Under Contract
Stick to the schedule.
The PSA will have strict timelines to mark every stage of closing the real estate contract. Meeting the requirements on time ensures a smoother flow of negotiations. It provides that each party involved is not in breach of their agreements. We will keep you updated during the process so you will always be prepared for the next step.
Inspections and Appraisals
Most buyers will have the property inspected by contracted third parties within the time frame that was agreed upon in the PSA. Some buyers will have several different inspectors inspect the property if they wish to obtain professional opinions from inspectors who specialize in a specific area (e.g., Environmental, HVAC, structure). If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution via a third party. Lending institutions must confirm that the value of their investment in your property is accurate.
The Closing Agent.
A title company or an attorney must be selected as the closing agent, whose job is to examine and insure a clear title to real estate. After researching the complete recorded history of your property, they will certify that 1) your title is free and clear of encumbrances (e.g., mortgages, leases, or restrictions, liens) by the closing date; and 2) all new encumbrances are duly included in the title.
Contingencies.
A contingency is a condition that must be met before a contract becomes legally binding. For instance, a buyer usually includes a contingency stating that their agreement is binding only when a qualified inspector has a satisfactory inspection report.
Before purchasing your property, the buyer reviews every aspect of the property, as provided by purchase agreements and any applicable addendums. 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, property boundary survey, arborist, mold, lead-based paint, HVAC, etc.
Depending on the outcome of these inspections, one of two things may happen:
Either each milestone is successfully closed, and the contingencies will be removed, bringing you one step closer to the closing; or
After reviewing the property and the papers, the buyer 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 demanded while acting in your best interests? This is when your agent can make a real difference in the transaction’s outcome. Having dealt with various property sales, we guarantee our expertise and total commitment to every customer, no matter their situation.