Escrow Inspections and Appraisals
Inspections and Appraisals
The buyer will have the property inspected by a licensed inspector within the time frame that was agreed upon in the contract. 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.
The Closing Agent.
The Title Company will be the closing agent. Their job will be to ensure a clear title after researching the complete history of your property. They will certify that your title is free and clear of mortgages, leases, restrictions or liens by the date of closing; and they will ensure all new encumbrances are included in the title.
Contingencies are conditions that must be met before the contract becomes legally binding. Usually a buyer will include a contingency that states their contract is binding only after there is a satisfactory home inspection report from a qualified inspector.
Before the purchase of the property is completed, the buyer will go over every aspect of the property as provided for by the purchase agreements and addendums. These include:
- Obtaining the financing and insurance.
- Reviewing all documents such as title reports and disclosure documents.
- Inspecting the property.
Depending on the outcome of these inspections performed, one of two things may happen:
1. Everything is successfully closed and the contingencies get removed bringing you one step closer to the closing; or
2. After reviewing the property and the papers, the buyer requests a renegotiation of the terms of the contract (usually the price).
When a renegotiation of the contract is demanded, your professional real estate agent can make a real difference in the outcome of the transaction. Having dealt with these situations and many more, we guarantee our expertise and total commitment to every customer, no matter the situation.
Loan Approval and Appraisal.
We suggest that you accept buyers who have an approval letter, a lender’s pre-approval or written loan commitment. This is a better guarantee of loan approval than a pre-qualification letter from a lending institution. Expect that there will be an appraiser from the lender’s company to review your property and verify that the sales price is appropriate.