Cash at Closing

Here's a good Miami real estate closing tip: if you find a problem with your Miami property, don't ask the seller to fix it, ask for cash at closing. You may think you want the seller to repair the roof, replace the boiler or have the floors refinished, but in reality, that doesn't make a lot of sense.

Not only could it delay your closing date, but your seller wants out of this home so how much effort are they going to make towards getting the best service or highest quality replacement?

If you have cold hard cash in hand from the closing, you can make sure you buy the appliance you want, hire the contractor you trust or you can be secure in the repair that you made yourself. Not only will a negotiation like this mean a faster closing, but you'll have the peace of mind that the problem won't come back to haunt you in six months or a year.

Real Estate Closing Delays and Miami

Closing on Miami Real Estate

Miami Real Estate Closing: The Seller

When you are under contract and ready to sit at the closing table, you should really know your responsibilities and be prepared. The seller in a Miami real estate transaction is responsible for:

1. Clearing the Title - This means the seller must make sure the property is free of any encumbrances prior to closing. This can include, mortgages, second mortgages, liens, judgements or any issues with the "Chain of Title."
2. They are responsible for leaving the house in broom clean condition and in meeting any conditions set out by the Purchase and Sale agreement.
3. They are responsible for paying up to the closing date all utilities, water bills and taxes on the property.
4. At the closing title they must sign the deed over and sign various disclosures about issues like Lead Paint, Urea, Radon etc.
5. They also need to sign the HUD which is basically a spreadsheet outlining all of the fees and dispersals related to the sale of the home.

An Informal Walk Through

Be Smart, Don't Spend

If you are under contract for your Miami condo or Miami home, be smart, and don't buy anything big on credit until you close. Think of it this way, when you got pre-approved for your mortgage, your income to debt ratio was scrutinized carefully. If you change that ratio substantially, it could jeopardize the bank's ability to underwrite your loan.

It's sort of like baking a cake - you aren't going to turn the oven up or down in the middle of baking, are you? So be careful to keep a financial status quo during your home purchase. You'll sail through your closing and you can buy whatever you want once that deed is securely in your name.

Miami Real Estate Closing: The Buyer

The buyer is responsible for what seems like a lot more than the seller in a Miami real estate transaction. The burden of securing financing and orchestrating the paperwork for the purchase falls on the buyer and his or her agent. In some states title companies can conduct closings while in others attorney's must handle the transfer of property. At the closing table a buyer must:

1. Bring all funds due. This means you must bring your downpayment, less the deposit, plus any additional closing costs.
2. Paperwork - The buyer signs the lions share of real estate closing paperwork including the mortgage, the note and any disclosures required by the bank. Review your HUD, the spreadsheet that indicates all the fees you need to pay, to ensure that it's correct. You don't want to pay for any junk fees that have been inserted at the last minute.
3. Homeowners Insurance - In order to close you must provide proof that you have secured homeowners insurance. This is required by all mortgage lenders to protect their investment. In some cases, you'll need to get flood insurance as well.