Inspections and Appraisals when Selling

The Buyer's Property Inspection

After a purchase agreement is signed, buyers often complete inspections as part of their due diligence process. The timing and scope of inspections are typically outlined in the purchase agreement.

Depending on the property and the buyer's preferences, inspections may include:

General home inspections
Roofing inspections
HVAC evaluations
Plumbing inspections
Pest inspections
Other specialized assessments

These inspections help buyers better understand the condition of the property before closing.

If the buyer is obtaining financing, the lender may also require an appraisal conducted by a licensed appraiser. The purpose of the appraisal is to provide an independent opinion of the property's market value and help the lender evaluate the transaction according to its lending requirements.

The Closing Agent

A closing agent—often an attorney or title company, depending on local practices—helps coordinate the final stages of the transaction.

Responsibilities may include:

Reviewing title records
Preparing and managing closing documents
Coordinating with buyers, sellers, lenders, and other parties
Facilitating the transfer of funds
Assisting with the transfer of ownership at closing

As part of the closing process, the closing agent will review title information and address any issues that may need to be resolved before ownership can be transferred. Requirements and procedures may vary based on the property, location, and specific transaction.

Once all contractual requirements have been satisfied and the closing process is complete, ownership of the property can be transferred according to applicable laws and local recording procedures.

When you are ready to get started, call us at 123.456.7890 or complete this short form and one of our agents will be in touch.

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What else you should know...

Contingencies

A contingency is a condition within a purchase agreement that must be satisfied before the transaction can proceed to closing. Contingencies are common in real estate transactions and are designed to provide buyers and sellers with time to complete certain requirements outlined in the contract.

Common buyer contingencies may include:

Obtaining financing
Completing property inspections
Securing required insurance coverage
Reviewing title and disclosure documents
Satisfying other contractual requirements

As part of the due diligence process, buyers may choose to conduct a variety of inspections depending on the property and their individual concerns. These inspections can include evaluations of the roof, HVAC system, plumbing, pest activity, property boundaries, septic systems, wells, fireplaces, pools, and other property components.

If inspections or other due diligence activities identify concerns, the buyer may request repairs, credits, or modifications to the contract terms, subject to the provisions of the purchase agreement. At that stage, both parties can review the request and determine how they would like to proceed.

Navigating Negotiations

Requests for repairs or changes to contract terms can be a normal part of the transaction process. When these situations arise, it's important to carefully evaluate the available information and consider the potential impact of each option.

A real estate professional can help explain the available choices, facilitate communication between the parties, and assist in navigating negotiations throughout the transaction.

Financing and Appraisal

If the buyer is obtaining financing, the lender may require documentation demonstrating the buyer's ability to complete the purchase. Buyers who have already completed portions of the lender's approval process may be better prepared to move forward with a transaction, although financing approval is never guaranteed until all lender requirements have been satisfied.

Many lenders also require an appraisal performed by a licensed appraiser. The appraisal provides an independent assessment of the property's market value and helps the lender evaluate the transaction according to its underwriting guidelines.

Because lending requirements, timelines, and approval processes vary, buyers and sellers should work closely with their respective professionals throughout the transaction to stay informed of any updates or requirements.

Tips for Sellers

Deep Clean Before Listing

A thorough cleaning can help create a strong first impression. Pay attention to kitchens, bathrooms, floors, windows, and other high-visibility areas.