It is always recommended that buyers have the property inspected by a licensed property inspector. This is done in the time frame that was agreed upon in the purchase contract. Buyers will have several different inspectors inspect the property. They can obtain professional opinions from inspectors who specialize in a specific area (eg. roof, HVAC, structure). When financing the property it will be appraised by a licensed appraiser. The appraiser will determine the value for the lending institution via third party. This is done so that the lending institution can confirm their investment in your property is accurate.
Escrow’s job is to hold all parties to the contract. Escrow contacts the chosen Title Company to examine and insure 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.
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 goes over every aspect of the property. This is provided for by the purchase agreements and any applicable addendum. 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. Inspections can include: roof, termite/pest, chimney/fireplace, property boundary survey, well, septic, pool/spa, arborist, mold, lead based paint, HVAC, etc.
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? 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.
We suggest that you accept buyers who have a lender’s approval letter, or written loan commitment. This 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.