Agent & Price
Escrow Inspections and Appraisals.
Most buyers will have the property inspected by a licensed property inspector. This happens within the agreed time frame upon in the effective contract to purchase. Some buyers will have several different inspectors perform escrow inspections on the property. This happens 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 have an appraisal. This will take place under a licensed appraiser. This is to determine the value for the lending institution via a third party. That way, the lending institution can confirm that their investment in your property is accurate. A buyer of a commercial property may also have complete other types of audits. An environmental audit and/or soil test may be performed if required by the lending institution.
The Closing Agent.
Either a selected title company or an attorney will serve as the closing agent. Their job is to examine and insure clear title to real estate. After researching the complete recorded history of your property, they will certify two things. That your title is free and clear of encumbrances (eg. mortgages, leases, or restrictions, liens) by the date of closing. And that all new encumbrances are duly included in the title.
A contingency is a condition that must be met before a contract becomes legally binding. For instance, a buyer will usually include a contingency. This may state 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 will buyer go over every aspect of the property. This is provided for by purchase agreements and any applicable addendums. These include:
- 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. These include roof, termite/pest, chimney/fireplace, and a property boundary survey. They also include well, septic, pool/spa, arborist, mold, lead based paint, HVAC, etc.
Depending on the outcome of these escrow inspections, one of two things may happen:
1. Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the closing; or
2. The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of contract (usually the price).
How do you respond objectively and fairly to the buyer when a renegotiation is demanded while acting in your best interests? 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 pre-qualification 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.