing related tasks.

Movers can do anything from packing, moving and arranging furniture, to simply moving. Some movers even store items for you! This helps in the transition from selling your old home to moving into your new home on the closing date.

We’d suggest you meet with a few movers who have good reputations. This way, you’ll get an idea of their process, their costs and timelines. We’ve put together a list of Guelph movers that our clients have liked best.

4. Ensure you have insurance in place

It’s a good idea to ensure that you can get home insurance before you close. It may be worthwhile to contact an insurance broker if your property is unique. Insurance brokers have access to a variety of insurers that can offer competitive rates.

If you’re selling and not buying, you simply have to let your insurance company you’re moving. They’ll end the insurance on the day of closing.

Your insurance should be effective on the day of closing to protect your new property. Your lawyer is going to require a copy of the policy to ensure that the property is covered. Additionally, review your policy to understand what is covered and what is not. Not all insurance coverage is the same!

Insurance can cover liability coverage, property damage, and any additional coverages you may need. For example, if you live in an older area with mature trees, you can get fallen tree coverage. You can also get coverage for things like sewer backup, contents insurance and other unique coverage. If you have insurance for multiple items (home + auto) with the same company, you may get a further discount.

Have more questions about the process?

Still unsure about some of the home buying or selling process? Get in touch with Beth and Ryan Waller, Guelph Realtors to book an appointment