Final Walkthrough Problems: What a South Bay Seller Has to Fix or Credit

by Ben Larson

(The information below is for reference only based on research and personal experience, it is NOT meant to be legal, financial, or tax advice. I can refer you to any of those professionals so feel free to reach out.)

What happens if the buyer finds a problem at the final walkthrough?

In California, the final walkthrough is not a new inspection and it is not a contingency, so a buyer cannot cancel just because they do not like what they see. What they can check is whether you kept the home in the same condition as when you accepted the offer, finished the repairs you agreed to, and did everything else the contract asks of you. If something on that list falls short, it is usually solved with a repair, a credit, or money held back in escrow, and it can push your closing date if it is not handled quickly.

By Ben Larson | November 2, 2026

The final walkthrough is the part of escrow most sellers think about least. Then, a day or two before closing, the buyer walks through one last time and their agent calls yours. Something is wrong.

Usually it is small and fixable. Whether you are selling a ranch house in Torrance, a beach close home in Redondo Beach, or a view home in Rancho Palos Verdes, here is what the buyer can actually hold you to at the walkthrough, what you can politely decline, and how to keep a late surprise from costing you more than it should.

What the walkthrough is, and what it is not

Most South Bay sales are written on the California Association of REALTORS Residential Purchase Agreement. In the 12/22 version of that form, the buyer gets a final verification of condition within 5 days before close of escrow by default, "NOT AS A CONTINGENCY OF THE SALE," but solely to confirm three things:

The property has been maintained the way the contract says.
Repairs have been completed as agreed.
You have complied with your other obligations under the agreement.

The maintenance standard matters most. Unless you agreed otherwise, the home is sold in its present physical condition as of the date of acceptance, and "the Property, including pool, spa, landscaping and grounds, is to be maintained in substantially the same condition as on the date of Acceptance." The standard is not perfect. It is the house the buyer agreed to buy.

One California transaction guide put it plainly: "a buyer who dislikes what they see at the walkthrough has no contractual route out on that basis alone." That is good news for you, but do not stretch it. If the problem is that you did not do something the contract requires, that is a performance issue, and the buyer can refuse to sign and hold up escrow until it is fixed.

The five problems that come up most at walkthroughs

1. Damage from moving out. Scraped floors, gouged door frames, a broken gate latch. This is the most common one, and it is yours, because the home was not damaged on the day of acceptance.

2. Stuff left behind. Paint cans in the garage, old lumber in the side yard. The RPA says all debris and personal property not included in the sale must be removed by close of escrow or when possession is delivered. If items are left, the form says "all items shall be deemed abandoned," and after giving you written notice the buyer can pay to have them hauled and pursue you for the reasonable cost.

3. Repairs that are not done, or done without paperwork. If you agreed to repairs after the inspection, the RPA expects them finished before the final verification. The work has to comply with permits and be done in a good, skillful manner, and you are supposed to give the buyer copies of invoices and paid receipts, plus a written statement for any repairs you did yourself. Missing receipts are an easy problem to prevent.

4. Things that were supposed to stay. Built in appliances, light fixtures, window coverings, the garage door remotes, the smart thermostat. Under the RPA, a flat screen TV that is not attached is excluded, but unless your contract says otherwise, brackets "will be removed and holes or other damage shall be repaired, but not painted." You also owe the buyer keys, codes, and the means to operate locks, mailboxes, alarms, garage openers, and connected devices that are included in the sale.

5. Utilities shut off. The RPA asks you to keep "water, gas, electricity and all operable pilot lights on" through the date possession is delivered. If you cancel service early, the buyer cannot test the dishwasher, the water heater, or the air conditioning, and the walkthrough gets rescheduled.

What you have to fix versus what you can say no to

Here is the simple test I use with sellers:

Did it change after we accepted the offer? New damage, missing items, a pool that went green, a lawn that died because the sprinklers were turned off. That is on you.
Did you agree in writing to do it? Agreed repairs and agreed credits are on you, too.

If the answer to both is no, you generally do not owe it. A stained carpet that was stained during showings, an old crack the inspector already noted, or a fixture the buyer has decided they do not like is not a walkthrough issue. One California agent on Reddit summed it up well: "The seller can leave carpets dirty and holes in the walls from picture hangers, etc. You're buying a lived-in home, not a brand-new car."

Still, if a buyer asks for a small, fair credit two days before closing and your movers are already scheduled, the math often favors saying yes. I walked through that tradeoff in my post on whether you can refuse a repair request after inspection in California, and the same logic applies here, just with less time.

Fix it, credit it, or hold it back in escrow

When there is a real problem, you have four practical ways to solve it. Each one needs to be in writing through the agents and escrow.

Fix it before closing. Best when the repair is quick and a vendor can get there. Get the invoice, pay it, and send the receipt.
Give a credit. Fast and clean for both sides, but the buyer's lender has to approve it, and a late credit can change the buyer's closing documents and timing. Ask early, not the morning of signing. If you are deciding between a credit and a price change, here is how a seller credit compares to a price cut.
Hold money back in escrow. Part of your proceeds stays with escrow until the work is done, then gets released. This needs written escrow instructions, and if the buyer has a loan, the lender has to approve it in writing. Not every lender allows one.
Push the closing. Sometimes the work needs a few more days. That takes a signed extension, and it can affect your move and your next purchase.

The worst outcome is the buyer refusing to sign while nothing is in writing and the deadline passes. That is how a small problem becomes a big one.

Why this matters more this fall

The South Bay has more inventory this fall than it did in spring, and price reductions are showing up across the area. Buyers with more choices look harder at every detail. A buyer who competed for your house may let a scuffed floor go. A buyer who negotiated hard all through escrow is more likely to raise it. Plan for the second buyer.

A seller's checklist for the last week of escrow

Plan your move-out so the house is empty before the walkthrough, not during it. Your agent can help you line this up with the South Bay seller escrow timeline.
Finish agreed repairs early and collect every invoice and paid receipt.
Keep the pool, spa, sprinklers, and landscaping running exactly as they were.
Leave water, gas, and power on until possession transfers.
Remove everything that is not included, including the garage, side yards, attic, and sheds. Broom clean is the bar, not a deep clean, but take it seriously.
Leave keys, remotes, gate fobs, codes, and manuals on the kitchen counter.
Walk and photograph every room after the movers leave. If something was damaged, tell your agent before the buyer finds it.
If you are staying after closing, use a written rent back agreement and do a joint walkthrough when you leave. I explain how that works in my post on seller rent backs in the South Bay.

Frequently asked questions

Can a buyer back out after the final walkthrough in California?

Not just because they are unhappy with the walkthrough, because the final verification is not a contingency under the standard RPA. If the seller has not done something the contract requires, the buyer can refuse to close until it is resolved, and the parties usually settle it with a repair, credit, holdback, or short extension.

How clean does a seller have to leave the house?

The standard RPA requires debris and personal property not included in the sale to be removed, and the home maintained in substantially the same condition as at acceptance. In practice that means empty and broom clean, not professionally deep cleaned, unless your contract says otherwise.

Do I have to patch holes from my TV mount?

Under the 12/22 RPA, unless your contract says the brackets stay, they are removed and the holes or damage are repaired, but not painted. Check your own contract, because many offers list the mounts as included.

The bottom line

The final walkthrough is not a second inspection, and you do not owe a buyer a brand new house. You do owe them the house they agreed to buy, the repairs you promised with receipts, the items that come with it, and working utilities. Get those right and the walkthrough is a formality. If you are thinking about selling and want a clear plan for the whole process, start with my home selling guide, or request a home value evaluation and I will walk you through what your sale could look like from list date to keys.

Selling a home with a pool or a big yard?

Pools, spas, and landscaping are named in the contract as things you have to keep up until closing. If you want to see what buyers are comparing yours against, these are the searches I would look at:

About Ben Larson

Ben Larson leads Larson Realty Group, powered by Real Broker, serving the South Bay of Los Angeles. Licensed since 2006 with more than $100 million in closed sales, he specializes in listings across the Palos Verdes Peninsula and the beach cities, and works extensively with probate, trust, and inherited property sales. Reach him at https://larsonrealty.group. DRE #01746853.