Walkthrough - What's it for, anyway?

Real Estate

 The contracts are signed, the loan is approved and you're headed to the closing table! All that's left is the walk though and the official signing. But what's the walk through? 

The walk through is the buyers last chance to make sure the property is in substantially the same condiiton on the day of closing as it was at the Inspection. Learn it's purpose, how to prep for it and what to do if there's a problem. 

Check out this paragraph from the Purchase and Sales Agreement (single family home) from the Rhode Island Association of Realtors. 

 "Buyer shall be entitled to a final walkthrough of the Property prior to the delivery of the deed in order to determine whether the Property complies with the terms of this section. "

That's not a lot of information, is it? This blog will help you understand what you should be expecting from your Real Estate Agent or Broker and the Seller in last visit to your property before the closing date. 

The Purpose of the Walk Through  

Movers Cartoon


 There is often a substantial amount of time between the Inspection date for the property and the date that all the documents are signed and the deed is recorded (the "Closing"). A lot can happen in that period of time. 

The sellers' movers can cause damage during the move; an investment property may have tenants that don't leave the place clean or actually take things that should be conveyed (yes, dishwasher's have been magically disappeared in this time period),  or in one memorable instance the seller left the house in filthy conditions. It can be as innocuous as the giant couch the seller couldn't get out the door and left for the buyer to handle, or as problematic as a windstorm taking a tree down and depositing it on the property the night before closing! 

The final walkthrough is the buyers LAST chance to be sure that when closing is complete there are as few surprises as possible. 


Prepare Yourself for an Effective Walkthrough

A good walk through can take as little as 10 minutes or as long as an hour. It depends on the size of the house, how much furniture was in the house when you purchased it, how many repairs or corrections were requested and how many items you decide to check. 

While this is not your opportunity to perform another inspection, it is your chance to make sure the major mechanicals are all still functioning properly and the moving parts are all still moving smoothly. Think windows and doors, heat and A/C, tubs, toilets and faucets. 

With the new TRID rules that came into effect October 2015 there is a school of thought saying inspections should occur at least three days before closing. The idea is that if there is a substantial issue that requires funds be held in escrow or some other negotiation that will affect the final numbers on the HUD or Settlement statement, you need the three day cushion in order to comply with the disclosure rules and not delay your closing unnecessarily. 

The flip side of this argument is that you want to inspect your house as close to the closing date as possible so that you have a very small window between the last time you saw the property and when you signed your documents. In our market, Newport and Rhode Island in general, it's more common to schedule the walk through either the day of closing or the day immediately prior if time requires. 

Bring a copy of your Purchase & Sales Agreement with you, along with any Repair Requests or Addendum. You can ask your agent to bring everything if you signed electronically as many do now.  This will help remind you of any requests for repairs that were made and any agreements. 

It's too late now to request any items that were on the Inspection Report but not negotiated as part of the Repair Request. 


Woman with Clipboard 


Start outside. Check the mailbox and make sure there are no keys or other odds ands. The seller may not have remember to submit an address forwarding request. Check for any pink flamingos or lawn furniture you didn't want to convey. 

Look for broken windows or doors, or damage to a garage or driveway from moving trucks. Were any utilities boxes broken off the side of the house during the move? 

Check to make sure all the garage door openers, any keys for padlocks on sheds or outside doors or mailboxes, any keys or remotes or gas fireplaces, collars for invisible dog fences or other items that should convey. It can be tough to get these items after the documents are signed. 



Remedy for Problems

The most common solution to a problem is to request funds to be held in escrow until such time as the Seller corrects a problem. You can also use those funds to compensate yourself for correcting a problem. This is a matter of expression that intent to your agent. An experienced agent will likely already be thinking along these lines if there are problems that warrant this solution. An experienced agent will also be able to guide you if they think the problem doesn't warrant that solution. 

For example, the house mentioned above that was so filthy? It cost $900+ to have it thoroughly cleaned, it was that bad.  The buying agent can tell the listing agent that the closing will be delayed until such time as the seller cleans the house or until the Buyer hires appropriate vendors to clean on the seller's behalf. 

If you have a REAL big problem (a tree fell on the house, the pipes burst and the house is flooded, a car ran through the living room) the appropriate action is to delay closing until a suitable remedy is found. In extreme cases, you may be able to declare the contract void if the house cannot be returned to the state in which it was at contract.