Buyers typically arrange for property inspections during the agreed-upon contract period. Some may hire multiple inspectors to evaluate specific areas like the roof or HVAC system. If financing is involved, the property will also undergo an appraisal by a licensed appraiser to ensure its value aligns with the loan amount. Commercial buyers may require additional tests, such as environmental audits or soil tests.
A closing agent, usually from a title company or attorney, ensures that the title is clear of any encumbrances and handles the final steps to transfer ownership.
Contingencies
A contingency is a condition that must be met before a contract becomes legally binding. Common contingencies include home inspections, obtaining financing, and reviewing the property’s legal documents. If any issues arise, the buyer may request a renegotiation of the contract terms, often involving price adjustments.
Having a professional agent is crucial to navigate these inspections, appraisals, and contingencies, ensuring a smooth process and protecting your interests.
Loan Approval & Appraisal
It’s advisable to accept offers from buyers with pre-approval or a commitment letter from their lender, ensuring stronger loan prospects. An appraiser from the lender’s company will then confirm that the property’s value matches the agreed sales price.