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What Buyers can Demand at a Final Walk-Through

Find out how final walk-throughs differ from initial walk-throughs and what you can do to avoid closing delays.

By Emily Southey | 10 minute read

Oct 4

Home sales are exciting for both buyers and sellers. On one hand, the buyer probably can’t wait to move into their brand new home. On the other, the seller is looking forward to closing the deal so they can reap the financial rewards. But before either of these events can take place, it’s common for a final walk-through of the property to take place. Pre-closing walk-throughs are done to ensure everything is ready for closing. Buyers often ask for small changes to make sure they’re getting exactly what they paid for. And if the final walk-through reveals major issues, there’s even a chance that the buyer could back out of the deal. For this reason, sellers must understand what a final walk-through entails and what steps they can take to ensure the process goes as smoothly as possible.

What Happens at a Final Walk-Through?

Many sellers have no idea what a final walk-through is or what it entails. In real estate, a final walk-through is the last inspection of the home before the deal is done. The timing of the final walk-through varies depending on your purchase agreement, but will generally take place prior to the closing date (buyers typically prefer to schedule the final walk-through as close to the closing date as possible).

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The purpose of a final walk-through is for buyers to make sure that the property is in good condition. To confirm this, buyers will literally “walk-through” the property and check that everything is in working order. How involved the final walk-through is ultimately depends on the buyer. Some might think a basic visual examination of the home is adequate while others might be inclined to test every light switch or flush every toilet. Minor issues like a light bulb being burnt out are usually not a cause for concern. However, if major damage is evident, this could pose a problem. As a seller, it is recommended to have the property professionally cleaned before the walk-through.

Since the extent of the final walk-through depends on the buyer, as well as the size of the home, they can vary in length from 15 or 20 minutes to upward of an hour. Assume it will take an hour or more to avoid any scheduling conflicts.

Finally, the people who attend the final walk-through also vary but typically include the seller, the buyer, and each party’s REALTOR®. However, a buyer can choose to invite friends or family, or even a contractor.

What Happens at a Final Walk-Through?

Many sellers have no idea what a final walk-through is or what it entails. In real estate, a final walk-through is the last inspection of the home before the deal is done. The timing of the final walk-through varies depending on your purchase agreement, but will generally take place prior to the closing date (buyers typically prefer to schedule the final walk-through as close to the closing date as possible).

The purpose of a final walk-through is for buyers to make sure that the property is in good condition. To confirm this, buyers will literally “walk-through” the property and check that everything is in working order. How involved the final walk-through is ultimately depends on the buyer. Some might think a basic visual examination of the home is adequate while others might be inclined to test every light switch or flush every toilet. Minor issues like a light bulb being burnt out are usually not a cause for concern. However, if major damage is evident, this could pose a problem. As a seller, it is recommended to have the property professionally cleaned before the walk-through.

Since the extent of the final walk-through depends on the buyer, as well as the size of the home, they can vary in length from 15 or 20 minutes to upward of an hour. Assume it will take an hour or more to avoid any scheduling conflicts.

Finally, the people who attend the final walk-through also vary but typically include the seller, the buyer, and each party’s REALTOR®. However, a buyer can choose to invite friends or family, or even a contractor.

“A final walk-through is the last inspection of the home before the deal is done. The timing of the final walk-through varies depending on your purchase agreement, but will generally take place prior to the closing date.”

A Final Walk-Through Versus A First Walk-Through

As mentioned, a final walk-through takes place near the closing date and is an opportunity for the buyer to visit the home before the sale goes through. The purpose of a final walk-through is to ensure the house is in proper condition. For example, if the seller agreed to certain repairs in the purchase agreement, the buyer will likely check that these repairs have been completed. 

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In contrast, a first walk-through might occur shortly after the buyer’s offer has been accepted but well before the closing date. During the initial walk-through, the buyer may take measurements for new furniture or bring along a contractor to get an estimate on future renovations or upgrades. A buyer might even bring paint swatch samples to help them decide on colours for various rooms. Initial walk-throughs tend to take longer than final walk-throughs, so sellers should allocate at least an hour for this.

Can a Buyer Back Out at Closing?

Yes, a buyer can back out at closing for a number of reasons, one of which relates to the final walk-through. If the buyer was not satisfied with the condition of the home in the final walk-through and felt that it did not meet the standards outlined in the purchase agreement, they can walk away from the deal. However, in most cases, the buyer will want to resolve the issue with the seller rather than lose out on the house. That said, since a buyer might be within their legal rights to back out of a sale due to something discovered in the final walk-through, it’s in the seller’s best interests to ensure everything goes smoothly. 

Final Walk-Through Checklist 

Sellers must have an idea of what buyers are looking at during the final walk-through. This information may allow sellers to mitigate any potential issues. The following is an example of a final walk-through checklist that a buyer might use: 

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  • Test all electrical outlets and light fixtures; 
  • Test faucets and pipes (not only that they turn on, but also for water pressure and hot water);
  • Check that all sink and shower/bathtub drains are clear;
  • Keep an eye out for mould or water damage;
  • Look for signs of pest infestations (for example, nests, droppings, strange odours, gnaw marks, or shredded paper). Pests tend to live in dark, sometimes moist places, so pay close attention to corners, baseboards, basements, and bathrooms; 
  • Test all appliances (if included in the sale), such as the oven, microwave, fridge, dishwasher, dryer, and washer; 
  • Open, close, and lock all windows and doors to ensure they are functional; 
  • Flush all toilets;
  • Inspect the walls, ceilings, and floors, as these are more prone to damage, especially when moving;
  • Turn on all HVAC units (for, example, furnace, air conditioner) and make sure that any outdoor HVAC parts are free from debris;
  • Open all closets, cupboards, and cabinets and visually inspect all rooms to ensure the seller’s belongings are gone;
  • Check that the home is clean (no dirt or other signs of neglect);
  • Inspect any attics or crawl spaces for damage or seller’s belongings;
  • Test all exhaust fans (for example, the exhaust fan above the stove);
  • Inspect all fireplaces; 
  • Check that all garbage and debris have been removed from both inside and outside the home;
  • Inspect the front yard, backyard, front door, porch, mailbox, garage, and driveway for damage; 
  • Inspect any detached structures on the property, such as sheds or swimming pools; 
  • Test that the garage door and its remotes work;
  • Check that no shrubs, trees, plants, or flowers have been removed; and 
  • Test the locks of any external gates (for example, a backyard gate) and make sure they are in good condition.

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Finally, unless stipulated in the purchase agreement, the property should not contain any of the seller’s belongings. If the agreement included certain appliances or fixtures, then the buyer will likely ensure that those items are in the home. In addition, if any repairs were negotiated during the homebuying process, the buyer will check that they are completed, so make sure that any agreed-upon repair work has been completed and the home professionally cleaned before the final walk-through.

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Three Ways Sellers Can Ensure a Smooth Final Walk-Through

To avoid delays and ensure the final walk-through goes off without a hitch, follow the tips below. 

1. Complete any necessary or minor repairs

If any repairs were stipulated in the purchase agreement, make sure these are completed well before the final walk-through (especially since you will likely need time to clean the property after the repairs are done). Make sure to keep any receipts or other documents relating to the repairs in case you need to prove to the buyer that they were completed. If no repairs were stipulated in the purchase agreement but you notice minor cosmetic issues that you’re worried could impact the final walk-through, take the time to fix them. Some chipped paint or a small hole in the wall isn’t worth the risk of a delayed home sale. 

2. Hire a professional to clean your home 

Although cleaning the home isn’t mandated, it’s a gesture of goodwill that can go a long way during the final walk-through. Hiring a professional cleaner usually isn’t too expensive, especially since the property likely won’t contain any furniture or belongings. If you can’t afford a deep clean, at least take care of the basics, like sweeping, vacuuming, and dusting.  

3. Thoroughly review the purchase agreement

The more detailed the purchase agreement, the better. Before the final walk-through, make sure you review the purchase agreement to confirm what your obligations are. For example, if you agreed to leave certain items (kitchen appliances or light fixtures) or make certain repairs, remember to hold up your end of the bargain. If the purchase agreement does not have any items included, then be sure to remove every single belonging before the final walk-through. Ultimately, taking another look at the purchase agreement before the final walk-through will ensure you’ve met your obligations, increasing the odds of a successful walk-through.

Frequently Asked Questions

What do buyers check on the last walk-through?

During the last walk-through, buyers inspect the interior and exterior of the home. Generally, the purpose of a final walk-through for buyers is to assess the condition of the home. To do this, they might turn on all appliances, HVAC units, and light fixtures; flush all toilets; check all faucets; open, close, and lock all windows, doors, gates, and garages; and inspect the home for dirt, pests, or other signs of neglect. Buyers will also make sure that all obligations outlined in the purchase agreement have been met by the seller (for example, if a certain repair was stipulated, they will check that the repair has been completed). 

Can a buyer withdraw after the final inspection?

Depending on the terms of the purchase agreement, a buyer may have the right to withdraw their offer after a final walk-through or inspection. However, this hinges on the purchase agreement. To avoid this outcome, work with a REALTOR® and real estate attorney when drafting the purchase agreement to give the buyer little leeway in this regard. 

What happens if a buyer discovers issues during the final walk-through?

If a buyer discovers issues during the final walk-through, they may have the option of walking away from the deal. However, this usually isn’t ideal for either the buyer or the seller, which is why more often than not, the situation results in other outcomes. Some of the most common outcomes that arise when a buyer identifies problems during the final walk-through are as follows: 

 

  • The buyer tries to push back the closing date: If the condition of the home is not up to snuff (if it’s damaged, missing appliances, or has incomplete repairs), a buyer can demand a delayed closing date from the seller. A delayed closing date gives the seller more time to make the necessary repairs and generally improve the condition of the home.

  • The buyer attempts to renegotiate the purchase agreement: Sometimes a buyer will attempt to renegotiate the contract rather than walk away from the sale or push back the closing day. For example, a buyer may propose that the seller lowers the purchase price to cover the cost of repairs or pays them an extra fee to cover the repairs. 

  • The buyer sets up a holdback: The buyer setting up a holdback is one last outcome of an unsatisfactory final walk-through. A holdback is when the sale proceeds are “held” and are not released until the seller has met their contractual obligations (for example, completing the agreed-upon repairs). A holdback is typically held in a trust by the buyer’s real estate attorney. The goal of setting up a holdback is to motivate the seller to meet the terms of the agreement. (Since homes are expensive, the seller stands to make a lot of money. Therefore, withholding the sale proceeds is usually an effective way of incentivizing the seller to comply with the purchase agreement.) That said, an attorney is generally required to set up a holdback, so buyers must be able to afford the additional legal fees.

Why do buyers usually change their minds?

There are many reasons buyers might change their minds about a home purchase. These can include an unsatisfactory home inspection, failure to obtain the necessary financing, finding a home they like more, the sale of their current home falling through, or a simple case of cold feet. As a seller, it’s crucial to understand in which scenarios a buyer is within their legal rights to cancel a home sale. Depending on how far into the process they are and the terms of the purchase agreement, they may not have the right to back out of a sale for certain reasons (for example, cold feet). 

Emily Southey

Wahi Writer

Wahi

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