Pre settlement walk through
The pre-settlement walk through is the last check a buyer makes on the home before going to settlement, signing papers and handing the money. The pre settlement walk through is also sometimes referred to as the final inspection although it is usually not done with an inspector. It is a very important step for both the buyer and the seller before going to closing.
In case you were the buyer: before going to settlement you need to structure your tour in the home to cover all items under the contract and any items needed to be fixed. In practice, you or your Realtor should have the contract, any addenda signed after including the home inspections, the results of the home inspection and any addenda agreed on whether it was items to fix or money in lieu of fixing. The goal is to make sure that there is no substantial difference between the time you did the inspection and that moment before you are handed the home. If you never had an inspection, then the home should not be substantially different from the time of the contract acceptance.
Of course all of us understand that as people are moving out of a home, there will be minor scratches in the walls. What you shouldn’t expect to see is a new leakage, plumbing that doesn’t work, heating problems, a stove or oven that doesn’t heat, broken windows or washer or dryer that do not work. Basically, all the plumbing, heating, mechanic devices in the home should be operational. Most contracts will have a paragraph stating that at the time of the walk through the seller should have the utilities connected and operating.
So what if you find something that you can’t test… for example the dish washer because the water is not available? The simplest way is to hold an escrow with the settlement company for the value of a dishwasher - say $500. You can test the dishwasher later on, if it works then you just inform the settlement company to release the escrow.
In case you were the seller: You will need to do exactly the same in terms of having the contract and all the addenda. You should also keep with you a list of handymen to call in case something came up that were broken. Those should include a plumber and an HVAC. There’s a set of things that you should not do, and those include: don’t turn off the heat to save. At the day of the final walk through the buyer needs to see that the heating and cooling equipment are working. The same goes to the electric and water. Inform the utilities companies with the last day you’ll own the property but don’t disconnect the utilities.
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