Before a contract becomes legally binding, conditions, or a contingency, must be met. 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 purchase of your property, the buyer goes over every aspect of the property, as provided for by purchase agreements and any applicable addendums. These include obtaining financing and insurance; reviewing all pertinent documents; inspecting the property (the buyer has the right to determine the condition of your property through inspections, such as roof, termite/pest, chimney/fireplace, property boundary survey, mold, etc.
Depending on the outcome of the inspections, one of two things may happen – all are clear and the contingencies will be removed or the buyer requests a renegotiation of the terms of the contract (usually cost). 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, regardless of the situation.
Inspection and Appraisals
Buyers will likely have the property inspected by a licensed property inspector within the timeframe that was agreed upon in the effective contract to purchase. Some buyers will have several different inspectors check the property if they wish to obtain professional opinions from inspectors who specialize in a specific area. If the agreement is conditional upon financing, the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their investment in your property is accurate. A buyer of a commercial property may also have a complete environmental audit performed and/or soil test, if required by the lending institution.
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. After researching the complete recorded history of your property, they will certify that your title is free and clear of encumbrances by the date of closing and that all new encumbrances are duly included in the title.
Loan Approval and Appraisal
We suggest that you accept buyers who have a lender’s pre-approval, approval letter, or written loan commitment, which 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.