Vendor Portal
The final walkthrough is a vital step in any real estate transaction, serving as the buyer's last chance to inspect the property before closing. As emphasized by Chance Badertscher, this walkthrough is not just a formality; it’s an essential safeguard for buyers to confirm that the property is in the condition agreed upon in the contract. It's also an opportunity to ensure that all repairs negotiated during the attorney review period have been properly completed.
Key Areas to Inspect
During the final walkthrough, several key areas should be thoroughly inspected:
Check All Appliances and Major Systems: Buyers should ensure that all appliances, heating, cooling, plumbing, and electrical systems are fully operational. Chance advises paying special attention to seasonality issues, such as checking heating systems during colder months or air conditioning units in warmer weather, as these may not have been thoroughly inspected previously.
Look for Major Issues, Not Minor Flaws: The speakers caution buyers against nitpicking minor cosmetic issues during the walkthrough. Instead, the focus should be on identifying any major problems that could delay or derail the closing. For example, significant water damage, non-functional utilities, or uncompleted repairs are valid concerns that should be addressed before finalizing the purchase.
Managing Expectations and Responsibilities
A significant portion of the discussion revolves around managing expectations and responsibilities between buyers and sellers:
Ensure All Keys Are Accounted For: One often-overlooked detail is ensuring that all keys are present. The seller is responsible for providing keys to every room, storage area, and garage. Missing keys can lead to unnecessary complications on the day of closing.
Utility Transfers and Cleanliness: Sellers should ensure that all utilities are turned on and that the property is left in a clean condition. Any leftover items should be removed to avoid inconveniencing the buyer.
Address Repairs Through Escrow Holdbacks: If certain repairs have not been completed by the time of the final walkthrough, Chance suggests putting those repairs into an escrow holdback. This ensures that funds are reserved to complete the repairs post-closing, protecting the buyer from unexpected expenses.
The Importance of Access and Documentation
Access issues can become a significant hurdle during the final walkthrough, and Chance highlights the importance of ensuring that access is granted during the attorney review period to prevent potential conflicts. He shares his experience dealing with access problems and stresses the importance of documenting any issues that arise during the walkthrough, no matter how minor they may seem.
Document Everything: Even something as small as a garbage bag left behind should be documented with photos. This evidence can be crucial if any disputes arise regarding the property's condition at closing.
Final Thoughts from the Episode
Mark and Tom wrap up the episode with a reminder of the value of the final walkthrough as a protective measure for buyers. They stress that skipping this step could lead to unexpected problems post-closing, underscoring the importance of being thorough and vigilant during the process.
Watch Straight Up Chicago Investor Podcast Episode 282 in Full Here
Show Notes:
What should I expect on the final walk-through from both the buyer and seller side?
Connect with Mark and Tom: StraightUpChicagoInvestor.com
Email the Show: StraightUpChicagoInvestor@gmail.com
Guest: Chance Badertscher, Lavelle Law
Link: Build Your Team | Straight Up Chicago Investor Podcast
Chicago Investor Resources Shared
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Survival Guide For Self Managers - 15 Tips Chicago Landlords Must Know(Especially House Hackers)
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