The deed has recorded and your home is sold. Before you put the transaction behind you, there are a few important financial and practical details worth checking.
Selling your home is a major milestone, but closing does not necessarily mean everything related to the sale is finished. A few follow-up steps can help protect your proceeds, preserve important records, and prevent overlooked details from becoming problems later.
1. Protect Your Closing and Sale Proceeds
Real estate wire fraud is real, and once funds are sent to a fraudulent account, they are often extremely difficult or impossible to recover.
Criminals may impersonate a bank, title company, escrow officer, real estate agent, or another party to the transaction and provide fraudulent wiring or signing instructions.
Never change wire or signing instructions based solely on an email, text message, or unexpected phone call. Any change should be independently verified both verbally and in writing with the title company and your real estate agent, using contact information you already know to be legitimate.
After closing:
- Confirm that your sale proceeds have been received.
- Confirm that mortgages or other liens that were to be paid through closing have been properly paid and released.
If you discover a problem involving the transfer or receipt of funds, contact the appropriate financial institution or title company promptly.
2. Consult Your CPA or Financial Advisor
The sale of your primary residence may qualify for a substantial federal capital-gains tax exclusion, but eligibility and the calculation of any taxable gain depend on your individual circumstances.
Your CPA or tax professional can determine how the sale should be treated and which expenses and improvements may affect your taxable gain.
A financial advisor can help you determine how the proceeds fit into your broader financial plans.
Seeking professional advice soon after the sale can help avoid costly omissions or decisions that may be difficult to correct later.
3. Keep Your Sale and Tax Records
Keep the important records associated with the purchase, ownership, and sale of your home together and in a safe place.
These may include:
- Your final settlement or closing statement
- Original purchase and closing records
- Records and receipts for capital improvements
- Documentation of relevant selling expenses
- Mortgage or lien payoff information
- Other important documents related to the sale
Your CPA or tax professional can advise you which records should be retained and for how long.
4. Update Your Address
Make sure organizations that may need to reach you have your current address.
Remember to update:
- USPS mail forwarding
- Banks and credit-card companies
- Insurance providers
- Employer and payroll records
- Tax and government agencies, as applicable
- Subscriptions and recurring deliveries
- The title company
- Other important accounts associated with your former address
5. Confirm Utilities and Property Services
Utilities and services are normally addressed before closing or possession, but some accounts can be overlooked. Confirm afterward that everything associated with the property has been properly transferred, terminated, or final-billed.
Check:
- Electricity and gas
- Water and sewer, where applicable
- Trash service
- Internet and cable
- Security or monitoring services
- Pool and landscaping services
- Pest-control plans
- HOA accounts and any automatic payments
- Other recurring property-related charges or autopayments
Keep any final statements or confirmations you may need later.
6. Adjust Your Insurance Coverage
Contact your insurance professional to make sure your coverage reflects the sale of the property.
Arizona differs from many states in how closing and possession are handled. The transaction is not complete when the parties sign their closing documents or when funds are delivered. Closing occurs when the deed is recorded. Possession is generally tied to recording unless the parties have specifically agreed otherwise in the contract.
Allowing a buyer to take possession before recording, or allowing a seller to remain in possession afterward, can create significant legal, financial, and insurance risks for both parties. Any different possession arrangement should be documented in the contract and addressed with the appropriate professionals.
Do not cancel your homeowners insurance prematurely. Coordinate the termination of coverage with the transfer of ownership and possession and with your insurance provider.
If you purchased another home or moved into a rental, confirm that the appropriate homeowners or renters coverage is in effect. A significant change in your assets may also be a reason to review your overall liability coverage with your insurance professional.
7. Compare Your Pre-Closing and Final Closing Statements
Compare the preliminary settlement statement you received before closing with your final closing statement.
Review:
- Final sale price and any credits
- Mortgage and other lien payoffs
- Real estate commissions
- Title and escrow charges
- Taxes, assessments, and prorations
- Other seller charges or credits
- Final net proceeds
Some figures may legitimately change before closing, but you should understand why they changed. If you find an unexpected charge, credit, payoff, or other discrepancy, contact the title company promptly.
8. Follow Up on Refunds and Money Owed to You
Selling your home may result in refunds or other money being returned to you after closing. Depending on your circumstances, this could include unused homeowners insurance premiums, mortgage escrow balances, utility or security deposits, HOA credits or overpayments, or other prepaid amounts.
If you had an FHA-insured mortgage, check with HUD or your lender to determine whether you are entitled to any mortgage-insurance refund. Eligibility depends on when the loan originated, how the FHA insurance was terminated and other circumstances.
If you had a VA loan, confirm that the loan has been reported paid in full and that your VA loan entitlement has been restored, or request restoration if necessary, so it is available for a future VA home purchase.
Make a note of any refunds or balances you expect to receive and follow up if they do not arrive within the expected time.
Final Thoughts
Selling a home involves more than signing the final documents and receiving the proceeds. Taking a little time after closing to confirm that funds were received, accounts were closed properly, records were saved, and any expected refunds were received can prevent small loose ends from becoming larger problems later.
Keep your final closing documents somewhere you can find them. You may need them months or even years from now for tax, financial, insurance, or future real estate purposes.
