ESCROW INSPECTIONS AND APPRAISAL
Your escrow began when you accepted a buyer's purchase offer
and earnest money deposit. What follows is the inspection
and appraisal of your home and the loan origination process.
The Title Company
The buyer selects a title company, whose job it is to examine
and insure title to real estate. After researching the complete
recorded history of your property, they'll certify that 1.)
your title is free and clear of encumbrances (eg. mortgages,
leases, or restrictions) by the date of closing, and 2.) all
new encumbrances are duly included in the title. They'll draw
up a preliminary report at the end of the process, which your
listing agent will go over with you in detail.
Contingencies
A contingency is a condition that must be met before a contract
becomes legally binding. For instance, a home 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 home buyer goes over every aspect of the property, as
provided for by purchase agreements. 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, such as roof, termite/pest,
chimney/fireplace, property boundary survey, well, septic,
pool/spa, arborist or mold.
Depending on the outcome of these inspections, one of two
things may happen:
- Either each milestone is successfully closed and the contingencies
will be removed, bring you one step closer to the close;
or
- 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 client, no matter
what their situation.
Loan Approval and Appraisal
We suggest that you accept buyers who have a lender's pre-approval
letter, which is a better guarantee of loan approval than
a pre-qualification. Expect an appraiser from the lender's
company to review your property and verify that the sales
price is appropriate.
Ready To Go? Don't pack your bags just yet
Something unexpected might happen-a buyer's offer fails to
push through, or new buyers come by to visit right when your
house is in chaos. There's a proper time to start preparations
for moving, and given our previous experience with these transactions,
we'll help you determine when that time will be.
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