Escrow Inspections and Appraisals
Agent & Price
Inspections and Appraisals
Most buyers will have your property inspected by a licensed property inspector within the time frame that was agreed upon in your purchase and sale 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 third party. This is done so that the lending institution can confirm their investment in your property is accurate. When the appraisal occurs the home should be ready as if it were being shown to a buyer. I will meet the appraiser to answer questions and bring comparable sales to share to support the purchase price.
The Closing Agent.
Either a title company or an attorney will be selected as the closing agent, whose job is to examine and insure clear title to real estate and “close” the transcation. 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, as provided for by purchase agreements and any applicable contingency addendums.
Contingencies may include:
- Obtaining financing
- Obtaining a clear and satisfactory Title Report
- Inspection of the property.
Depending on the outcome of these inspections, there are a few different possible outcomes. The buyer may be satisfied with the outcome of the inspection(s) and remove their inspection contingency. The buyer may instead find deficiencies significant enough to request a renegotiation of the terms of contract by either requesting the seller to make repairs or a renegotiation of the purchase 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. I have an excellent track record of negotiating on my seller’s behalf in these situations.