Inspections and Appraisals
When purchasing a property, most buyers opt to have a licensed property inspector inspect the property within the agreed time frame outlined in the contract. Some buyers may choose to have multiple inspectors evaluate the property for a more thorough assessment in specialized areas such as the roof, HVAC or structure. If the purchase agreement is contingent upon financing, the property will be appraised by a licensed appraiser to determine the property's value for the lending institution. This is to ensure the lending institution's investment in the property is accurate. In the case of a commercial property, a buyer may also need to have a complete environmental audit and/or soil test performed as required by the lending institution.
The Closing Agent.
A closing agent, either a title company or an attorney, will be chosen to ensure that the title to your property is clear and can be insured. They will thoroughly investigate the recorded history of your property to verify two crucial aspects. Firstly, they will certify that there are no encumbrances such as leases, restrictions, or liens that will affect the property's title by the closing date. Secondly, they will ensure that any new encumbrances are appropriately added to the title.
A contingency is a provision that must be fulfilled before a contract can be deemed legally enforceable. For instance, a buyer may include a contingency clause specifying that their contract will only become binding if a satisfactory home inspection report is obtained from a qualified inspector.
The buyer's inspection of the property is a crucial step in the real estate transaction process. The inspection process typically involves a walkthrough of the property to ensure that everything is in working order and to identify any potential issues or needed repairs. The purchase agreements and any applicable addendums will outline the specific requirements and conditions that the buyer must satisfy during the inspection period. The buyer may bring in various specialists, such as electricians or plumbers, to examine specific components of the property. Once the inspection is complete, the buyer may request repairs or other concessions from the seller based on the results.
- 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, 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 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).
When a buyer demands a renegotiation, it can be difficult to respond objectively while also acting in your best interests. This is where a professional listing agent can make a significant difference in the outcome of the transaction. Drawing on our experience with various property sales, we are committed to providing expert guidance and support to all our customers, regardless of their unique circumstances. We will work closely with you to navigate the renegotiation process and ensure that your interests are protected at every stage. With our expertise and dedication, you can have confidence that your transaction will be handled with professionalism and care.
Loan Approval and Appraisal.
It is advisable to consider accepting buyers who have a pre-approval or written loan commitment from their lender, as this provides a better guarantee of loan approval than a pre-qualification or no documentation from a lending institute. To ensure that the sales price is appropriate, an appraiser from the lender's company will review your property. We recommend working with buyers who have taken the necessary steps to secure financing and have the ability to follow through with the purchase, providing you with a smoother transaction and reducing the likelihood of the sale falling through due to financing issues.