Heat, air, and running water help protect vacant homes
Perhaps you’ve sold this house from out of state or had to quickly relocate for a job transfer before the sale closes. Whatever the case, you’re still responsible for any damage that happens to the under-contract home until closing, so don’t count your chickens before they hatch.
Keep your utilities running from afar so you can control the temperature and ideally set up some lamps that can turn on via a self-timer in the evenings to discourage a break-in. To avoid a burst pipe in freezing weather, you need to maintain a house temperature no lower than 55 degrees.
Southern states aren’t completely in the clear, either. Even warmer regions can see freezing temperatures, and when the pipes freeze and burst, the damage can get expensive fast. At best, you’re looking at water damage to floors, walls, and carpeting. At worst, you could be dealing with major repairs or even a full rebuild.
On the flip side, letting a house get too hot can cause problems, too. Temperatures above 85 degrees can contribute to peeling wallpaper, chipped paint, and higher humidity, which can create a breeding ground for mold.
A house without working utilities can also create insurance concerns, especially if it’s going to sit vacant for an extended period. Some insurers have specific requirements for vacant homes or may limit coverage if the property isn’t properly maintained. If you leave the property vacant for weeks without telling your insurance company, your policy may not cover certain claims that happen while the house is unoccupied.
Utility liens can block your sale
Let’s say there’s a mix-up. You’ve been out of the home you’re selling for several months, and your utility bills went unpaid. And as a result, the energy or water company places a lien against your home. You go to close the sale, and it’s blocked by a cloud on the title that you discover to be one or more unpaid utility bills, attached by the local government that manages the city’s utilities.
Now, at this point, you could likely hold back a set of funds to cover the utility lien with the sale proceeds. Such a situation can be avoided by covering the utilities for the property all the way through closing, making sure to pay off any outstanding bills well beforehand, and communicating closely with the buyer about the utility transition.
»Learn more: As you get the utilities and other closing details in order, don’t forget to budget for the costs that come with selling your home. Use HomeLight’s Seller Closing Cost Calculator to estimate what you may owe at closing and avoid any last-minute financial surprises.
Transfer is easier than an actual shut-off
Ideally, the utilities are never actually shut off, as they might be when a bill goes unpaid. Instead, the accounts are simply transferred to the new owner after closing.
Once you turn off your utilities, turning them back on can take 24 to 48 hours minimum for some companies. A technician may need to come to your home to physically get things back up and running. You’ll likely also pay a reconnection fee to account for the technician’s time and work. These fees vary by company and municipality, so you’ll need to check with your utility provider to get an exact number.
However, even if the buyer says they’ve requested service for the day after closing, it’s best practice for you as the seller to also call your utility companies and put in a “Stop Service” request for the date that you want your service at that address to end. With most companies, you can do this online.
Finally, Brown recommends that sellers also add in additional time if they’re dealing with a municipality to schedule their utilities transfer, as city departments can take longer to get you on the schedule than private companies.
Reduce stress with a smooth utilities transition
A home sale is a stressful period for all involved, and despite being a small detail, utility transfer can raise tension and problems right when you’re about to make your exit as a seller. Rather than cut it close and try to save a few bucks with an early utilities cut-off, hedge on the side of giving yourself and the buyer a little breathing room to navigate the transition. The buyers will appreciate it, and you won’t create any additional risk of something bad happening to the home in the 11th hour.
When in doubt, keep the home well-lit, functioning at a comfortable temperature, and connected to the water lines until you’re 100% confident the deal is done. Working with a knowledgeable real estate agent can take some of the guesswork out of the process and help keep these final details on track.
HomeLight can connect you with top-rated local agents who can guide you through the sale from start to finish, including those easy-to-overlook tasks that come up before closing.
