The Nest

NestApple's Real Estate Blog

Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.

The final home walkthrough checklist in NYC

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luxury apartment in NYCYou finally made it and can see the closing around the corner. You are hours away from getting the keys to your new place. The final home walkthrough in NYC is one of the last steps of the purchase process, and the walkthrough is the final inspection before changing ownership. It is never a good idea to blow off the final walkthrough. In this post, we will give you a final home walkthrough checklist.

The final walkthrough remains the last step before closing. We’ll explain the purpose of a final walkthrough and provide you with a handy final home walkthrough checklist. Also, we will explain the differences between a final walkthrough for a re-sale vs. new construction.

What Is the Final home Walkthrough?

It is the last inspection of the property by a buyer and his broker right before closing. Brokers usually schedule the walkthrough the day before closing; sometimes, it takes place on the very day of the closing.

Lastly, both the buyer and seller’s real estate agents attend with the buyer.

What Is the Purpose of a Final Walkthrough?

The primary purpose is to confirm that the property’s condition has not changed since the contract execution. This means verifying that the property’s condition has been intact since the last time the buyer visited the property.

For example, the appliances must be in working order. Any inclusions specified in the deal sheet (fixtures, furniture, fireplace) are present. Also, any agreed-upon repairs got completed. The goal is to check everything is in general working order.

What to look for during the final home walkthrough in NYCfinal walkthrough

A general home final walkthrough checklist to follow is the following.

  • Any repairs are promised to be complete.
  • Contractually agreed items are in place.
  • All light fixtures work.
  • Appliances in working order
  • Bathroom operates properly
  • Laundry machines run accordingly.
  • Walls and floors not damaged
  • No evident sight of pests
  • Confirm all major appliances are still present and in working order.
  • Turn on and off the stove and the stovetop burners. Remember to turn off the gas.
  • Check the temperature of the interior of the refrigerator and freezer.
  • Test all lights and dimmer switches
  • Run the dishwasher, and remember to end the cycle before you leave.
  • Test the washer and dryer
  • Test all doors and door handles, including closet doors and exterior doors.
  • Open and close all windows.
  • Check for new scratches and scuff marks on walls, floors, and the ceiling.
  • Test all electrical outlets with your smartphone charger.
  • Test all faucets, flush the toilet, run the shower and check for leaks.
  • Verify that the heat and air conditioning units function.
  • Test the intercom, door buzzer, or virtual doorman system.
  • Test smart home features and control panels.

Even though in most cases, the walkthrough is a formality, sometimes significant issues can arise. The unit is dirty, or it is not empty. The seller did not complete negotiated repair etc. With the above final home walkthrough checklist, you are all set!

New York Loft purchase: The final walk through in NYCTo fix any of these issues, there are several solutions.

There is no one size fits all answer. The first obvious response is to delay closing. We suggest avoiding this option as it will cause significant damage if a lender is involved, and time is of the essence regarding loan specifications. We only keep that for irresolvable situations.

However, the right solution is for the seller to provide concessions. Therefore, concessions remain economical or give a specific repair/work in the apartment. These will satisfy the buyer and the process with the closing as scheduled.

Another good alternative is to hold proceeds in escrow, and the seller will get access to them after completing the necessary work and satisfying the buyer.

There are as many solutions as problems. It is essential to have a broker looking after your interests in a transaction. Your broker at Nestapple is always with you during this final inspection.

Final Walkthrough for New Construction

This final walkthrough is different for new constructions. In new buildings, we recommend two walk-throughs. The first is to devise aHome Inspection in New York - final home walkthrough checklist “punch list” before signing the contract, and the final walkthrough ensures that everything on the “punch list” is completed.

What is a Punch List

A punch list lists items the buyer wants the sponsor to fix before closing. Sometimes, those new constructions take so long to build that the sponsor still repairs items after closing. Therefore, punch lists are sometimes incomplete at the time of closing.

Sponsors do their best to complete the construction punch list items after closing.

There is no standard timeline for a sponsor to complete the punch list; instead, the sponsor must make commercially reasonable efforts to meet the punch list.

The more prominent sponsors have a reputation for protecting and generally do an excellent job with punch lists.

Final Walkthrough for Re-Sale

Typically a property in New York gets sold as-is, and the seller will not agree to make any repairs or changes. The only time a seller might decide to makefinal home walkthrough checklist repairs is if the buyer is the only interested party. Therefore, the seller is desperate because their property has been on the market for some time.

Even then, buyers and sellers in New York usually agree on a “closing credit.” This is a seller concession in closing costs or price rather than requiring the seller to repair the apartment.

Final Home Walkthrough Is Not a Home Inspection

During the final walkthrough, the buyer only ensures he gets what the buyer and seller negotiated and agreed on in the contract. The final walkthrough differs from the home inspection performed before the purchase.

We recommend every buyer carry out a home inspection after the accepted offer but before executing the purchase contract. This will get the buyer maximum leverage in the contract negotiation. As we detailed in another post about home inspections, buyers can use this opportunity to find issues with the apartment and ask the seller to fix them.

Alternatively, buyers can negotiate a seller’s credit (or a purchase price reduction). When the property gets sold as-is, and the seller refuses to do the repairs, the buyer and seller usually agree to a price reduction.

In our case, buyers must not treat the final walkthrough like a home inspection.

The goal is not to find things to fix that should have been done before the contract signing. Therefore, the goal is to confirm that the property has remained unchanged since signing the contract. The majority of contracts specify the property gets sold “as-is.”

This means in the condition found on the date of execution. The appliances remain in working order and specified, and contracts specify any negotiated inclusions and exclusions when buying a home.

Written By: Georges Benoliel

Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.

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