Inspections and Appraisals
Most buyers will have the property inspected by a licensed property inspector within the due diligence period that was agreed upon in the purchase agreement. Some buyers will have several different inspectors inspect the property if they wish to obtain professional opinions from inspectors who specialize in a specific area (eg. roof, HVAC, structure). If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution via a neutral third party. This is done so that the lending institution can confirm their investment in your property is accurate.
The Closing Agent.
A title company will be selected as the closing agent, whose job is to examine and insure a clear title to real estate. After researching the complete recorded history of your property, they will certify that 1) your title is free and clear of encumbrances (eg. mortgages, leases, or restrictions, liens) by the date of closing; and 2) all new encumbrances are duly included in the title. In addition, they will hold funds during escrow and disburse funds upon closing
A contingency is a condition that must be met before a contract becomes legally binding. For instance, a buyer will usually include a contingency stating that their contract is binding only when there is a satisfactory home inspection report from a qualified inspector. Before completing his or her purchase of your property, the buyer will go over every aspect of the property, as provided by the purchase agreements and any applicable addendums.
- Obtaining financing and insurance.
- Reviewing all pertinent documents, such as preliminary title reports and
disclosure documents; and
- Inspecting the property. The buyer has the right to determine the condition of your property by subjecting it to a wide range of inspections, such as roof, termite/pest, chimney/fireplace, property boundary survey, well, septic, pool/spa, arborist, mold, lead-based paint, HVAC, etc.
After reviewing the home inspection report, should there be any items in need of repair, the Buyer may request repairs or credit in lieu of repairs for those items.
How do you respond objectively and fairly to the buyer when a renegotiation is demanded, while acting in your best interest? This is when a professional listing agent can make a real difference in the outcome of the transaction. Having dealt with various property sales in the past, we guarantee our expertise and total commitment to every customer, no matter what their situation is.
Loan Approval and Appraisal.
We suggest that you accept buyers who have a lender’s pre-approval, approval letter, or written loan commitment, which is a better guarantee of loan approval than a prequalification or no documentation from a lending institute. Expect an appraiser from the lender’s company to review your property and verify that the sales price is appropriate.