Boston Home Closing To-do List and the Associated Costs

Buyers and sellers always ask me the same question, “what do I need to do before closing my Boston home?” Here’s an organized list to help address some of the more common concerns:

1. Homeowners Insurance - If buying, you need to get homeowner’s insurance, as well as insurance for the value of the property replacement. If it is a condo in Boston, the building already has replacement insurance on the building and the condo fees do cover it.

2. Utilities - Buyers must call utility companies: water, gas, electric, cable, alarm security etc, to switch over the service to their names. If selling, you need to call all the above companies a few days before the closing to disconnect the services  as of the closing date, so that the buyer(s) can make the transfer and switch over.

3. Reserve Movers - Both buyers/sellers need to reserve movers in advance and secure moving insurance beforehand through your insurance provider. Moving companies can gauge you on moving day with their inflated rates. Sellers - it is preferable to move a day or more before the closing, so you have time to have the house cleaned. There’s nothing more unpleasant for buyers to take a final walk-though and see a dirty property - not a good impression.

4. Closing costs - Attorneys typically advise buyers/sellers of the closing costs prior to the transaction. The rule of thumb is generally 1% of the property value. However, the Title Insurance is the trickier cost, and this can fluctuate depending on the amount of the mortgage/loan amount. A simple way to calculate this amount is to divide the loan amount by 1,000 and multiply by 2.5. The seller always pays for the stamps at closing.

The closing process can seem daunting if you’re unprepared. You need an experienced broker like me to help guide you through these steps to make buying/selling your Boston home a seamless, stress-free and pleasant experience. Have another question about closing costs? I’m happy to help!