Inspections and Appraisals

When selling your property, it’s common for buyers to conduct inspections and appraisals to assess its condition and value. Here’s some information to keep in mind:

1. Inspections: Buyers often hire licensed property inspectors to evaluate the property within the agreed-upon timeframe stated in the purchase contract. They may also bring in specialized inspectors for specific areas like the roof, HVAC, or structure. These inspections help buyers make informed decisions about the property’s condition.
2. Appraisals: If the purchase agreement is contingent upon financing, the lending institution will require a licensed appraiser to determine the property’s value. This is done to ensure the accuracy of the investment for the lender. In some cases, commercial property buyers may need to conduct additional inspections, such as environmental audits or soil tests, as required by the lending institution.
3. The Closing Agent: A closing agent, either a title company or an attorney, will be responsible for examining and insuring clear title to the real estate. They will research the property’s recorded history to ensure there are no encumbrances (such as mortgages, leases, liens) that could affect the title. The closing agent will certify that the title is clear and all encumbrances are included in the title.
4. Contingencies: Contingencies are conditions that must be met for the contract to become legally binding. For example, a common contingency is a satisfactory home inspection report. Buyers have the right to thoroughly review the property, obtain financing and insurance, and examine relevant documents like title reports and disclosures before completing the purchase.
5. Renegotiation: After inspections and review of the property, the buyer may request renegotiation of the contract terms, usually related to the price, based on their findings. It’s important to respond objectively and fairly while acting in your best interests. This is where a professional listing agent can provide valuable guidance and negotiate on your behalf.
6. Loan Approval and Appraisal: It’s advisable to give preference to buyers who have lender pre-approval, approval letters, or written loan commitments, as these provide a stronger guarantee of loan approval compared to pre-qualifications. The lender will typically send an appraiser to verify the property’s value and ensure the sales price is appropriate.

We, as experienced real estate professionals, understand the complexities of inspections, appraisals, and negotiations. Our commitment is to provide expert guidance and ensure your best interests are represented throughout the transaction, regardless of the circumstances.