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 property and the loan origination process.

The Title Company
The buyer selects a title company. It is the title company's job 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 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 property buyer will usually include a contingency stating that their contract is binding only when there is a satisfactory property inspection report from a qualified inspector.

Before completing his or her purchase of your property, the property 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, mold or environmental.

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 nearer to the close, or

2.  The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of the contract (usually the price).

How do you respond objectively and fairly to the buyer when a renegotiation is requested, 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 contingencies in the past, we at Providence Properties can help resolve problems resulting from inspection issues.

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 compares favorably to similar properties in the area.

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.