Inspections & Appraisal
Inspections. Most buyers will choose to have your property inspected by a licensed home inspector within the timeframe set forth in the effective contract to purchase. Some buyers will have several different inspectors inpsect the property if they wish to obtain professional opinions from inspectors who specialize in specifc areas of concern (e.g. roof, HVAC, structural, sewer, environmental, pest, etc.).
Appraisal. If the contract is conditional upon the buyers obtaiing a loan, their lender will require that your property be appraised by a licensed appraiser to determine the value for the lending institution. This is done such that the lending institution can confirm that their investment in your property is accurate. Even if a buyer is not going be obtaining a loan, they may choose to have an appraisal done to determine an accurate value.
The Closing Agent. Either a title company or an attorney will be selected as the closing agent, whose job it is to examine and insure that clear title of the real estate is being conveyed. After researching the complete recorded history of your property, they will certify that 1) your title is free and clear of all encumbrances (e.g. mortgages, leases, or restrictions, liens, etc.) by the date of closing; and 2) all new encumbrances are duly recorded on the property title.
Contingencies. A contingency is a condition that must be satisfied before a contract can continue as legally binding (i.e, buyer will likely incude a contingency stating the contract is binding only when there is a satisfactory home inspection). Before completing his or her purchase of your property, the buyer will go over every aspect of the property, as provided for by the purchase contract and any applicable addendums. These can include the following:
- Obtaining financing
- Obtianing insurance
- Reviewing all pertinent documents such as the seller's property disclosure, lead based paint discloure, square footage disclosure, source of water addendum and closing instructions.
- Reviewing any applicable HOA documents.
- Reviewing the commitment for title and all related exceptions and requirements.
- Inspecting the property. The buyer has the right to determine the condition of your proeprty by subjecting it to a wide range of inspections, such as roof, termite/pest, chimney/fireplace, survey, well, septic, pool/spa, arborist, mold, lead based paint, HVAC, etc. Depending on the outcome of these inspections, one of two things may happen:
1) Either each milestone is successfully reached causing the contingencies to be removed or, 2) The buyer, after reviewing the property and documentation, requests a renegotiation of the terms of the contract by either a reduction in the price or by having you (the seller) address and perform remedies and repairs. We'll work with you through each issue in a timely and dilligent fashion, such that we can respond in an objective and professional and fair manner. This is where a professional listing agent can make a real difference in the outcome of a transaction. Having delt with a wide variety of property sales in the past, we can confidently guide you through each issue to ensure we reach a successful closing.
Loan Approval and Appraisal. We'll make sure that every offer you recieve is accompanied by written documentation from the buyer of their financial ability to purchase your home whether it is a pre-qualification letter form their lender, loan commitment, or proof of funds. As discussed above, you should also anticipate that your property will be evaluated by a licensed appraiser. You should prepare for the appraiser's inspection of your home, in the same manner you would prepare for a showing. Remember we effectively are selling your home three times: 1) to the listing agent such that they show it to their buyer, 2) to the buyer and, finally 3) to the appraiser.